The definition of Aggregate Turnover as per Sec 2(6) does not include advances received. As per Sec 22, a person is liable for registration when the Aggregate Turnover exceeds 20 Lakhs.
In one situation, rent receivable or received is ₹ 18 Lakhs PA and advance received is ₹ 5 Lakhs which is adjustable against future rents which shall be last 5 months of the lease tenure. Is the person liable for registration?
Time of supply for advance received for services is on receipt of payment. Are advances to be considered for the purpose of computing aggregate turnover ₹ 20 Lakhs ?
Advances Count in Aggregate Turnover: Clarifying GST Registration Threshold for Rent Receivable and Advances Exceeding 20 Lakhs A discussion on whether advances received should be included in the calculation of Aggregate Turnover for Goods and Services Tax (GST) registration. The initial query raised concerns about whether a person with rent receivable of 18 Lakhs and an advance of 5 Lakhs, totaling 23 Lakhs, is liable for GST registration, given the threshold is 20 Lakhs. Respondents clarified that advances are considered part of Aggregate Turnover, and registration is required as the turnover exceeds the threshold. The point of taxation is when payment is received or supply is made, whichever comes first. (AI Summary)
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