No GST on advance received against supply of GOODs for assesses having aggregate turnover up to Rs. 1.5 crore

Central Government vide Notification No. 40/2017 – Central Tax dated 13th October,2017 has provided that the registered person whose aggregate turnover in the preceding financial year did not exceed Rs. 1.5 crores or the registered person whose aggregate turnover in the year in which such person has obtained registration is likely to be less than Rs. 1.5 crores and who did not opt for the composition levy under section 10 of the CGST Act,2017 as the class of persons who shall pay the central tax on the outward supply of goods at the time of issue of invoice by the supplier or the last date on which supplier is required under section 31(1) to issue the invoice with respect to the supply and shall accordingly furnish the details and returns.

Therefore, such persons shall not be required to pay tax on advance received against future supplies of goods.

This notification will have prospective effect. This notification will only apply to ‘goods’ and not to ‘services’ or transactions involving goods which are ‘treated as’ services like leasing or works contract.

Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs

Notification No. 40/2017–Central Tax

New Delhi, the 13th October, 2017

G.S.R. 1254(E).- In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the ‘said Act’), the Central Government, on the recommendations of the Council, hereby notifies the registered person whose aggregate turnover in the preceding financial year did not exceed one crore and fifty lakh rupees or the registered person whose aggregate turnover in the year in which such person has obtained registration is likely to be less than one crore and fifty lakh rupees and who did not opt for the composition levy under section 10 of the said Act as the class of persons who shall pay the central tax on the outward supply of goods at the time of supply as specified in clause (a) of sub-section (2) of section 12 of the said Act including in the situations attracting the provisions of section 14 of the said Act, and shall accordingly furnish the details and returns as mentioned in Chapter IX of the said Act and the rules made thereunder and the period prescribed for the payment of tax by such class of registered persons shall be such as specified in the said Act.

[F. No. 349/74/2017-GST (Pt.)]

(Dr.Sreeparvathy S.L.)
Under Secretary to the Government of India

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