A receipt voucher under GST is a document issued by a supplier to a recipient when an advance payment is received before the supply of goods or services takes place. Under Section 31(3)(d) of the CGST Act, issuing a receipt voucher is mandatory when advance consideration is collected for a supply that has not yet been completed. The voucher serves as proof of payment and triggers the tax liability on the advance for service providers, while goods suppliers are currently exempt from paying GST on advances.
What Is a GST Receipt Voucher?
A receipt voucher is a statutory document issued under the GST framework to acknowledge the receipt of advance payment from a customer before the actual supply of goods or services. It is distinct from a tax invoice, which is issued only when the supply is made or completed.
The receipt voucher confirms that an advance has been received, establishes the date of receipt for tax liability purposes, documents the amount received and the applicable GST rate, and serves as a reference when the final tax invoice is issued against the advance.
Receipt Voucher vs. Tax Invoice
| Feature | Receipt Voucher | Tax Invoice |
| Issued when | Advance payment received before the supply | At the time of or before the supply of goods/services |
| GST applicability | GST payable on advance (services only) | GST payable on the full supply value |
| ITC for the recipient | Not available against the receipt voucher | Available against the tax invoice |
| Legal basis | Section 31(3)(d) CGST Act | Section 31(1) CGST Act |
| Adjustment | Adjusted when the tax invoice is issued | Final document for the transaction |
| Supply details | May not specify exact goods/services (if unknown at time of advance) | Must specify complete details of goods/services supplied |
When Must a Receipt Voucher Be Issued?
A receipt voucher must be issued in the following scenarios:
Advance received for services. When a service provider receives an advance payment before rendering the service, a receipt voucher must be issued, and GST must be paid on the advance amount. The tax liability arises at the time of receipt of advance under Section 13(2) of the CGST Act.
Advance received for goods. When a supplier of goods receives an advance payment, a receipt voucher must be issued for documentation purposes. However, following the notification under Section 12(2), suppliers of goods are currently not required to pay GST on advances received. The tax liability arises only when the goods are supplied, and a tax invoice is issued.
Nature of supply unknown at the time of advance. If the nature of the supply (goods or services) cannot be determined at the time of receiving the advance, the receipt voucher is still issued. The tax treatment (whether GST is payable on an advance or a deferred basis) is determined when the nature of the supply is identified.
Mandatory Contents of a Receipt Voucher
| Particulars | Requirement |
| Supplier’s name, address, and GSTIN | Mandatory |
| Recipient’s name, address, and GSTIN (if registered) | Mandatory for B2B; optional for B2C |
| A consecutive serial number (unique for each financial year) | Mandatory |
| Date of issue | Mandatory |
| Description of goods or services (if determinable) | Include if known; otherwise state “advance for future supply.” |
| Amount of advance received | Mandatory |
| GST rate and amount (CGST, SGST/UTGST, or IGST) | Mandatory for services; state “tax payable on supply” for goods |
| Place of supply | Mandatory (determines CGST/SGST or IGST applicability) |
| HSN code or SAC code (if determinable) | Include if known |
| Signature or digital signature of the supplier | Mandatory |
The serial number must be unique, contain only alphanumeric characters, hyphens, or slashes, and follow a consecutive sequence within each financial year. Multiple series of serial numbers can be maintained for different categories or locations.
Tax Treatment of Advances
For Service Providers
Service providers must pay GST on the advance at the applicable rate upon receipt. The GST is reported in GSTR-3B Table 3.1 for the period in which the advance is received. When the service is completed and the tax invoice is issued, the advance amount is adjusted. If the invoice amount equals the advance, no additional tax is payable. If the invoice exceeds the advance, GST is payable on the balance. The advance adjustment is reported in GSTR-1 Table 11 (advances received and adjusted).
For Goods Suppliers
Goods suppliers issue a receipt voucher for documentation, but do not pay GST at the time of receiving the advance. GST becomes payable only when the goods are supplied, and a tax invoice is issued. The receipt voucher amount is adjusted against the tax invoice at the time of supply.
| Scenario | Receipt Voucher | GST on Advance | Tax Invoice | GST on Invoice |
| Service advance: Rs. 1,00,000 at 18% | Issue receipt voucher; Rs. 18,000 GST payable | Yes | Issue when service is rendered | Adjust advance; pay on balance |
| Goods advance: Rs. 1,00,000 at 18% | Issue a receipt voucher; no GST payable yet | No | Issue when goods are supplied | Full GST of Rs. 18,000 on the invoice |
| Advance for unknown supply type | Issue receipt voucher; GST treatment pending | Depends on nature | Determine at the time of supply | Apply the applicable treatment |
Refund Vouchers
If the supply for which the advance was received does not materialise, the supplier must issue a refund voucher to the recipient. The refund voucher returns the advance amount along with the GST collected on it.
The refund voucher must contain the supplier’s GSTIN, name, and address; a unique serial number; the date of issue; a reference to the original receipt voucher number and date; the amount refunded; the GST refunded (CGST, SGST/UTGST, or IGST); and the reason for the refund.
The supplier claims the refund of GST paid on the advance through GSTR-3B, reducing the output tax liability in the period when the refund voucher is issued. This adjustment is reported in GSTR-1 Table 11.
Receipt Vouchers in GSTR-1 and GSTR-3B
| Return | Table | What to Report |
| GSTR-1 | Table 11(1) | Advances received for which receipt vouchers are issued |
| GSTR-1 | Table 11(2) | Advances are adjusted against invoices issued during the period |
| GSTR-3B | Table 3.1 | Output tax liability on advances received (services) |
| GSTR-3B | Table 3.1 (adjustment) | Reduction of liability for advances adjusted against invoices |
Accurate reporting of advances in both GSTR-1 and GSTR-3B is essential. Mismatches between advance receipts reported in GSTR-1 Table 11 and the output liability in GSTR-3B can trigger discrepancy notices from the tax department.
Key Terms
• Receipt Voucher: A statutory document issued under Section 31(3)(d) of the CGST Act when an advance payment is received before the supply of goods or services
• Refund Voucher: A document issued when the supply for which an advance was received does not take place, refunding the advance and GST to the recipient
• Section 31(3)(d): The CGST Act provision mandating issuance of a receipt voucher upon receipt of advance consideration for future supply
• Section 13(2): The time of supply provision for services that triggers GST liability at the time of receipt of advance payment
• Table 11 GSTR-1: The section in GSTR-1 where advances received and advances adjusted against invoices are reported for each tax period
| Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Consult a qualified tax professional for advice specific to your situation. |
Managing Advance Payments Under GST?
Ensure every advance is documented with a proper receipt voucher, and the tax liability is reported correctly. Use WFYI tools to track advances, generate vouchers, and file accurate GST returns. Explore GST Tools on WFYI
Frequently Asked Questions
Q1: Is a receipt voucher mandatory for every advance payment received?
Yes. Under Section 31(3)(d) of the CGST Act, a receipt voucher must be issued whenever an advance payment is received before the supply of goods or services. This applies to all registered suppliers regardless of the advance amount.
Q2: Must goods suppliers pay GST on advances received?
No. Goods suppliers are currently exempt from paying GST on advance receipts. The tax liability arises only when the goods are supplied, and a tax invoice is issued. However, a receipt voucher must still be issued for documentation.
Q3: What happens if the supply does not take place after receiving an advance?
If the supply does not materialise, the supplier must issue a refund voucher, returning the advance amount and the GST collected. The GST refund is claimed by reducing the output tax liability in GSTR-3B for the period in which the refund voucher is issued.
Q4: Can the recipient claim ITC on a receipt voucher?
No. ITC can only be claimed against a tax invoice, not against a receipt voucher. The recipient must wait until the supplier issues the tax invoice upon completion of the supply to claim ITC on that transaction.
Q5: How are advances reported in GSTR-1?
Advances received are reported in GSTR-1, Table 11(1), with a rate-wise breakup. When a tax invoice is issued against a previously received advance, the adjustment is reported in Table 11(2). The net effect flows into the computation of the output tax liability.
