Under GST, Registration, Annual Return, and Audit is based on the turnover of the assessee. Here turnover refers to “Aggregate Turnover”, which is defined in section 2(6) of the CGST Act, 2017. In this post, we will discuss the meaning of “Aggregate Turnover in GST”.
What is Aggregate Turnover In GST
As per the GST law, “Aggregate Turnover” means the aggregate value of all taxable supplies (excluding the value of all inward supplies on which tax is payable by a person on a reverse charge basis), exempt supplies, the export of goods and services, or both and inter-state supplies of persons having the same permanent account number (PAN No.), to be computed on all India basis but does not include Central Tax, State-Tax, Union Territory Tax, Integrated Tax, and cess also.
In simple words, the “Aggregate Turnover” can be defined as under-
Inclusion in Aggregate Turnover
👉 Total value of all taxable supplies of goods and services.
👉 Total Value of all Inter State Supplies.
👉 Total Value of all exempt supplies of goods and services.
👉 Total value of all export of goods or service or both.
Exclusion from Aggregate Turnover
The following will not include while calculating Aggregate Turnover In GST–
👉 The value of all inward supplies on which tax is payable by a person on a reverse charge basis.
👉 Taxes and cess with respect to CGST, SGST and IGST Act.
👉 Goods w.r.t Job Work, which cover-
- Goods returned to the principal.
- Goods sent to another job worker on the instruction of the principal.
- Goods directly supplied from the job worker’s premises (by the principal), it would be included in the aggregate turnover of the principal.
👉 Transaction which is neither supply of goods nor service.
Therefore, turnover would also include the following-
👉 All taxable supplies other than supplies on which reverse charge is applicable.
👉 Supplies between distinct entities of same business.
👉 Inter-State supplies.
👉 Goods supplied to Job worker on principal to principal basis.
👉 Export or zero rated supplies.
👉 Goods received from the job worker on principal to principal basis.
👉 Supplies of agents/Job worker on behalf of the principal.
👉 Exempted supplies under GST: like Diesel, Petrol, Liquor etc.
Meaning of PAN India in GST
The purchase and sale that took place in different states by a single person using their Permanent Account Number (PAN), will be taken cumulatively to consider the total turnover of an entity or person. With respect to, the GST registration threshold limit as well.
Therefore, it means that GST registration, needs to be taken state-wise but it is included under the same PAN, as GST is a PAN India mechanism and not a state-wise tax levy system.
Difference between Aggregate Turnover and Turnover in a State
The aggregate turnover is different from a turnover in a state. The former is used for determining the threshold limit for GST registration as well as eligibility for the composition scheme. However, the composition levy would be calculated on the basis of turnover in the state.
Join our Social Community
Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.
Feedback/Suggestion- Hope you all find it useful, please give your valuable feedback & let us know if there is an error. Thanks in Advance
Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)