Home GST How to calculate Aggregate Turnover under GST.

How to calculate Aggregate Turnover under GST.


Hey friends, in this post, we will learn how to calculate the aggregate turnover under GST. And what supply should be consider while calculating Aggregate turnover under GST. Read our full article to find out which supplies are included in the threshold limit of GST. Also understand the meaning of each element of Aggregate turnover.

Every Supplier of goods or services or both is required to obtain registration in the state or the union territory from where he make the taxable supply. If his Aggregate turnover exceeds 20 lakhs in financial year.

Here, the threshold limit is 20 lakh for GST Registration. However, In Special Category State threshold limit of 20 lakh is reduced to 10 lakhs. Thus, Special Category State includes Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

Aggregate turnover

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 be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and Compensation Cess. [Section 2(6) of CGST Act].

How to calculate the aggregate turnover under GST for Registration are Summaries as bellows.

Outward supplies taxable under reveres charge would continue to be part of the Aggregate turnover of the supplier of such supplies.

Exempt supply

Exempt supply means supply of any goods or services or both which attracts (nil rate) of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and (includes non-taxable supply [Section 2(47) of CGST Act].

Exempt Supply can be summaries as below mentioned charts.

Reverse charge

Reverse charge means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under section 9(3)/9(4), or under section 5(3)/5(4) of the IGST Act. [Section 2(98) of CGST Act]. Taxes is pay by recipient.

Taxable supply

Taxable supply means a supply of goods and/or services which is chargeable to tax under CGST Act. [Section 2(108) of CGST Act]

Non-taxable supply

As per section Section 2(78) of CGST Act Non-taxable supply means a supply of goods or services or both which is not leviable to tax under CGST Act or under IGST Act.

Export of goods

Export of goods means taking goods out of India to a place outside India. Simply, selling of goods outside India.

To understand the meaning of Aggregate turnover, we take a one example. Which are as follows.

For Example, TaxInida ltd is engaged in supplying machine oil as well as petrol. Supply of petrol is not leviable to GST, but supply of machine is taxable.in order to determine whether TaxInida ltd is liable for registration, turnover of both the supplies non-taxable as well as taxable would be taken into account. And if same exceeds 20 lakhs then TaxIndia ltd is liable for registration.

Read More:Taxability of Gifts by employer to employee under GST.

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