Advance received against export of services with IGST, Goods and Services Tax - GST

[KARAN VERMA]

Sir

If i have received advance from foreign customer against export of service with IGST, then whether i have to deposit GST on receipt of advance payment or at time of issuing invoice.

What will be situation if i export services without IGST, whether i have to pay GST on advance payment received ?

Posts / Replies

[KASTURI SETHI]

Liability for discharging GST arises at the time (date) of receipt of advance. Export with IGST in order to avoid any problem. You cannot retain the amount of tax collected from the buyer.

[KARAN VERMA]

Sir, at present i have export services with IGST, then whether i have to pay GST on advance receipt. If yes, then this will cause mismatch in GSTR-1 and GSTR-3B.

[KASTURI SETHI]

I have explained what is requirement of GST laws. Read 'Time of supply of services' under Section 13 of CGST Act along with definition of 'consideration' under Section 2(31) of CGST Act. Also go through legal definition of 'deposit' and 'advance' and difference between the two in the eyes of GST laws.

I think by reading conjointly word for word you can evolve some way-out. You will have to go into above Sections deeply.

[Ganeshan Kalyani]

In my view, if you are going to do export with payment of IGST then GST is payable on advance receipt also. And if otherwise then no tax is payable. I welcome views of the expert as well.