Taken a deposit or advance before delivering? Whether GST applies depends on what you're supplying. Here's the rule.
Advances are common in custom orders, services and B2B deals. The GST treatment differs between goods and services, and getting it wrong creates reconciliation headaches.
Advances liable to GST are reported in the relevant return period and then adjusted when you raise the final invoice. Keep the trail clean so totals reconcile.
Use receipt vouchers for advances and adjust them on the final tax invoice. Tidy documentation prevents double-counting.
Our in-house CA & CS team set up your virtual office, VPOB and GST end to end — from ₹15,290/yr.
💬 Talk to our team View plans →For services, generally yes, when received. For goods, most suppliers account for GST at invoice/supply, not on the bare advance.
A receipt voucher where GST applies, later adjusted against the tax invoice.
Reported when liable and adjusted when the final invoice is raised.
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