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.