Turnover, in common parlance, is the total volume of a business. The term ‘aggregate turnover’ has been defined in GST law as under:
“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.
The aggregate turnover is a crucial parameter for deciding the eligibility of a supplier to avail the benefit of exemption threshold of Rs. 20 Lakhs [Rs. 10 Lakhs in case of special category States except J & K] and for determining the threshold limit for composition levy. Let us dissect the definition in small parts to understand the meaning clearly. There are certain terms used in the definition which need a bit of elaboration.
It may be noted that the inward supplies on which the recipient is required to pay tax under Reverse Charge Mechanism (RCM) does not form part of the ‘aggregate turnover’. The law stipulates certain supplies like, Goods Transport Agency services, services received from outside India, to name a few, where the recipient of service is made to pay the tax. The value of such supplies on which tax is paid, would not form part of the ‘aggregate turnover’ of recipient of such supplies. However, the value of such supplies would continue to be part of the ‘aggregate turnover’ of the supplier of such supplies.
The second element of value which would not be included in the ‘aggregate turnover’ is the element of central tax, state tax, union territory tax and integrated tax and compensation cess.
The value of exported goods/services, exempted goods/ services, inter-state supplies between distinct persons having same PAN would be added to ‘aggregate turnover’.
Last but not the least, such turnover is to be calculated by taking together the value in respect of the activities carried out on all-India basis.
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.
|1||Registration under GST Law|
|2||Cancellation of Registration in GST|
|3||The Meaning and Scope of Supply|
|4||Composite Supply and Mixed Supply|
|5||Time of Supply in GST|
|6||GST on advances received for future supplies|
|7||Concept of Aggregate Turnover in GST|
|8||Non-resident taxable person in GST|
|9||Casual taxable person in GST|
|10||Input Service Distributor in GST|
|11||Composition Levy Scheme in GST|
|12||Reverse Charge Mechanism in GST|
|13||Tax Invoice and other such instruments in GST|
|14||Accounts and Records in GST|
|15||Credit Note in GST|
|16||Debit Note in GST|
|17||Electronic Cash/Credit Ledgers and Liability Register in GST|
|18||Electronic Way Bill in GST|
|19||Input Tax Credit Mechanism in GST|
|20||Transition Provisions under GST|
|21||Integrated Goods and Services Tax Act|
|22||Compensation cess in GST|
|23||Imports in GST Regime|
|24||Zero Rating of Supplies in GST|
|25||Deemed Exports in GST|
|26||Pure Agent Concept in GST|
|27||Job Work under GST|
|28||Works Contract in GST|
|29||Valuation in GST|
|30||Margin Scheme in GST|
|31||Provisional Assessment in GST|
|32||Returns in GST|
|33||Statement of Outward Supplies (GSTR-1) in GST|
|34||Refunds under GST|
|35||Refund of Integrated Tax paid on account of zero rated supplies|
|36||Refund of unutilised Input Tax Credit (ITC)|
|37||Advance Ruling Mechanism in GST|
|38||Goods Transport Agency in GST|
|39||GST on Charitable and Religious Trusts|
|40||GST on Education Services|
|41||GST on Co-operative Housing Societies|
|42||Online Information Data Base Access and Retrieval (OIDAR) Services in GST|
|44||National Anti-Profiteering Authority in GST|
|45||Benefits of Goods and Services Tax (GST)|
|46||Special Audit in GST|
|47||TDS Mechanism under GST|
|48||TCS Mechanism under GST|
|49||Inspection, Search, Seizure and Arrest|
|50||Appeals and Review Mechanism under GST|
|51||Recovery of Tax|