Service Provider like Professional, Consultants or Freelancer etc., should aware on GST liability on the advance payment received against the supply of services at the time of receipt before service provided.

The GST liability on advance payment arises at the Time of Supply of Services.
Section 13 (2) of CGST Act prescribe the Time of Supply of Services as follows;
The time of supply of services shall be the earlier of the following dates, namely:

a) Invoice Date OR Payment Receipt Date, whichever is earlier;
b) Service Provision Date (if the invoice is not issued within the prescribed time limit) OR Payment Receipt Date, whichever is earlier.

Therefore, in Practically Speaking, the Time of Supply will be the invoice date or payment receipt date, whichever is earlier.

Exemptions to this provision
In the following two cases, GST is not required to pay on advance payment received:
a) where the supplier of taxable service receives an amount up to Rs.1000/-.
b) This provision does not applicable in respect of sale of goods(Notification No.66/2017- Central Tax dated 15.11.2017.

At the time of receipt of Advance from Client/ Customer, Service Provider must issue a Receipt Voucher which contains details of “ Name, Address, GSTIN of Service Provider and Serial Number, date, Name, Address and GSTIN of Client, description of Service, amount and GST rate and amount as prescribed by the law.

Importantly, the details of Receipt of Advance should be mentioned in Point 11A of Form GSTR 1.
The client ie Service Receipt cannot claim input tax credit on advances till the receipt of services.