Goods and Services Tax – Started By: – Harish GV – Dated:- 19-8-2018 Last Replied Date:- 25-8-2018 – Im a self employee, my job is to exporting services to outside the India, all my export services fall under 0% GST, Now if i am receiving 100% full advance payment before raising the invoice do i need to pay any GST on advance payment? – Reply By KASTURI SETHI – The Reply = Export being zero rated no GST is required to pay on advance. – Reply By ANITA BHADRA – The Reply = Yes , You need to pay GST on advance payment . As per the explanation 1 to Section 12 of the CGST Act, 2017 a supply shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment. Government has come out with Notification
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if considerd do i need to pay tax for advance payment?Thank you – Reply By SHIVKUMAR SHARMA – The Reply = It is not the advance payment because the transaction is Completed in the same month i.e.In August. – Reply By ANITA BHADRA – The Reply = It is not an advance . Since you had exported without filing LUT ( Letter of Undertaking ) , You need to pay IGST and then claim refund for taxes paid – Reply By Harish GV – The Reply = Thank you Shivkumar Sharma Sir and Anita Bhadra Mam for replyingAbove replay is just example for me to understnad and the original transaction happened belowI received 100% full payment on July 27th 2018 from foreign clientIm going to generating the invoice and exporting the software on 25th August 2018I already regist
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not. Accordingly, GST needs to be paid with reference to the time at which advance is received,If a service exporter receives advances, it is beneficial to him to apply for refund at that stage itself. – Reply By KASTURI SETHI – The Reply = Govt. is very liberal regarding export whether of goods or services. Such procedural requirements do nit create hurdle in exporting under LUT ( without payment of tax). Govt. has been liberal since the inception of Central Excise Act. – Reply By Ganeshan Kalyani – The Reply = LUT is easy to apply and it beneficial as the exporter need not have to pay IGST. In my view, the querist is not liable to pay tax as he is in possession of lut. – Reply By Ramaswamy S – The Reply = Not liable to tax.RegardsS.Ramasw
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