Businesses tend to demand advances to safeguard their interest. The advance received may be adjusted with the final payment, future supplies or may be refunded. Under the GST law, for any advance received (for any supply), the time of supply is fixed at the point when the advance is received, irrespective of the fact whether the supply is made or not. That means GST on the advance amount needs to be paid at the time at which advance is received. This requires compliances with a few procedures, documentation and reconciliation.
Source: mastersindia.co
Latest Posts in "India"
- GST Reduction on Fruit Drinks Excludes Colas; Prices Remain Unchanged for Carbonated Beverages
- Supreme Court Stays Retrospective GST Penalty, Examines Applicability to Non-Taxable Persons
- India Unveils Simplified GST Rate Structure
- GST 2.0: Key Changes, New Rates, and Business Impact Explained
- India Reduces GST on Solar and Wind Equipment to 5%, Cutting Renewable Energy Project Costs
