GST helpdesk: An expert answers your questions pertaining to the new tax and its impact

As per the new tax regime, GST needs to be paid on advances for supply of goods or services that is yet to be made. This is mandated in the Section 12 of the CGST Act. However, an individual who has made the advance will not be eligible for the GST charged on such advances as credit. 

This is because, the input or input service is yet to be received. Likewise, when a deposit is received, no GST is payable. However, when such a deposit is adjusted for the supply to be made or has been made, then GST would become payable. 

D Arvind, Managing Partner, D Arvind & Associates, LLP