Is it appropriate to pay the full amount, including GST, requested by a vendor as an advance for materials deliverable after a 5-month period?
Is it appropriate to pay the full amount, including GST, requested by a vendor as an advance for materials deliverable after a 5-month period?
Contractually you can do so. But liability to pay GST on goods only arises when invoice is issued by supplier.
Totally reasonable since the supplier is also not liable to pay GST on advance received for goods.
If it would have been advance for services then GST would have been payable.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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