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Construction Business

Aparna (accountant) (189 Points)

10 November 2019

Construction Business

In case of construction business, as per Income Tax and accounting purpose, Turnover is calculated on Percentage of completion method, while GST is applicable on an advance receipts.

Que: Which turnover is to be considered for filling of Annual return?

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2 Replies

NAVEEN (Sr.ACCOUNTANT) (261 Points)
Replied 11 November 2019

Turnover in Gst annual return will be total of invoice issued on completion/ on party completion during the FY

GST is applicable on advance. and you have to angst it against the proper bills
In annual return you can show the advice received and adjusted during the FY separately as it is not part of turnover

turnover will be the total of the invoice only

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 12 November 2019

As per GST , the Aggregate turnover does not include Advances , hence advances not included in GST turnover.
Refer definition of Aggregate turnover in section 2(6)of CGST Act