Tax on advance amount

gst is applicable receipt or issuing bill which ever is earlier

so on advance received gst is applicable 

sir Thank you for your reply, weather credit of this is available to the person paying that advance.?

 

yes credit is avaible 

but as per Section 16(2)(b) of GST act receipt of goods and services is required for claiming credit. then it is not possible to avail ITC on advance paid until the material and services are received 

Yes GST is liable to be paid on any advance amount. In pursuance of the extracts provided in Sec 12(2) &  Sec 13(2) of CGST Act, regarding 'time of supply of goods and services', the liability to pay tax on goods arises on the date, when the supplier is required to issue invoice or the date when he receives payment whichever is earlier.In case of supply of services, similar understanding can be obtained from Sec 13(2). This explains regarding chargeability of GST on any advance amount received regarding any goods or service. Furthur, regarding availment of ITC on the same amount, Sec 16(2) lays down the conditions for availing the credits.It includes that ITC can be availed w.r.t any goods and service only if the said goods and services has been received.

Same will be the case in case of reverse charge too.Refer Sec 12(3) in case of supply of goods and Sec 13(3) in case of supply of services which explains that the date of making payment can be taken as the date when a person will be liable to deduct tax(subject to conditions).Please refer those sections for clarity.

@ Anant Jain, No, Payment received against non taxable goods is not liable to be taxed.

So maybe its safe to assume that no advance tax has to be paid on Advance Payments received against Exports.

If any advance payment is received for any export then no GST is payable on such amount because the exports of goods is a zero rated supply in present GST regime.

Yes, GST is payable on advance received.  Receipient of goods is not eligible for input tax credit on tax paid by supplier on advance received from customer.

The liability to pay tax on goods shall arise at the time of supply.

The time of supply shall be the earlier of the following dates.

1) The date of issue of invoice by the supplier or the last date of issue of invoice u/s 31

2) The date on which the supplier receives the payment.(Ref Section 12)

As per Section 16, The person who has paid advance against supplies, must possess a tax invoice and he should have received the goods. Since these conditions are not fullfilled at the time of advance payment, the receipient of goods is not eligible to take input tax credit on advance paid. 

CREDIT IS NOT AVAILABLE TO BUYER ON GST PAID AGAINST ADVANCE RECEIVED BY SUPPLIER.

UNLESS THE BUYER RECEIVES GOODS AND INVOICE, HE CAN NOT AVAIL INPUT TAX CREDIT.