GST on Advance

Tax Insightsfrom India Tax & Regulatory Services Government removes requirement of payment of GST on advances received for supply of goods and allows manual filing of refund applications November 16, 2017 In brief The CBEC has issued notification nos. 55-66/2017-Central Tax, Circular no. 16/16/2017-GST, 17/17/2017-GST and order no. 9-10/2017-GST, all dated 15 November, 2017. While majority of the amendments give effect to the changes announced in the 23 rd GST Council meeting, there are a few other significant relaxations, which were not specifically mentioned in the press note issued post the GST Council meeting. Further, in some cases, there are a few minor changes between the press release and the final notifications issued. In detail composition scheme. It should applicable for refund of IGST be noted that this relaxation is paid on supplies made to SEZ The key amendments are applicable only on the or exports of services as well as detailed below: advances received post 15 refund of unutilised input tax Payment of GST on November, 2017 for supply of credits on inputs or input advances received for goods. Post this notification, services used in making zero- supply of goods the time of supply for goods rated sales. The procedure for The GST law provides for would be the date of issue of process of refund claim has payment of GST at the time of invoice by the supplier (or the also been listed in detail in receipt of advance towards due date, by when the invoice circular no. 17/17/2017-GST supply of goods or services. needs to be issued). This would dated 15 November, 2017. The Initially, notification no. apply even in case of a change procedure has largely 40/2017-Central Tax dated 13 in rate of tax. remained the same as provided October, 2017 was issued to Manual submission of earlier. The circular mentions remove the requirement of refund applications that the provisional refund payment of GST on advance should be granted in seven Notification no. 55/2017- days from the date of issue of receipts towards supply of Central Tax dated 15 acknowledgement (which is goods, for persons having November, 2017 has made required to be issued within turnover of less than INR 15 amendments in GST Rules. fifteen days of filing of the million in a year. Vide One of the most important complete application) and the Notification no. 66/2017- changes is introduction of rule final refund order should be Central Tax dated 15 97A, which permits submission issued within sixty days of the November, 2017, this of refund applications date of receipt of the complete relaxation has been extended manually in Form GST RFD application form. to all persons, except persons 01A. This procedure is opting to pay GST under www.pwc.in Return for non. the requirement to for the past few months. 2017. 11 December.Tax Insights Changes in due dates for submission of returns: Return Period Description of Due date as per Final due dates Notification Return the press release as per the number notification GSTR 5 July-October. quickly without much delay to resulting in additional redress the cash flow issue of compliance and record  The facility of submission of the exporters. 9- as well as transition credits 10/2017-GST revised) PwC Comments extended to advances for mainly to exporters. 2017 15 December. please contact your this relaxation has not been local PwC advisor PwC Page 2 . This will be a boost. Return for person 15 December. No for all the months Central Tax service from due date prescribed from July. 2017 GSTR 5A July-October. 2017 61/2017- 2017 providing OIDAR for July. which also awaiting refunds of tax paid on  The relaxation granted from has similar challenges. received for supply of goods is issue an advance receipt However. No for all the months Central Tax persons due date prescribed from July. 2017 to outside India to a for other months. 2017 Order no. October. business. October. exports or input tax refunds payment of GST on advances However. it is important that a great relief to the industry. 2017 11 December. 2017 27 December. However. who are supply of services. voucher at the time of receipt the refunds are sanctioned This requirement was not only of advance remains. keeping requirements but was manual refund claims is also a cash flow issue since another taxpayer friendly Let’s talk credit of such GST is available measure for expeditious processing of the refund For a deeper discussion of how to the recipient only on receipt claims of taxes paid/ input tax this issue might affect your of goods/ services. 2017. 2017 60/2017- 2017 resident taxable for July. 2017 to for other months. credits. 2017 unregistered person in India Tran 1 (Original Return for 31 December. pwc. Mumbai and Pune. 6th Floor 8th Floor Opp. 77/A. ©2017 PwC. For more information about PwC India's service offerings. Shapath V. Yerwada. 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