Answer

1. F

   Facts

   Record every advance with date, customer and amount. For services, GST is usually due when the advance is received; for goods, GST on advances is currently not payable under a notification.

2. P

   Provisions and law

   • Rule 56, CGST Rules 2017Details of records: supplies, stock, advances, tax paid, ITC and names of suppliers and buyers, kept at each place of business
   • Sec 12 and 13, CGST Act 2017Time of supply for goods and services
   • Notification 66/2017-CTExempts payment of tax on advances for goods for most taxpayers
3. A

   Analysis

   Rule 56 requires records of advances received. For services, the time of supply under Sec 13 is generally the earlier of invoice or payment, so a receipt voucher with tax is needed. Example: an interior designer receives ₹50,000 advance; GST at 18 percent is included and payable in that month's return. A furniture seller taking a goods advance generally pays tax at the invoice. Check the latest notification.

4. C

   Conclusion

   1. 1Write a receipt voucher for each advance.
   2. 2Note whether it is for goods or services.
   3. 3For services, include the tax in that month's return.
   4. 4Adjust the advance when you issue the final invoice.

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