Friday, 21 April 2017

Advance Receipt Voucher under GST

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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