Calculate aggregate turnover for GST

Author
By Sakshi Shah on March 25, 2019

Under GST, the aggregate turnover is required to be calculated for the following purpose:

  1. Determine eligibility for GST Registration
    • If the aggregate turnover of the business exceeds the threshold limit of Rs.40 lakhs for goods (Rs.20 lakhs for special category states) Rs.20 lakhs for services (Rs.10 lakhs for special category states), the business must compulsorily register under GST.
  2. Determine eligibility to avail benefit of Composition Scheme
    • If the aggregate turnover exceeds Rs.40 lakhs for goods (Rs.20 lakhs for special category states) but is up to Rs. 1.5 Cr, the business can register under the composition scheme to reduce compliances and pay tax at a specified rate of turnover. For services, if the aggregate turnover exceeds Rs.20 lakhs for services (Rs.10 lakhs for special category states) but is up to Rs. 50 lacs, the business can register under the composition scheme. In case of a composition scheme, the outward tax payable is calculated on the basis of turnover in the state.
What is Composition Scheme under GST?

How to calculate Aggregate Turnover under GST?

Aggregate Turnover of a business is the total value of:

  1. Taxable supplies
  2. Exempt supplies
  3. Export of goods or services
  4. Inter-state supplies

To calculate aggregate turnover, the following points must be considered:

  1. It excludes the value of inward supplies on which tax is payable by a person on a reverse charge basis.
  2. It excludes the taxes – CGST, SGST, UTGST, IGST and Compensation Cess
  3. It excludes the value of goods or services not covered under the GST Act
  4. It is the total value of turnover of all the business on the same PAN
  5. It is the total value of turnover of the business on all India basis

Example 1

Mr.X living in Mumbai is a trader of goods. On the same PAN, he has a branch in Delhi. The details of his sales (excluding GST) during the FY 18-19 are:

  • Taxable goods from Mumbai = Rs.15,00,000
  • Exempt goods from Delhi = Rs.10,00,000
  • Exports from Mumbai = Rs.20,00,000
  • Non-GST Goods from Delhi = Rs.1,00,000
  • Total GST on above sales is Rs.1,50,000

Determine whether he is liable to register under GST.

Solution

Calculation of  aggregate turnover:

Turnover of both Mumbai head office and Delhi branch should be combined since the business is on the same PAN

Taxable goodsRs.15,00,000
Exempt goodsRs.10,00,000
Export of goodsRs.20,00,000
Total TurnoverRs.17,00,000

Since the aggregate turnover is less than Rs.40 lacs for business situated in Maharashtra, registration under GST is not required.

Example 2:

If in Example 1, the head office was situated in Assam. Determine whether he is liable to register under GST.

Solution

Since the business is situated in a special category state i.e. Assam and the aggregate turnover exceeds Rs.20 lacs, he is liable to register under GST.