Aggregate Turnover in GST meaning and analysis

Simply, Aggregate turnover is the total value of sales of your business in a financial year.

As per Section 2(6) of the CGST Act, 2017 :
“Aggregate turnover” means the aggregate value of all taxable supplies (excluding the 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 and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.

Analysis :

Aggregate turnover means, aggregate value of :

> Sale of all taxable supplies (Supplies means goods and services)

> Sale of all Exempt supplies

> Sale of all “Nil” rated supplies and “Non-GST” Supplies

> Export supplies (i.e. Zero rated Supply)

by a person having same PAN and it is computed on all-india basis

But it excludes,

> Value Inward Supplies liable to Reverse charge (RCM)

> taxes and Cess with respect to IGST, CGST, SGST, UTGST.

> Value of Inward Supplies of goods and services

How to calculate aggregate turnover :

Value of all outward (taxable supplies+ exempted supplies +Nil Rated supplies + Zero rated supplies +Non GST supplies ) – ( Taxes & Cess under GST Act + supplies under reverse charge ) of a person having the same PAN across all his business entities in India.

Aggregate turnover is relevant to detemine :

1. Threshold limit to obtain GST registration :

a). Threshold limit for persons exclusively supplying Goods is Rs. 40 Lakhs (Rs. 20 Lakhs for Special Category States).

b). Threshold limit for persons supplying services and “goods and services both” is Rs. 20 Lakhs (Rs. 10 Lakhs for Special Category States).

c). Threshold limit to opt for Composition scheme is Rs. 1.5 crore (Rs. 75 Lakhs for Special Category States).

2. Applicability of GST Audit : Registered persons with an aggregate turnover exceeding the prescribed limit of Rs 2 Crore during a financial year are liable for GST Audit.

3. For an Agent : the supplies made by him on behalf of all his principals would have to be considered while analyzing the threshold limits.

4. For Job-worker : following supplies effected on completion of job work would not be included in this aggregate turnover when working under Sec 143

a). Goods returned to the principal

b). Goods sent to another job worker on the instruction of the principal

c). Goods directly supplied from the job worker’s premises (by the principal); it would be included in the aggregate turnover to the principal.

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Tax Shastra is a knowledge-sharing platform for Individuals, Businesses & Professionals, solely managed and guided by Ratan Sarraf, where you can learn your taxes and finance easily.

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