Receipt/Refund Voucher To Be Issued for Advance Payment

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

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