X Ltd can take input on this advance?
X Ltd place order to Y Ltd Rs. 1,00,000, X Ltd need to pay 20% advance i.e. 20,000 but y Ltd asking X Ltd to pay 20,000+GST since You Ltd has to pay GST on that, in this case X Ltd can take input on this advance?
Taking input tax credit not possible because One of the essential condition to avail input tax credit is Buyer should Have valid invoice & Receipt of goods. There is no additional cost for buyer & seller because at the time of raising invoice only balance tax to be paid ie. Invoice value tax Minus Advance amount tax.This will be taken care by Electronic credit & cash register.