What is the meaning of aggregate turnoverin GST

What is the meaning of aggregate turnoverin GST Under the GST regime, for any business if the aggregateturnoverin a financial year exceeds Rs 20 lakhsthen there is a mandatory requirement for getting the business registered underGoods and Services Tax. This limit is set at Rs 10 lakhs for North Eastern and hilly states flagged as special category states. The above requirement of registration under GST regime makes the concept of "aggregate turnover" of utmost importance. In this article we have tried to explain all about aggregate turnover and answered most of the questions viz. What is aggregate turnover, How aggregate turnover will be calculated , What will be included and what will be excluded for calculating aggregate turnoverHow to Calculate Aggregate Turnover for GST Registration, What do you understand by the term "turnover"

Turnover, in common parlance, is the total volume of abusiness.

What does aggregate turnover mean as per GST law The term aggregate turnover has been defined inGST law as under:

Aggregate turnover means the aggregate value of alltaxable supplies (excluding the value of inward supplies onwhich tax is payable by a person on reverse charge basis),exempt supplies, exports of goods or services or both andinter-State supplies of persons having the same PermanentAccount Number, to be computed on all India basis butexcludes central tax, State tax, Union territory tax, integratedtax and cess.

What is the annual turnover threshold limit for GST registration

The aggregate turnover is a crucial parameter for deciding whether GST registration is required or not. Any supplier of goods or services can avail the benefit of exemption (threshold limit) upto Rs. 20 lakhs [Rs. 10 Lakhs in case of specialcategory States except J & K].

Which states are considered as special category states as per GST Below is the list of states which are assigned special status and are called special category statesunder GST Law:

1. Arunachal Pradesh
2. Assam
3. Jammu & Kashmir
4. Manipur
5. Meghalaya
6. Mizoram
7. Nagaland
8. Sikkim
9. Tripura
10. Himachal Pradesh
11. Uttarakhand

The threshold limit of aggregate turnover for all the above states is Rs. 10 lakh. What is not included while calculating the aggregate turnover

• The value ofcentral tax, statetax, union territory tax and integrated tax and compensationcess will not be included in theaggregate turnover. (Note : Tax component should not be added to the figure of sales while you calculate the aggregate turnover).

 

• For a few inward supplies whererecipient is required to pay tax under Reverse Charge Mechanism. But that does not mean that such inward supplies become outward supply for the recepient. So, such inward supplies should not be added while calculating the aggregate turnover.
  • Note : The value of such outward supplies would continue to be partof the aggregate turnover of the supplier of such supplies.
  • For example :- Thelaw stipulates certain supplies like, Goods Transport Agencyservices (GTA), services received from outside India(import of services) where the recipient of service is made to pay the tax under RCM. Thevalue of such supplies on which tax is paid, would not formpart of the aggregate turnover of recipient of such supplies.

 

What is the meaning of aggregate turnoverin GST

What is to be included while calculating the aggregate turnover For calculating the aggregate turnover, value in respect of all the following supplies on allIndia basis shall be calculated

• Total value of supply from taxablegoods and/or services,
• Total value of supply from exports of goods and/or services,
• Total value of supply from exempted goods and/or services,
• Total value of supply from nil rated goods and/or services,
• Total value of supply from non-gst goods and/or services,
• Total value of inter state supplies between distinct personshavingsame PAN,

The aggregate turnover is different from turnover in a State. The former is used for determining the threshold limit for registration as well as eligibility for Composition Scheme. However, the composition levy would be calculated on the basis of turnover in the State.

• Eligibility for composition levy is based onturnover in the State and not aggregate turnover.

	Special category states	Other than special category states	GST returns
Exempt from registration	Upto 10 lakhs	Upto 20 lakhs	no returns
Composite taxpayer	Between 10 to 50 lakhs	Between 20 to 75 lakhs	1 returnquarterly
Normal taxpayer	Above 50 lakhs	Above 75 lakhs	3 returns monthly

• If your total turnover is upto 20 lakhs - No registration
• If yourtotal turnover is between 20 lakhs to 75 lakhs - You can opt for composition levy
• If your total turnover is above 75 lakhs you have to opt normal registration.