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Understanding Aggregate Turnover in GST

Image Source: Taxguru

According to Section 2(6) of the CGST Act, 2017, ‘aggregate turnover’ means the total value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on a reverse charge basis), exempt supplies, exports of goods or services or both, and inter-State supplies of persons with the same Permanent Account Number, computed on an all-India basis but excluding the central tax, state tax, union territory tax, integrated tax, and cess.

Inclusion in Total Turnover

Taxable supply, including supply to a distinct person with the same PAN (Table 3.1(a) of GSTR-3B), is included in aggregate turnover in gst. Other taxes besides GST The value of outward supplies of goods and services on which the recipient must pay tax under the reverse charge mechanism. Goods provided to job workers on a principal-to-principle basis Goods received on a principal-to-principal basis from job workers The supplies made by an agent on behalf of all his principals would be included in the calculation of aggregate turnover.

Exclusion from Total Turnover

The value of inward supplies of goods and services on which the recipient is required to pay tax under the reverse charge mechanism is not included in aggregate turnover. However, the value of such supplies would continue to be included in the supplier of such services aggregate turnover. 

The total amount of central tax, state tax, union territory tax, integrated tax, and compensation cess. Goods supplied for job work or returned after job work as defined in Section 143 of the CGST Act, 2017. The following supplies would not be included in a job worker’s total turnover:

  1. Returned goods to the principal
  2. Goods sent to another job worker on the instruction of the principal
  3. Goods directly supplied by the principal from the job worker’s premises.

Transactions that do not involve the supply of goods or services, as defined in Schedule III of the CGST Act of 2017, as amended by the CGST (Amendment) Act of 2018. Meaning of Taxable Supply:- As per section 2(108) of CGST Act, 2017 “taxable supply” means a supply of goods or services or both which is leviable to tax under this Act. 

Exempt Supply is defined as: – According to section 2(47) of the CGST Act, 2017, “exempt supply” means the supply of any goods or services, or both, that attracts no tax or is wholly exempt under section 11 of the CGST Act, 2017 or section 6 of the Integrated Goods and Services Tax Act, and includes non-tax the able supply.The aggregate turnover differs from the turnover of a single state. The former is used to determine the GST registration threshold limit as well as eligibility for the Composition Scheme. To know more about GST schemes login into the mahagst portal, click here.

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