GST on works contact

This discussion clarifies GST applicability on advances received for works contracts. GST is generally payable on advances for services, with the liability starting from the receipt date. Consequently, interest may be applicable from the due date of the GSTR 3B return if the advance was received in 2017 but GST was paid later, even if the work commenced in 2022. However, if the advance was treated as a security deposit, GST would not be applicable.