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All QuestionsCategory: GST AAR Tamil Nadu 2020GST ON ADVANCES RECEIVED IN CASE OF WORKS CONTRACT AND HOW ADJUST THAT IN RETRUN WHEN ISSUING FINAL INVOICE
Profile photo of nksabapathi@gmail.comnksabapathi@gmail.com asked 1 year ago

GST ON ADVANCES RECEIVED IN CASE OF WORKS CONTRACT AND HOW ADJUST THAT IN RETRUN WHEN ISSUING FINAL INVOICE

Kindly let me know when advance money is received in case of works contract at times we need to collect GST . Do we need to issue Invoice for this ? or nay other document pleaase let me know and in whch sheet or header it should be reported . When final invoice raised how to adjust the advancne . pleee

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1 Answers
Profile photo of PremPrem answered 1 year ago

In case of advance for services, the GST is required to be paid on advance. Works contract being a service as per Schedule II of GST Act. Thus the GST is liable to be paid on this advance.
In this case you need to issue a receipt voucher