Lability to pay GST on initial & interim advance

In re Engineer Private Limited (AAR GST Telangana)

Whether the applicant is required to pay GST on ‘initial advance’ of 5% and ‘interim’” advance of 7.5% on Ex works value of goods supplied under ‘First Contract Agreement’ dated 9^th February, 2022 with M/s. Singareni Collieries Company Limited?

The applicant is eligible for the benefit of Notification No.66/2017 Central Tax, dated 15^th November, 2017 as discussed supra and accordingly the tax liability on sale of goods, as per First Contract, will arise as specified in clause (a) of sub-section (2) of section 12 of the said Act i.e. at the time of supply, which is the date of issue of invoice by the taxpayer or the last date on which he is required, under section 31, to issue the invoice with respect to the supply.

FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, TELANGANA

1. M/s. PES Engineers Private Limited Hyderabad, 1^st floor, Pancom chambers, 6-3-1090/1/A, Somajiguda, Hyderabad-500082, Telangana (36AABCP4220B1Z3) has filed an application in FORM GST ARA-01 under Section 97(1) of TGST Act, 2017 read with Rule 104 of CGST/TGST Rules.

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