adjust of advance and gst against the bill
Query (Issue) Started By: – Ramakrishnan Seshadri Dated:- 31-8-2018 Last Reply Date:- 31-8-2018 Goods and Services Tax – GST
Got 4 Replies
GST
We are going to construct one factory.
For this we have awarded the contract to one construction company.
We have paid advance and gst to them.
Now they have given their first bill after after adjusting the 50% advance and 50% gst on this bill.
Whether this correct or not?
Details as below in example:-
Total contract value : 100 crores
Advance 30% : 30 crores +GST 5.4 crores
Bill submitted for 25%on contract value :25 crores +4.5 crores
They have adjusted 50% of the advance and gst paid in their first bill submitted.ie.: 15 crores +GST
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required to pay GST on outward supply of goods, at time of receipt of advance.
Notification No. 66/2017 – Central Tax, dated 15/11/2017, extended the benefit to all taxable persons (other than Composition dealers).
This relief is not available on outward supply of services. GST is payable on advance received in case of outward supply of services.
Construction Company providing SERVICES to you . They need to pay GST on received of advance itself.
In my view , GST on Advance can not be kept pending for adjustment in their subsequent bills
Reply By Ganeshan Kalyani:
The Reply:
GST is applicable on receipt of advance toward service. The supplier of service shall pay tax on advance received and adjust that tax paid against the invoice he w
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