Gst on advances

how gst chargeable in advances
Replies (4)
Quick Summary
GST is not applicable on advances received for goods. However, for services, GST must be paid in the month the advance is received, reported in GSTR-3B, and shown as an advance in GSTR-1. Once the service is provided and an invoice is issued, the transaction is adjusted in the B2B/B2C and advance adjustment columns of GSTR-1.

On receipt of advance relating to goods there is no GST leviable . But if the advance is in relation to services the GST to be paid while filing the GST returns on the respective month in which the advance is received . The same to be shown in advances column in GSTR-1
once the service is provided and invoice is raised the same to be shown in B2B/ B2c and the same to be shown in Advance adjustment column in GSTR-1.
In GSTR-3b tax to be paid when advance is received.
What is your question relating to gst in advance?
You are in service or trade

GST is chargeable only on open advances received for services. This means if you have received advance in the that month but the transaction is not complete then you need to pay tax while filing GSTR-3B for such open advances and show the receipt voucher in amendments section while filing GSTR-1. If such advances relate to goods then GST is not leviable

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