GST · 26 June 2026
Advance Receipt Under GST: When Do You Issue a Receipt Voucher?
A receipt voucher is the document a GST-registered supplier issues when it receives an advance payment, before the goods or services are supplied, under Section 31(3)(d) of the CGST Act, with contents set by Rule 50 of the CGST Rules. It is not a tax invoice; the tax invoice is raised later, when the supply is actually made. Whether GST is payable on the advance depends on what is being supplied. For services, GST falls due when the advance is received under Section 13(2). For goods, Notification 66/2017-Central Tax removed the advance trigger, so no GST is paid on an advance for goods; the tax waits for the invoice. A receipt voucher still has to be issued either way. If the order is later cancelled and no invoice is raised, the supplier issues a refund voucher under Section 31(3)(e) and Rule 51 to return the advance.
By Mrs. Swapna Patel
Last reviewed
26 June 2026
In this section
Answers
- Advance Receipt Under GST: When Do You Issue a Receipt Voucher?
- What Is GSTR-1, the GST Return of Outward Supplies?
- What Is GSTR-3B, the Monthly GST Summary Return?
- What Is the Time of Supply Under GST, and When Does Tax Become Due?
- Credit Note vs Debit Note Under GST: When Do You Issue Each?
- What Is a Pakka Bill? The GST Invoice That Counts as Valid
- What Is a Kaccha Bill? Why the Rough Slip Has No GST Standing
- Why Move From a Kaccha Bill to a Pakka Bill?
- How to Upgrade From a Kaccha Bill to a Pakka Bill (GST Invoice)
- 5 GST Invoice Mistakes That Trigger a Tax Notice (And How to Fix Them)
I only need to raise a document when I deliver the goods or finish the service, not when I take an advance.
On receiving an advance you must issue a receipt voucher under Section 31(3)(d) of the CGST Act, not a tax invoice. For an advance on services, the GST is due at that point under Section 13(2).
What is a receipt voucher under GST?
Short answer
The document a supplier issues on receiving an advance, before supply, under Section 31(3)(d) with contents set by Rule 50. It is not a tax invoice.
- It records the advance: the amount, the rate, and the supply it relates to.
- The actual tax invoice comes later, when the goods or services are supplied.
- It is different from a payment receipt, which acknowledges money against an invoice already raised.
- Why it matters: skipping the receipt voucher on an advance is a documentation default even where no tax is due on it.
Do you pay GST on an advance payment?
Short answer
On an advance for services, yes, under Section 13(2) the tax is due when you receive it. On an advance for goods, no: Notification 66/2017 removed that trigger, so GST waits for the invoice.
| Advance received for | GST on the advance? | Document |
|---|---|---|
| Services | Yes, tax due on receipt (Section 13(2)) | Receipt voucher now, tax invoice later |
| Goods | No, tax waits for the invoice (Notification 66/2017) | Receipt voucher now, tax invoice later |
| Order later cancelled, no invoice raised | Any tax paid is adjusted or refunded | Refund voucher (Section 31(3)(e)) |
Source: Section 13, CGST Act and Notification 66/2017-CT. The goods position rests on a notification; confirm the current CBIC position before relying on it for a large advance.
What must a receipt voucher contain?
Short answer
The Rule 50 fields: supplier and recipient details, a serial number, the date, the amount, the rate, and the tax charged. Where the rate or place of supply is not yet known, treat the rate as 18% and the supply as inter-state.
- If you cannot tell the rate at advance stage, Rule 50 says use 18%.
- If you cannot tell the place of supply, treat it as an inter-state supply and charge IGST.
- Why it matters: these defaults stop an unclear advance from being under-taxed, and the figures are trued up on the final tax invoice.
What if the advance is refunded or paid in cash?
Short answer
If the order is cancelled and no invoice is raised, issue a refund voucher under Section 31(3)(e) and Rule 51. A cash advance also runs into the Section 269ST Rs 2 lakh cash-receipt limit.
A refund voucher closes the loop on an advance that did not turn into a supply, and lets you reverse any tax you had paid on it. Watch the cash angle too: an advance taken in cash counts toward the Section 269ST limit of Rs 2 lakh from a single person, so a large cash advance can breach it on its own. Banking the advance keeps both the GST and the income-tax position clean.
References & related
Primary sources
- Section 31, Central Goods and Services Tax Act 2017 (tax invoice, receipt and refund vouchers) — India CodeSection 31(3)(d) receipt voucher on advance; Section 31(3)(e) refund voucher on cancellation.
- Rule 50, Central Goods and Services Tax Rules 2017 (contents of a receipt voucher) — CBICMandatory fields of a receipt voucher, including the rate and the inter-state default where these are not known.
- Notification 66/2017-Central Tax, 15 November 2017 — CBICRemoves the requirement to pay GST on an advance received for a supply of goods.
- Section 13, CGST Act 2017 (time of supply of services) — India CodeGST on a service falls due on the earlier of invoice or payment, so an advance for services is taxed when received.
Last reviewed: 26 June 2026