ADVANCE RECD PRIOR TO GST
Query (Issue) Started By: – sachin shilamkar Dated:- 19-6-2017 Last Reply Date:- 9-11-2017 Goods and Services Tax – GST
Got 6 Replies
GST
We have recd some advance from customer against which we will make supply after 1st July (implementation of GST). What will be the tax applicability under GST for the same.
Reply By KASTURI SETHI:
The Reply:
Your point of taxation is the date of receipt of advance as per Point of Taxation Rules. You can adjust ST paid in June, 17 at the time of issuance of invoice in July, 17.
Reply By sachin shilamkar:
The Reply:
AS PER CURRENT TAXATION THERE IS NO TAX APPLICABLE ON ADVANCES RECEIVED FOR SUPPLY OF GOODS AND SERVICES.
WHAT WILL BE THE TAX APPLICABLE UNDER GST
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pplicable on the same.
Reply By MUKUND THAKKAR:
The Reply:
Dear
As per GST if any advance is received you have to pay the GST on advance.
if goods cleared after GST you must be charged GST , advance is part of your supply value.
Reply By VAMSI KRISHNA:
The Reply:
Respected KASTURI SETHI ji,
as you said in your reply, we can setoff serive tax paid in june (on advance receipt) in july… for example, total contract value is 20,000 customer paid advance of 5,000 in may and service tax on advances is paid in may itself. service is rendered in Aug. at the time of issue of invoice in august as like follows:
Taxable value : 20,000
GST @ 18% (IGST) : 2700 (15,000*18%)
Invoice value: 22700
Is it above invoice is correct in all respect
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