Calculate Aggregate Turnover under GST

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Sakshi Shah

Aggregate Turnover
Composition Scheme
GST
GST Registration

Aggregate Turnover means the total value of sales of a GST registered business having the same PAN and calculated on an all India basis. Under GST, you can calculate the aggregate turnover for the following purpose:

Aggregate Turnover – Determine eligibility for GST Registration

If the Aggregate Turnover of the business exceeds the threshold limit as prescribed in the GST Act, the business must compulsorily register under GST. Following the revised threshold limit for GST Registration:

Sale of Goods
Sale of Services
StateUp to 31/03/201901/02/2019 to 31/03/2019From 01/04/2019
Manipur, Mizoram, Nagaland, Tripura10 lacs10 lacs10 lacs
Uttarakhand, Assam, Meghalaya, Sikkim, Arunachal Pradesh10 lacs20 lacs20 lacs
Himachal Pradesh10 lacs20 lacs40 lacs
Jammu and Kashmir20 lacs20 lacs40 lacs
Puducherry, Telangana20 lacs20 lacs20 lacs
Other States20 lacs20 lacs40 lacs
StateUp to 31/03/201901/02/2019 to 31/03/2019From 01/04/2019
Manipur, Mizoram, Nagaland, Tripura10 lacs10 lacs10 lacs
Uttarakhand, Assam, Meghalaya, Sikkim, Arunachal Pradesh, Himachal Pradesh10 lacs20 lacs20 lacs
Other States20 lacs20 lacs20 lacs
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Aggregate Turnover – 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 (Rs.75 lacs for special category states), 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 on GST Portal. 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?
Read about registration, returns, GST rate under Composition Scheme
Read More
What is Composition Scheme under GST?
Read about registration, returns, GST rate under Composition Scheme
Read More

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. Also, 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 19-20 are:

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 goods Rs. 15,00,000
Exempt goods Rs. 10,00,000
Export of goods Rs.   5,00,000
Total Turnover Rs. 30,00,000

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.

FAQs

What is the purpose of calculating aggregate turnover in GST?

Under GST, the aggregate turnover is required to be calculated for the following purpose:
1. Determine eligibility for GST Registration
2. Determine eligibility to avail benefit of Composition Scheme

What does aggregate turnover of a business in GST consists of?

Aggregate Turnover of a business is the total value of:
1. Taxable Sales
2. Exempt Sales
3. Export of goods or services
4. Inter-State Sales

The aggregate turnover of business in Gujarat is Rs. 30 lacs. The business makes an inter-state supply of goods to Maharashtra. Is GST Registration mandatory?

The aggregate turnover does not cross the threshold limit of Rs. 40 lacs for GST Registration in Gujarat. However, a business that makes the inter-state supply of goods must take compulsory registration under GST. Therefore, the taxpayer must apply for GST Registration since he/she is engaged in inter-state sales.

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