Question

An assessee is getting advance lease rental of 50 lakhs for years. I understand GST needs to be paid on Rs.50 lakhs at the time of getting the advance of Rs.50 lakhs. Whether Tax Invoice need to be raised at the time of getting advance of Rs.50 lakhs or the tax invoice has to be raised on monthly basis for the proportionate amount of monthly lease rent?

Answer

You have rightly said that GST needs to be paid at the time of getting advance of Rs 50 lakhs, however on receipt of advance payment you are required to issue a receipt voucher or any other document evidencing receipt of such payment as per section 31(3)(d).

So far as tax invoice is concerned, as per section 31(2) registered person supplying taxable service is required to issue tax invoice either before or after the provision of service but within a prescribed period specified in Rule 47 i.e. within 30 days from the date of supply of service. Therefore as aforesaid it is not mandatory to issue invoice at the time of getting advance, you can issue invoice on monthly basis. (Reply dt.12/09/2018)