Gst on advance paid on services, Goods and Services Tax - GST

[Richa Goyal]

My newly formed firm who has not applied for GST is paying advance to a company for services. That company will pay GST on advance. I will get GST number in 20 days as I have still just applied for PAN. that company will issue me a Bill in January. Now will I get GST credit in January or just because when that Company has paid GST when I was not having GST number, I will not be able to claim credit ?

Posts / Replies

[ANITA BHADRA]

Dear Madam

Section 18 of CGST Act 2017 states - If a person applied for registration within 30 days from the date on which he becomes liable - shall be entitled to get ITC from the day immediately preceding the day he become liable .

In your case , suppose you formed firm and became liable for GST on 01st Nov 2017 and you applied for GST registration within 30 November , You will get credit of tax on advance dt 01st Nov 2017 .

I hope , your query get resolved

Regards

[Richa Goyal]

thank you for your reply... in case, I get registration late due to certain reason, how shall i take the credit and how shall it reflect in my returns.. since the seller must have already shown my sales n their B2C sales.

Thanks

[Vamsi Krishna]

As of now GSTR-2 has been deferred and hence no need to bother about matching concept from GSTR-1 of the seller.

You can claim credit subject to the timelines mentioned in the above reply.

I think you shall first get PAN and then GST Reg since GST Reg is based on PAN.

So try to get both of them quickly to avail timely credits.