Hello Sir
please answer my query
When payment linked to completion of stages of construction of building: When plastering is completed on 24th July 2019
In above case plastering work is completed on 24 July 2019 but we have received some advance in the month of May and June and our milestone get achieved in the month of July, so we need to pay liability on advances received in the month of May and June.
Or is there any way in GST provisions that our GST liability accrue only on raising invoices and not on advances received?
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GST on billing not on advances received
Replies (2)
as per section 13(2) if any person supply of service then time of supply
i) date of issue of invoice or
ii) date of receipt of payment
whichever is earlier.
and
as per sec 31(5) continuous supply of service - date of issue of invoice
where the due date of payment is ascertainable from contract, the invoice shall be issued on or before the due date of payment and if due date not ascertainable from contract, the invoice shall be issued before or at the time of receives the payment
i) date of issue of invoice or
ii) date of receipt of payment
whichever is earlier.
and
as per sec 31(5) continuous supply of service - date of issue of invoice
where the due date of payment is ascertainable from contract, the invoice shall be issued on or before the due date of payment and if due date not ascertainable from contract, the invoice shall be issued before or at the time of receives the payment
No.. you have to pay GST when receiving advance.. as it was against supply of service..
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