The Government has given relaxation to all businesses from paying goods and services tax (GST) on advances received for supplying goods with effective from November 15, 2017. To give the effect, the Central Government has issued notification based on recommendation made by GST council in its 23rd Meeting in Guwahati.
Earlier such relaxation was available only to small registered person whose aggregate turnover in the preceding financial year did not exceed one crore and fifty lakh. This move will increase the liquidity for businesses and reduce compliance burden on all registered person.
However, services sector shall continue to face such obligation which is in line with erstwhile service tax laws and pay GST on advance payment.