Aggregate Turnover

What it means

Aggregate turnover is the total value of everything a business supplies across India under one PAN in a financial year. It is one of the most important numbers in GST because many rules depend on it: whether you must register, whether you can opt for the composition scheme, whether you can file quarterly, and whether e-invoicing applies to you.

How it works

Add up the following for all GST registrations under the same PAN, in every state:

• Taxable supplies, both within the state and to other states

• Exempt supplies, such as fresh vegetables or certain healthcare services. Non-taxable items like petrol and alcohol for human consumption are counted here too.

• Exports and other zero-rated supplies

• Supplies between your own branches in different states, since each GST registration counts as a separate person

Leave out CGST, SGST, IGST and cess, and the value of inward supplies on which you pay tax under reverse charge.

Common thresholds that depend on aggregate turnover:

• GST registration: ₹40 lakh for suppliers of only goods in most states, ₹20 lakh for services (lower limits in some special category states)

• Composition scheme: up to ₹1.5 crore (₹75 lakh in some special category states)

• QRMP scheme for quarterly returns: up to ₹5 crore

• E-invoicing: above ₹5 crore in any year from 2017-18 onwards

Example

Mehul runs a grocery wholesale business in Gujarat. For the year he has:

• Taxable sales of packaged foods: ₹32,00,000

• Sales of exempt fresh fruit and vegetables: ₹6,00,000

• Exports to Dubai: ₹4,00,000

• GST collected on taxable sales: ₹1,60,000

Aggregate turnover = ₹32,00,000 + ₹6,00,000 + ₹4,00,000 = ₹42,00,000. The GST of ₹1,60,000 is excluded. Since he supplies only goods and the total is above ₹40 lakh, Mehul must register for GST, even though his taxable sales alone are only ₹32 lakh.

Key points to remember

• A common mistake is counting only taxable sales. Exempt sales and exports are included too.

• It is calculated PAN-wise, so turnover from all your states is combined.

• Apply for registration within 30 days of crossing the threshold.

• If you supply only exempt goods or services, you do not need to register, whatever your turnover.

• Inter-state taxable sales generally need registration from the first rupee, regardless of turnover. There are limited exceptions for some service providers and online sellers.