HI..
ABC LTD IS A CONSTRUCTION COMPANY AND PROVIDING CONSTRUCTION SERVICES TO XYZ COMPANY,
AS PER AGREEMENT BETWEEN ABC LTD & XYZ CO. THERE IS SOME MILESTONE OF WORK FOR PAYMENT BY XYZ TO ABC LTD,
MEANWHILE XYZ COMPANY GIVING REGULARLY ADVANCES TO ABC LTD, MY QUERY IS ABC LTD WILL RAISE INVOICE TO XYZ ONLY AFTER COMPLETION OF MILESTONE AS PER SECTION 31 OF CGST ACT BUT COMPANY IS RECEIVING ADVANCES FROM XYZ CO, SO WE NEED TO PAY GST ON THIS ADVANCES OR WE MAY ESCAPE FROM LIABILITY ON ADVANCES AS PER SECTION 13(2a).
AS PER MY UNDERSTANDING SECTION SAYS LIABILITY WILL ARISE ON ISSUE OF TAX INVOICE OR ADVANCE PAYMENT WHICHEVER IS EARLIER
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TAX LIABILITY ON ADVANCES RECEIVED
Replies (8)
in case of continuous supply, GST is leviable only on raising the invoice as per milestone
You mean we wouldn't have to pay GST on advance received
yes... if the agreement is silent on billing milestone, then GST to be paid on receipt basis which is not your case
Need to pay GST on receipt of advance even in case of continuos supply of goods/services.
Hi, I think there is a notification number 66/2017 dated 15th November 2017, specific exemption from the payment of GST on advance receipt has been granted to the supplier of goods
Yes..
Advances on goods not required from 15th Nov..
On services to be paid either nomal or continuos supply..
GST is payable on receipt of advance against the supply of service, irrespective of the nature of service.
Section 13 rws 31 and notification 66/2017.... yes, GST to payable on receipt of advance.... sorry for wrong answer
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