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Do we have to pay GST on Advances Received for Services?

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Do we have to pay GST on Advances Received for Services?

  • This topic has 1 reply, 2 voices, and was last updated 2 months ago by gstdoctor.
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  • #983
    Milan Tiwari
    Participant

    Do we have to pay GST on Advances Received for Services?

    #986
    gstdoctor
    Keymaster

    In general, the time of supply is earliest of issuance of invoice or receipt of payment. Therefore, in case of advance received for any supply, time of supply is fixed at the point when advance is received, irrespective of the fact whether the supply is made or not.

    As per Notification no. 66/2017 dated 15.11.2017, all suppliers of goods who have not opted for composition scheme, have been exempted from the burden of paying GST on Advances received.

    But the suppliers of services are still required to pay GST at the time of receipt of advances.

    For more information, read GST on Advances Received for Services.

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