Aggregate Turnover under GST

Aggregate Turnover under GST

Aggregate turnover is defined under Section 2(6) of CGST Act 2017 as - "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;

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Now let us understand in detail about the aggregate turnover under the GST provisions. Annual aggregate turnover is the total turnover computed for the complete fiscal year, from April of one year to March of the next year. In other terms, it is the sum of the following values for the entire turnover measured at the PAN level (all GSTINs combined):

 

-         Value of taxable sales

-         Value of exempt sales

-         Export of Goods and services

-       Interstate stock transfers or supplies between different people under the same PAN or supplies made by the company to its sister company under the same PAN.

 

The overall volume of a firm is referred to as turnover in common terminology. The definition of "aggregate turnover" in the GST law is as follows: "Aggregate turnover" means the total value of all taxable supplies (excluding the value of inward supplies on which a person is required to pay tax on a reverse charge basis), exempt supplies, exports of goods or services or both, and inter-State supplies of individuals with the same Permanent Account Number, to be calculated on an all-India basis but excludes central tax, state tax, union territory tax, integrated tax, and other taxes.

 

The total turnover is a key factor in evaluating a supplier's ability to get the exemption threshold of Rs. 20 lakhs (Rs. 10 lakhs in the case of special category States except J & K) and in calculating the composition levy level. To better comprehend the term, let's break it down into its component pieces. A few of the definition's terms require some further clarification.

 

It should be noted that the "aggregate turnover" does not include the inward supplies for which the receiver must pay tax under the Reverse Charge Mechanism (RCM). The recipient of a service must pay the tax on a number of products, including those provided by a goods transport agency and those obtained from outside India, according to the legislation. The amount of such goods for which tax is paid would not be included in the receiver of such supplies' "aggregate turnover." However, the cost of such supplies would continue to be included in the supplier's "aggregate turnover."

 

The elements of central tax, state tax, union territory tax, and integrated tax and compensation cess are the second component of value that would not be included in the "aggregate turnover."

 

The "aggregate turnover" will include the value of exported goods and services, exempt products and services, and interstate deliveries between different people with the same PAN.

 

Last but not least, the value of the activities performed on an all-India basis is added together to determine the turnover.

 

The turnover in a State differs from turnover in the aggregate. The former is utilised to establish both the registration eligibility threshold and the composition scheme eligibility criterion. The composition levy, however, would be determined based on the State's turnover.