GST on Advance Payments : Free Study Material
Here is the Free study material on GST on Advance Payments
GST on Advance Payments received for Goods
For the Period from 01.07.2017 to 12.10.2017 :
GST on Advance received for Goods is required to be paid as per Section 12(1) of CGST Act 2017 which read as follow
The time of supply of goods shall be the earlier of the following dates, namely:—
(a) the date of issue of invoice by the supplier or the last date on which he is required, under sub-section (1) of section 31, to issue the invoice with respect to the supply [ Note -1 ] ; or
(b) the date on which the supplier receives the payment with respect to the supply:
For the Period from 13.10.2017 to 14.11.2017 :
No GST on Advance received for Goods if aggregate turnover less than Rs 1.5 crores because as per Notification No 40/2017 Central Tax Dated 13th October, 2017 made payment of tax on issuance of invoice by registered persons having
- aggregate turnover less than Rs 1.5 crores and
- who did not opt for the composition levy under section 10 of the said Act
Comment . Thus GST on advance received for goods was required to be paid if
- aggregate turnover was above Rs 1.5 crores or
- Dealer opts for Composition Scheme
For the Period from 15.11.2017 onwards :
Notification No 66/2017 Central Tax Dated 15th November, 2017 : No GST on Advance Payment for Goods if the person did not opt for the composition levy under section 10 of CGST Act 2017
Comment : Thus GST on advance received for goods was required to be paid dealer opts for Composition Scheme
GST on Advance Payments received for Services
You can refer this article GST on Advance received for Services which will explain why you needs to pay GST on advance received for services
As on date, there is no notification issued that there is no GST on Advance Payments received for Services. Thus you are required to pay GST on Advance Payments received for services.
Relevant Study material on GST on Advance Payments
[Video ] GST on Advance Payments : Notification Analysis
GST on Advance Payments made before GST Act Comes into force
GST on Advance Payments of Goods ; Services ; Analysis
GST -Taxation of Advance Payments
Is GST Tax invoice required for Advance Payment received for Goods / Services
Topic Wise Commentary on GST Act
For more you can also visit Govt GST Website