Aggregate Turnover In GST- How to Calculate Threshold

Under GST, Registration, Annual Return, and Audit are 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

👉 The 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.

👉 The total value of all export of goods or services 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-

  1. Goods returned to the principal.
  2. Goods sent to another job worker on the instruction of the principal.
  3. Goods directly supplied from the job worker’s premises (by the principal), it would be included in the aggregate turnover of the principal.

👉 The transaction is neither supply of goods nor service.

Therefore, turnover would also include the following-

👉 All taxable supplies are other than supplies on which reverse charge is applicable.

👉 Supplies between distinct entities of the same business.

👉 Inter-State supplies.

👉 Goods supplied to Job workers on a principal to principal basis.

👉 Export or zero-rated supplies.

👉 Goods are received from the job worker on a principal to principal basis.

👉 Supplies of agents/Job workers on behalf of the principal.

👉 Exempted supplies under GST: Diesel, Petrol, Liquor, etc.

Also Read- Difference between GSTR 4 and GSTR 9A for composition dealer

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.

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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.

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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)

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