In Important Document Series after
Tax Invoice, Bill of Supply and Challan, Next is Advance Receipt. I believe
that Hon'ble PM Mr. Modi would have not been explained these provisions under
GST, otherwise such provisions do not form part of GST Bill. If not Kill, It
will harm small companies badly. In many industries small enterprises depend on
the advances to run their day to day operations received from their big
clients, but now since GST would be payable on Receipt of Advance or Issue of
Invoice, whichever is earlier. [Sec 12(2)], with condition Input Tax can be
claimed on or after issue of Invoice/Completion of Activity [Sec16(2)]. Many
clients will refrain from issuing advances to their small suppliers. SMEs will
be left to have no other choice to go for unsecured loans at higher interest
rates in absence of collateral that will shrink their margins. Here is some
basic features of Advance Receipt. Thanks. [GstSutras4]#SukhF_GST
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