TaxTMI 
TaxTMI 
TaxTMI 
Einvoice - Aggregate Turnover - Advance
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....invoice - Aggregate Turnover - Advance<br> Query (Issue) Started By: - KSA Associates Dated:- 3-5-2025 Last Reply Date:- 14-5-2025 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>XYZ ltd sales for the year is 4.5cr. Apart from this, they have received the advance of Rs 60,00,000. Kindly guide whether E-invoicing is applicable in this case. In nutshell, while calculating Aggregate turnover....
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...., whether advance should also be included?? Reply By KASTURI SETHI: The Reply: An advance amount is subject to final adjustment. Advance amount itself is not consideration. It takes the form of consideration only at the time of final adjustment i.e. at the time issuance of invoice. Hence in my view, answer is NO. Reply By Sadanand Bulbule: The Reply: I endorse th....
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....e reply of Sh. Sethi Sir. Reply By YAGAY andSUN: The Reply: We duly endorse the views of our Experts and share our inputs in support of the aforesaid views of our experts. The Queries is asking a very relevant question regarding aggregate turnover and the applicability of E-invoicing under the Goods and Services Tax (GST) law in India. Let's break this down using the legal framework under GST. ....
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.... ✅ 1. Legal Basis for E-Invoicing Applicability Under Rule 48(4) of the CGST Rules, e-invoicing is mandatory for registered persons whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds the prescribed threshold (currently Rs.5 crore w.e.f. 1 August 2023). 🔹 Aggregate turnover is defined under Section 2(6) of the CGST Act, and it includes: "the aggre....
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....gate value of all taxable supplies (excluding inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same PAN, to be computed on all India basis and excludes central tax, State tax, Union territory tax, integrated tax and cess." ✅ 2. Treatment of Advances in Aggregate ....
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....Turnover This is the core of your query. Let's examine two things: a) Is Advance Taxable? Under Section 13 of the CGST Act, time of supply of services can be triggered either by invoice or receipt of payment, whichever is earlier. So, advance receipts for services are subject to GST at the time of receipt, unless specifically exempted. For goods, as per Notification No. 66/2017 - Central Tax, ....
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....GST is not payable on advances received for supply of goods (except for composition taxpayers). b) Does Advance Form Part of Aggregate Turnover? This is where clarity is needed: Advance itself is not a "supply" until adjusted, and in some cases, GST is not even paid on receipt (e.g., for goods). However, aggregate turnover includes the value of "supplies", not "receipts". Therefore, advances u....
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....nadjusted against actual supplies should not be included in aggregate turnover because they are not yet taxable supplies. Once the advance is adjusted against a taxable supply (and invoice is issued), it becomes part of the turnover at that point. 📌 Key Interpretation: Advance does not qualify as turnover until an actual supply (supported by an invoice) occurs. ✅ Conclusion on E-i....
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....nvoicing Applicability in XYZ Ltd's Case Sales for the year = Rs.4.5 Cr (actual supplies). Advance = Rs.60 lakhs (yet to be adjusted; not invoiced yet). Aggregate turnover = Rs.4.5 Cr, assuming no other supplies exist. 📌 Therefore, e-invoicing is not applicable, as aggregate turnover does not exceed Rs.5 Cr. 🔍 Your View is Legally Sound You are correct in asserting: "Advance....
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.... amount itself is not consideration. It takes the form of consideration only at the time of final adjustment i.e., issuance of invoice." This aligns with the definition of "consideration" and aggregate turnover under the GST Act. *** Reply By KASTURI SETHI: The Reply: M/s.Yagay and Sun and Sh.Sadanand Bulbule, Sirs, A stamp of approval on my reply by both of you keeps my int....
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....erest alive in this forum. Reply By Shilpi Jain: The Reply: If the 60L advance is in respect of supply of services then that will be added to the aggregate turnover since GST is payable on advance in case of services. If this advance is in respect of supply of goods then it need not be considered for aggregate turnover. Reply By Ganeshan Kalyani: The Reply: I agree with the view of the expert....
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....s.<br> Discussion Forum - Knowledge Sharing ....