GST advance tax
One of business friend tells me that he need to pay GST tax on order even though he may have received 20% advance. His concerns are
1. Advance is taken to start the work. If he pays18% GST on the full order, but have received only 20% as advance, he is left with just 2% to start the work.
2. If the order is cancelled by the customer later, having paid 18% on the complete project, he stands to lose.
I am not sure whether this is right info. or not.
I wanted to know how the above scenarios can be addressed better? more
1. Advance is taken to start the work. If he pays18% GST on the full order, but have received only 20% as advance, he is left with just 2% to start the work.
2. If the order is cancelled by the customer later, having paid 18% on the complete project, he stands to lose.
I am not sure whether this is right info. or not.
I wanted to know how the above scenarios can be addressed better? more
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If I prepare and submit a Services Invoice on Day 1 while I receive the payment after 90 days, say Day 2, will I be liable for Services GST payment on Day 1 or Day 2? more
Nov 11
There are situations when the business is in loss, even then one has to pay GST advance, how sensible it is? will government refund that advance tax? I feel this claim of advance payment can be challenged in court. I very much feel this amounts to simple robbery, comments Please. more
Nov 09
GST on advance is to be paid on the amount of advance only and not on full contract value.
In case of cancellation of order GST will get refunded / adjusted ( if advance also refunded ) more
In case of cancellation of order GST will get refunded / adjusted ( if advance also refunded ) more
Nov 10
I have come across many friends who are all small-scale enterpriser with lots of confusions on GST. Many are so confused they many even don't know what point to ask for clarifications. There no dearth of advisers around and that put them in further confusion. The Govt should have come up with a call centre type support at least for a year. I am afraid how a mega company like infosys can develop such a software that the country today is suffering. The point here is GST liability arises only on billing as such there is no need to pay GST on the advance amount taken. more
Nov 09
OFFHAND (To share own thoughts, despite having no hand-on exposure / experience): While one has no personal experience or exposure, to the best of quick understanding, the point of concern is more or less the same as covered in some of the material HERE - https://www.google.co.in/search?dcr=0&source=hp&ei=kBkEWsDOM8K70gT2vp24CQ&q=advance+payment+of+GST-+articles&oq=advance+payment+of+GST-+articles&gs_l=psy-ab.12...2105.30685.0.34317.33.32.0.0.0.0.357.4904.0j28j1j1.30.0....0...1.1.64.psy-ab..3.27.4255.0..0j35i39k1j0i131i67k1j0i131k1j0i67k1j0i20i263k1j0i10k1j0i22i30k1j33i160k1j33i21k1.0.ulbJuxUvvK8 ; And more particularly HERE https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUKEwigqIHdlLHXAhUEpJQKHe-SB7AQFgguMAE&url=http%3A%2F%2Findiataxguide.in%2Fblog%2Fgst%2Faccounting-treatment-gst-advance-payment%2F&usg=AOvVaw2y-dJzEyYJAieFttABapBQ (which is mainly limited to "Accounting Treatment" To infer therefrom, it is one of the dicey areas the GST Code, being of a very recent origin, is replete with problems galore; if so, no clear-cut answer or conclusion could be expected to be available or reached. In the context, a mention may be made of the specially designed provisions in the law on income-tax , specifically covering treatment of advance payments made and tax paid by way of such as TDS , so on. In the law on IDT, so far as is to be gathered, there appears to be no such corresponding provisions, to be of ready help. May be, eminent professionals, having intimate experience and field exposure could share their views, to enlighten, on the above and other related aspects. more
Nov 09
This Govt with the genius of the FM and some half baked Advisors is screwing up the economy and our industrial enterpreneurs who have risked their social and economical situations and started business for realising their dreams. This Govt thinks they are all frauds ,scamsters and thieves. GST is a wonderful concept for a growing economy but these Economists of this Govt have completely messed it up and made it a biggest burden on the common man, SMEs and traders.
Hope better sense prevails and the GST act is amended or modified at the earliest more
Hope better sense prevails and the GST act is amended or modified at the earliest more
Nov 10
Dear Mr. Saba Pathy, GST is not applicable on advance payment received against an order. The GST will be required to be paid only after completion of order and raising Tax Invoice. more
Nov 09
