Advances received against a supply to be made in future :

Section 12 and 13 of the draft model bill deals with the time of supply of goods and services respectively and determine when tax shall become payable. Sub-section (2) of both sections provide that tax shall become payable when advance payment is received against any supply even if the recipient has not received goods or services or even if supplier has not actually supplied goods or services. Therefore, in case of an advance received, the supplier  will have to pay tax and therefore it needs to be captured in the statement of outward supplies. This will have to be settled finally when the supply is made and final invoice is issued when the recipient will be allowed to claim ITC. So, accordingly, if the tax is to be paid on the basis of advance payment received against a future supply of goods and/or services, then the following details would be required to be provided:

(i) GSTIN/UID/GDI/Name of customer

(ii) State Code

(iii) HSN Code for goods / Accounting code for services

(iv) Amount of advance received

(v) Tax Rate (CGST and SGST or IGST and Additional Tax)

(vi) Tax Amount (CGST and SGST or IGST and Additional Tax)