Turnover – turnover in common parlance means total value of goods or services sold during a particular period of time.

Aggregate turnover [2(6)] – means aggregate value of ALL

  • Taxable values (excluding value of inward supplies on which tax is payable by a person on reverse charge basis)
  • Exempt supplies
  • Exports of goods or services or both
  • Inter – state supplies of persons having same PAN

To be computed on ALL India basis and excludes –

  • Central tax
  • State tax
  • Union territory tax
  • Integrated tax
  • Cess

The reason it is important to understand about what aggregate turnover means is to decide whether

  • a supplier is eligible to avail the benefit of exemption threshold of Rs. 20 lakhs [Rs. 10 lakhs in case of special category states except J&K].
  • Determining the threshold limit for composition levy.

So now that we know the importance of calculating ‘aggregate turnover’, let us understand the definition in detail.

  • Inward supplies on which tax is paid by recipient of services under reverse charge mechanism (RCM) does not form part of ‘aggregate turnover’. However, value of such supplies would be part of ‘aggregate turnover’ of the supplier of such services.
  • Aggregate turnover is different from turnover in a state. Aggregate turnover is used for determining threshold limit for registration as well as composition levy. However composition levy is calculated on the basis of turnover of the state.
  • A trader dealing only in exempted goods or where turnover is below 20 lakhs (ONLY INTRA-STATE) in the financial year is not required to register under GST.
  • Value of goods after completion of job work is not included in the turnover of the job worker. It will be treated as supply of goods by the principal and will accordingly be includible in the turnover of the principal.
  • If a person having branches in different states across India and ine branch is in any special category states, the threshold limit for GST registration will be reduces to Rs. 10 lakh.
  • An entity engaged in supplying oil as well as petrol. Supply of petrol is non GST supply. Turnover of both taxable and non taxable supplies is considered to determine whether entity is liable for registration.

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