Applicability of GST on payment prior to dispatch of goods
Query (Issue) Started By: – MohanLal tiwari Dated:- 15-9-2017 Last Reply Date:- 25-9-2017 Goods and Services Tax – GST
Got 10 Replies
GST
Dear Panelist,
We are supplying few of our goods with payment terms "prior to dispatch" and immediately on receipt of payment material is dispatched on same day or within 2-3 days.
Please advise whether this payment prior to supply of goods should be considered as advance and required Receipt Voucher is to be issued or it can be taken payment against supply and GST should be charged in supply invoice.
Reply By KASTURI SETHI:
The Reply:
As per Section 12(2)(b) of CGST Act, your liability for deposit of GST becomes due fro
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OVINDARAJAN:
The Reply:
If the recipient insists, in my view, you have comply with the request of the recipient.
Reply By Ganeshan Kalyani:
The Reply:
Any amount received from customer before the actual supply is made is treated as advance. If the receipt of advance and supply of material against the advance falls in the same month, then GST is payable on supply of material. But if advance is received and supply of material is in next month then GST is payable on advance money.
If customer is asking for receipt voucher then you may issue the same. Thanks.
Reply By KASTURI SETHI:
The Reply:
I agree with you, Sir.
Reply By Ramaswamy S:
The Reply:
Receipt voucher is to be provided for the advance received. GST is paid at the time of i
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