Aggregate Turnover in case of Advances received

[Krishna Murthy]

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 ?

AI Summary

Aggregate turnover inclusion of advances can trigger registration when receipt of payment constitutes the time of supply.
Advance receipts are included in aggregate turnover for registration purposes when the time of supply is on receipt of payment. If consideration is received prior to supply and thus forms part of the time of supply, those advances constitute part of aggregate turnover and must be taken into account in assessing the liability to register under GST.