Manglam Ltd. agreed to provide consultancy services to Global Finance LLP in the month of June, 2023 for which it received an advance of ₹2,50,000 on 12th May, 2023 from Global Finance LLP. Subsequently, in the month of

(i) In this case advance received on 12th May, 2023 for services to be rendered in the month of June 2023. Since advance is received prior to completion of services, the time of supply of service shall be the date of receipt of advance i.e. 12th May, 2023. Hence, Manglam Ltd. is liable to pay GST in his May, 2023 month's return. (ii) However, in case GST is paid by the supplier on advance received for a future event which got cancelled subsequently and for which invoice is issued before supply of service, the supplier is required to issue a credit note in terms of section 34 of the Central Goods and Services Tax Act, 2017. (iii) He shall declare the details of such credit notes in the return for the month during which such credit note has been issued. The tax liability shall be adjusted in the return subject to conditions of section 34 of Central Goods and Services Tax Act, 2017. There is no need to file a separate refund claim. (iv) However, in cases where there is no output liability against which a credit note can be adjusted, registered persons may proceed to file a refund claim [Circular No. 137/07/2020 GST dated 13.04.2020]. (v) Therefore, in the given case, Manglam Ltd. is required to issue a credit note, declare its details in the return for the month during which such credit note has been issued and adjust the tax liability. However, if there is no output liability of Manglam Ltd. against which said credit note can be adjusted, it may proceed to file a refund claim under section 54 of the Central Goods and Services Tax Act, 2017.