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?
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Is it acceptable to make a payment in advance that includes the GST amount ?
Replies (4)
Contractually you can do so. But liability to pay GST on goods only arises when invoice is issued by supplier.
Do you think it's reasonable to deny the vendor's request to include the GST amount as an advance, considering it's a significant amount, and suggest they raise the advance request based only on the base amount? This would prevent us from losing interest on the additional amount
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.
Thank you very much for taking the time to share
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