Notification No. 66/2017 – Central Tax Explained

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Notification No. 66/2017 – Central Tax: Seeks to exempt all taxpayers from payment of tax on advances received in case of supply of goods

GST: [To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

G.S.R. (E):— In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act) and in supersession of notification No. 40/2017-Central Tax, dated the 13^th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.1254(E), dated the 13^th October, 2017, except as respects things done or omitted to be done before such supersession, the Central Government, on the recommendations of the Council,

hereby notifies the registered person who did not opt for the composition levy under section 10 of the said Act as the class of persons who shall pay the central tax on the outward supply of goods at the time of supply as specified in clause (a) of sub-section (2) of section 12 of the said Act including in the situations attracting the provisions of section 14 of the said Act, and shall accordingly furnish the details and returns as mentioned in Chapter IX of the said Act and the rules made thereunder and the period prescribed for the payment of tax by such class of registered persons shall be such as specified in the said Act.

(Dr. Sree Parvathy S.L.)
Under Secretary to the
Government of India

Note: - The principal notification No.40/2017-Central Tax, dated the 13^th October, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1254(E), dated the 13^th October, 2017.

📚 Frequently Asked Questions (FAQs): Notification No. 66/2017 – Central Tax

Q1: What is Notification No. 66/2017 – Central Tax?

Answer:
Notification No. 66/2017 – Central Tax exempts registered taxpayers from paying GST on advance payments received for the supply of goods. GST becomes payable only when the goods are supplied or invoiced.

Q2: When was Notification No. 66/2017 issued?

Answer:
The notification was issued on 15 November 2017 by the Government of India under the CGST Act, 2017.

Q3: Does GST apply to advance payments after this notification?

Answer:
For goods, GST is not payable at the time of receiving advance.
However:
GST still applies to advance payments for services.

Q4: Which section of GST law allowed this notification?

Answer:
The notification was issued under Section 148 of the CGST Act, which allows special procedures for certain classes of taxpayers.

Q5: Who can benefit from Notification No. 66/2017 – Central Tax?

Answer:
The benefit applies to registered taxpayers supplying goods, except those who opted for the composition scheme under Section 10.

Q6: Does this rule apply to composition scheme taxpayers?

Answer:
No. Composition taxpayers already follow simplified tax rules and are not covered by this notification.

Q7: What notification was replaced by Notification No. 66/2017?

Answer:
It superseded Notification No. 40/2017 – Central Tax issued earlier.

Q8: How does this notification improve cash flow?

Answer:
Earlier, businesses had to pay GST before supplying goods. Now, they pay GST only when goods are delivered, which improves working capital.

Q9: Does this rule apply to services?

Answer:
No. GST is still payable on advances received for services.

Q10: How should advances be reported in GST returns?

Answer:
Advances for goods are generally not taxable until invoice or supply, but proper reporting should still be maintained.
Businesses can file accurate returns through:
https://finodha.in/gst-return-filing/

Q11: Is GST registration mandatory to apply this notification?

Answer:
Yes. The benefit applies only to registered GST taxpayers.
If you need help registering, visit:
https://finodha.in/online-gst-registration/

Q12: How can businesses ensure correct GST compliance?

Answer:
Businesses should:
Maintain invoice records
Track advance payments
File GST returns regularly
Consult GST experts when needed
Finodha provides professional GST compliance services:
https://finodha.in/gst-compliance/

Q13: Does this notification affect time of supply rules?

Answer:
Yes. It effectively modifies the time of supply provisions under Section 12 for goods by removing tax liability on advances.

Q14: Why was this notification important for businesses?

Answer:
It simplified GST compliance by removing the requirement to pay GST before the actual supply of goods, reducing unnecessary tax burden.