GST is not Payable on Advances Received for Supply of Goods [Read Notification]

TDS - Supply of Goods - Taxscan

The Central Government, through a notification issued today, exempted all taxpayers from payment of tax on advances received in case of supply of goods under the Central GST Act, 2017.

This is according to the decisions taken by the Goods and Service Tax Council on last Friday.

The Council last week, found that the requirement to pay Goods and Service Tax on advances received seems to be burdensome for small dealers and manufacturers.

In order to mitigate their inconvenience on this account, the Council decided that taxpayers having annual aggregate turnover up to Rs. 1.5 crores shall not be required to pay GST at the time of receipt of advances on account of supply of goods. The GST on such supplies shall be payable only when the supply of goods is made.

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