Advances received before GST Registration

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..... Advances received before GST Registration
Query (Issue) Started By: - Deepak Bihani Dated:- 25-3-2020 Last Reply Date:- 28-3-2020 Goods and Services Tax - GST
Got 3 Replies
GST
Is GST applicable on advances received before GST Registration in a service organization for which service is rendered after the registration. What if part advance is received before registration and part is r .....

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..... eceived after registration. Reply By PAWAN KUMAR: The Reply: Dear sir, As per my view since advance received prior to gst registration which taxability attract as per time of supply and hence gst is payable on the date of receipt of payment. Reply By KASTURI SETHI: The Reply: In this scenario, GST is applicable. Covered under Section 13 (2) (a) & (b) of CGST Act. Invoice is issued on or afte .....

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..... r 1.7.17. Service is supplied on 1.7.17 or after 1.7.17. Go through relevant Section/sub-sections. SECTION 13. Time of supply of services. - (1) The liability to pay tax on services shall arise at the time of supply, as determined in accordance with the provisions of this section. (2) The time of supply of services shall be the earliest of the following dates, namely :- (a) the date of issue o .....

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..... f invoice by the supplier, if the invoice is issued within the period prescribed under [* * *] section 31 or the date of receipt of payment, whichever is earlier; or (b) the date of provision of service, if the invoice is not issued within the period prescribed under [* * *] section 31 or the date of receipt of payment, whichever is earlier; or Q. What if part advance is rec .....

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..... eived before registration and part is received after registration. In this scenario also GST is applicable. Reply By Ganeshan Kalyani: The Reply: In simple terms, if two of instances happens in pre-GST time then old tax rate will apply. Otherwise, GST will be applicable. In your case, the advance (one instance) happened in pre-GST, and provision of service and raising of invoice happened post-G .....

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..... ST. Hence, GST is applicable.
Discussion Forum - Knowledge Sharing .....

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