Tax on advance amount

RECEIVER OF ADVANCE NEEDS TO PAY GST ON THE AMOUNT RECEIVED AS ADVANCE.

BUYER WILL NOT GET INPUT CREDIT ON GST PAID BY RECEIVER OF ADVANCE.

WHEN ORDER IS EXECUTED , BUYER WILL GET INVOICE AND GOODS. SUPPLIER WILL CHARGE FULL TAX ON SUPPLY AMOUNT AND DEDUCTION FOR GST PAID ON ADVANCE WILL BE CLAIMED. BUYER WILL GET INPUT TAX CREDIT ON RECEIPT OF GOODS. IF ADVANCE IS NOT FULLY UTILISED, PROPORTIONATE GST PAID ON ADVANCE, WILL BE PASSED ON TO THE BUYER THROUGH INVOICE.

NO DIRECT INPUT CREDIT ON GST PAID ON ADVANCE RECEIVED BY THE SUPPLIER.