{"id":13735,"date":"2020-08-26T05:32:54","date_gmt":"2020-08-26T05:32:54","guid":{"rendered":"https:\/\/www.cagmc.com\/?p=13735"},"modified":"2024-06-03T18:03:24","modified_gmt":"2024-06-03T12:33:24","slug":"taxability-of-advances-taken-under-gst-regime","status":"publish","type":"post","link":"https:\/\/www.cagmc.com\/blog\/taxability-of-advances-taken-under-gst-regime\/","title":{"rendered":"Taxability of advances taken under GST regime"},"content":{"rendered":"

There are so many queries asked regarding whether all types of advances are exempt under Goods and Service Tax or not. Here the clarification regarding this doubt by taking the help of various provisions of the law.<\/p>\n

The provisions for the time of supply under GST<\/a> play an important role in ascertaining that whether a transaction is taxable or not.<\/p>\n

\"Taxability<\/p>\n

According to the section 12 of the CGST Act, 2017 time of supply of goods is earliest of the following:<\/p>\n

    \n
  1. Date of issue of invoice<\/li>\n
  2. Date of receipt of payment\/ advance<\/li>\n
  3. Date on which invoice should be issued.<\/li>\n<\/ol>\n

    In the above section the second point is of receipt of advance this means the taxpayer receiving advance must pay GST on the money received.<\/p>\n

    Note: for the supply of goods advance received is not subject to GST, the entire amount will be taxed on the issue of the invoice.<\/p>\n

    Later on Notification No. 40\/2017- central tax dated 13.10.2017 has been issued according to which the registered person shall pay tax on the outward supply of goods at the time of supply as specified in section 12(2)(a) of the CGST Act, 2017 if he satisfied the following conditions:<\/p>\n