Do i need to pay GST on Advance Payment?
Query (Issue) Started By: – Harish GV Dated:- 19-8-2018 Last Reply Date:- 25-8-2018 Goods and Services Tax – GST
Got 12 Replies
GST
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?
\nReply By KASTURI SETHI:
\nThe Reply:
\nExport being zero rated no GST is required to pay on advance.
\nReply By ANITA BHADRA:
\nThe Reply:
\nYes , You need to pay GST on advance payment .
\nAs 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 inv<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n l taxes i need to pay any tax? = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ply is fixed at the point when advance is received, irrespective of the fact whether the supply is made or not. Accordingly, GST needs to be paid with reference to the time at which advance is received, = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Do i need to pay GST on Advance Payment? Query (Issue) Started By: – Harish GV Dated:- 19-8-2018 Last Reply Date:- 25-8-2018 Goods and Services Tax – GSTGot 12 RepliesGSTIm 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 … Continue reading “Do i need to pay GST on Advance Payment?”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-13298","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13298","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13298"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13298\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13298"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13298"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13298"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nis that amount will be considered as advance payment? and if considerd do i need to pay tax for advance payment?
\nThank you
\nReply By SHIVKUMAR SHARMA:
\nThe Reply:
\nIt is not the advance payment because the transaction is Completed in the same month i.e.In August.
\nReply By ANITA BHADRA:
\nThe Reply:
\nIt is not an advance .
\nSince you had exported without filing LUT ( Letter of Undertaking ) , You need to pay IGST and then claim refund for taxes paid
\nReply By Harish GV:
\nThe Reply:
\nThank you Shivkumar Sharma Sir and Anita Bhadra Mam for replying
\nAbove replay is just example for me to understnad and the original transaction happened below
\nI received 100% full payment on July 27th 2018 from foreign client
\nIm<\/p>\n
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\nIf a service exporter receives advances, it is beneficial to him to apply for refund at that stage itself.
\nReply By KASTURI SETHI:
\nThe Reply:
\nGovt. 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.
\nReply By Ganeshan Kalyani:
\nThe Reply:
\nLUT 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 <\/p>\n
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