GST on Advance Receipt Calculator
Work out the GST payable on an advance received before invoice — split into CGST + SGST or IGST — and see instantly when advances on goods are exempt.
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- Instant, on-screen results
- Built by our CA · CS team
- Rules cited on the page
Enter your figures — the result on the right updates as you type.
Advance receipt breakdown
Receipt voucherGet your GST advances & vouchers handled by a CA
We set up receipt vouchers, adjust advances against invoices and file your GST returns accurately.
Disclaimer: Indicative estimate under the CGST/SGST/IGST Acts. Advance-GST treatment depends on your exact facts; confirm the time of supply and place of supply with your advisor. Goods exemption per Notification 66/2017 – Central Tax.
GST on advances — the rule in one screen
When you receive money before raising an invoice, GST may become payable on that advance. For services, the time of supply is the earlier of invoice date or payment date — so an advance triggers GST immediately. For goods, Notification 66/2017 removed advance-GST for all registered suppliers, so you pay GST only when the invoice is issued.
Advance-GST treatment — goods vs services
The single biggest question is whether the advance attracts GST at all. It depends entirely on what you supply. If you receive an advance inclusive of GST, back-calculate the taxable value; if exclusive, add GST on top.
| Time of supply | Earlier of invoice / payment |
| On advance received | GST due |
| Document to issue | Receipt voucher |
| When to pay | Month advance received |
| On final invoice | Adjust advance, tax balance |
| Governing law | Notification 66/2017-CT |
| On advance received | No GST |
| Document to issue | Receipt voucher (no tax) |
| When GST arises | On invoice / removal of goods |
| Effect | Cash flow relief for suppliers |
Worked examples
Same ₹1,18,000 advance, two different supplies. For services at 18% inclusive, back out the taxable value and split the GST; for goods, no advance-GST applies at all.
Key terms explained
Receipt voucher
The document you must issue on receiving an advance for services under Section 31(3)(d). It records the advance and the GST charged, and is the basis for reporting the advance in GSTR-1 / GSTR-3B.
Refund voucher
If the advance is later refunded because the order is cancelled and no invoice was raised, issue a refund voucher and reverse the GST originally paid on that advance.
Inclusive vs exclusive
If the advance is inclusive of GST, taxable value = advance × 100 / (100 + rate). If exclusive, GST is simply advance × rate ÷ 100 charged on top of the amount received.
Notification 66/2017
Removed the requirement to pay GST on advances received for a supply of goods for all registered persons. GST on goods arises only at the time of invoice — a major cash-flow relief.
Questions people ask
Short answers on GST on Advance Receipt. Tap a question to open it.
01Is GST payable on an advance received?
For services, yes — the time of supply is the earlier of the invoice date or the payment date, so GST is payable when the advance is received. For goods, Notification 66/2017 removed the requirement, so GST is paid only on the invoice.
02What document is issued for an advance?
A receipt voucher under section 31(3)(d), showing the amount, the rate and amount of tax, and whether it is payable on reverse charge. If the supply is later cancelled, a refund voucher is issued.
03How is tax computed if the rate is not known at the time of advance?
Rule 50 provides that where the rate is not determinable, tax is paid at 18%, and where the nature of supply (inter-state or intra-state) is not determinable, it is treated as an inter-state supply.
04Is an advance shown in GSTR-1?
Yes, in table 11A as advances received on which tax is paid, and adjusted in table 11B when the invoice is subsequently issued against that advance.
05Can the recipient claim credit on an advance paid?
No. Input tax credit is available only on receipt of the goods or services against a tax invoice, so a receipt voucher does not support a claim.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.