Goods and service tax on Advance payment to Overseas Supplier, Goods and Services Tax - GST

[SNEHAL SHAH]

Dear sir ,

As per GST Law Tax liability on Advance also .

If we give order for procure goods/materials to overseas vendor ( As a Import ) and some amount will pay as a advance , than GST applicable on advances and who will pay GST ( as per me GST will pay as per reverse charge mechanisam ).

Please provide your valuable input sir .

Regards,

SNEHAL

Posts / Replies

[MUKUND THAKKAR]

GST is applicable in case you have received advance in connection of supply of goods or services,

In your case you had paid advance for procurement of import goods so GST is not applicable to you under RCM.

if you paid RCM and material arrived in India in BCD and IGST will be charged by custom. if you paid under RCM than your import duty will be double. first you paid under RCM and time of clearance of goods.

RCM is not applicable to you against advance for procuring Import Material.

[SNEHAL SHAH]

Thanks a lot sir for valuable reply .