GST Applicability on Receipt of Advance

goods and services tax

GST on Receipt of Advance

As per the clarification issued on 3rd June 2017 by the GST Council, following treatment are affected;


  • If the invoice is raised in the same tax period in which advance is received, it is clarified that there is no need to report the advance separately.
  • Rate wise details of advance received and
  • Invoice not issued to be disclosed
  • Advances received in the earlier period and adjusted against invoice issued in the current period should be disclosed.



Following are the tax compliances;

1. Receipt 0f invoice should be Issued,

2. Levy of GST on the advances received on the following options;

GST @ 18%  levy,  if the rate of tax is not known at the time of receipt of Advance. Treat Supply as Interstate, if not known at the time of supply.


Note: GST Registration re-opens on June 25.




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