Question
Is GST payable on advances received from customers?
Answer
Bottom line: GST is payable on advances for services, but not on advances for goods.
1. Services
If you receive an advance before raising the invoice, GST is due at the time of the advance — issue a receipt voucher.
2. Goods
For a normal (non-composition) supplier, no GST is payable on an advance for goods; tax is due only at the time of supply (Notification 66/2017).
3. Keep them apart
Record the two separately so you neither pay early nor miss the tax.
Compute the GST with our GST Calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.