How to Calculate Aggregate Turnover for GST

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How to Calculate Aggregate Turnover for GST

Aggregate turnover is an important term that determines GST registration requirement. Turnover, in common parlance, means the value of a business over a period of time. Aggregate turnover in GST can be described as the taxable value of supplies of goods and services, exempt supplies of goods and services, the export of goods and services and inter-state supplies. Hence, accumulated turnover for GST includes supplies of goods or services, supplies exempt from GST and exports.

Purpose of Aggregate Turnover

The basic pre-requisite for registration in GST is the aggregate turnover. As per GST law, any entity with an annual turnover of above of Rs.20 lakh can opt-out of registering GST. For special category states excluding the State of Jammu and Kashmir entities with an annual turnover of above of Rs.10 lakh can opt-out of registering GST. The GST shall calculate the accumulated turnover by taking together the value in respect of the activities carried by all the entities of the concerned person on a pan-India basis.

Special Category States

Eleven states are conferred with the status of special category, as prescribed by the Government. These are:

  • Arunachal Pradesh
  • Assam
  • Jammu and Kashmir(Fully exempted)
  • Manipur
  • Mehalaya
  • Mizoram
  • Nagaland
  • Sikkim
  • Tripura
  • Himachal Pradesh
  • Uttarakhand

How to Calculate Aggregate Turnover?

Aggregate turnover can be calculated as follows:

Value of all (taxable supplies+Exempt supplies+Exports+Inter-state supplies) – (Taxes+Value of inward supplies+Value  of supplies taxable under reverse charge + Value of non-taxable supplies) of a person having the same PAN(Permanent Account Number) across all his business entities in India.

Which is not inclusive?

The below-given charges must be excluded while calculating accumulated turnover:

  • Taxes with respect to CGST, SGST or IGST Acts
  • Value of taxes payable on reverse charge mechanism
  • Value of inward supplies of goods and services
  • Value of Non-taxable supplies of goods or services like Alcohol, Petrol etc.

Difference between Aggregate Turnover and Turnover in a State

Aggregate turnover helps in calculating the threshold limit and composition scheme, while the turnover of a state is used in calculating Composition levy.

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