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About this tool
Check whether an advance attracts GST, split the CGST, SGST or IGST, and see which voucher and return line it belongs in.
Whether an advance attracts GST depends entirely on the time of supply: section 13(2) makes an advance for services taxable on the day the payment is received, while Notification No. 66/2017-Central Tax removes that liability for advances against goods for every registered person outside the composition scheme. This checker takes the receipt, the type of supply, the registration status and the nature of supply, then returns the verdict, the CGST/SGST or IGST split, the receipt voucher required under section 31(3)(d) and the exact GSTR-1 and GSTR-3B lines. It also applies the rule 50 fallbacks of 18% when the rate is unknown and inter-State treatment when the place of supply is unknown.
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The single most common error — treating both the same way — is resolved by the notification that actually applies.
An undeterminable rate defaults to 18% and an undeterminable place of supply is treated as inter-State, exactly as the provisos require.
The output tells you which document to issue and whether the amount belongs in Table 11A of GSTR-1 or nowhere at all.
Yes. Under section 13(2) of the CGST Act the time of supply of services is the earlier of the invoice date or the date of receipt of payment, so tax is due in the month the advance is received. Issue a receipt voucher under section 31(3)(d) and report the amount in Table 11A of GSTR-1 and in outward supplies in GSTR-3B.
No, for a registered person outside the composition scheme. Notification No. 66/2017-Central Tax dated 15 November 2017 exempts them from paying tax on advances for goods, so the time of supply is simply the date of the invoice. Charge GST when you raise the tax invoice, not when the booking amount arrives.
18%. The first proviso to rule 50 of the CGST Rules requires tax at 18% where the rate is not determinable at the time of receipt, and the second proviso says that where the nature of the supply cannot be determined it is treated as an inter-State supply, so IGST is charged.
Issue a refund voucher under section 31(3)(e) and adjust the tax already paid. The advance is reversed through Table 11B of GSTR-1 in the period of the refund, which releases the tax against your other liabilities. Keep the refund voucher and the bank entry together, since this is a commonly queried adjustment in departmental scrutiny.