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How-to-calculate-Aggregate-Turnover-under-GST

 

How to calculate Aggregate Turnover under GST

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See related posts : How to file GSTR-1
 
Introduction-

GST registration is mandatory, If an entity has an "Aggregate turnover"* of more than Rs. 20 lakh for all states has increased to Rs. 40 lakh in 32nd GST Council meeting at New Delhi on 10th January 2019 OR In case of special category states i.e. NE and hill states, the annual "Aggregate turnover"* threshold for GST registration is Rs. 10 lakh has increased to Rs. 20 lakh in 32nd GST Council meeting at New Delhi on 10th January 2019.

*Aggregate turnover means the aggregate value includes the following supplies of goods & services of persons having the same Permanent Account Number, across all his business entities in India. It includes the following-

-All taxable supplies of goods & services

-Exempted supplies of goods & services

-Exports of goods or services or both

-Inter-State supplies

 

*Aggregate Turnover does not includes the following-

  • Tax paid i.e. Central tax, State tax, Union territory tax, integrated tax and cess etc.
  • Tax paid under RCM on inward supply. Under RCM (Reverse charge mechanism) does not form part of aggregate turnover. The law stipulates that certain supplies like (Goods transport agency, Services received from outside India etc.) where the recipient is of services is made to pay the tax instead of the supplier of service. The value of such supplies on which tax is paid on reverse charge basis would not form part of “Aggregate turnover
  • Value of inward supplies of goods and services
  • Value of Non-taxable supplies of goods or services such as Alcohol, Petrol etc.
 

Brief Summary-

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 Permanent Account Number(PAN) across all his business entities in India.
 

Example 1- (Other than special category states)

Mr. Ram is an agriculturist with an annual turnover of Rs. 65.00 lakh of agricultural produce. His supply of woven bags is Rs. 2.50 lakh. Whether he is required to register under GST or not?

Answer-

Mr. Ram has an annual turnover of Rs. 67.50 lakhs (i.e. Rs. 65.00 lakhs from agriculture produce + Rs. 2.50 lakh from supply of woven bags). Mr. Ram has to register himself under GST because the “Aggregate Turnover” exceeds the threshold limit of Rs. 20.00 lakh40.00 lakh during the year.  While his agricultural income is tax exempted under GST but for calculation of aggregate turnover all exempted supplies also considered.  

 

** The exemption limit is Rs. 10.00 lakh20.00 lakh in case of special category states (includes Jammu & Kashmir) which are described as under-

  • Arunachal Pradesh
  • Assam
  • Himachal Pradesh
  • Manipur
  • Meghalaya
  • Mizoram
  • Nagaland
  • Sikkim
  • Tripura
  • Uttrakhand

 

Example 2- (Under special category states)

Mr. Ram is an agriculturist with an annual turnover of Rs. 20.00 lakh of agricultural produce. His supply of woven bags is Rs. 2.00 lakh. Whether he is required to register under GST or not?

Answer-

Mr. Ram has an annual turnover of Rs. 22.00 lakhs (i.e. Rs. 20.00 lakhs from agriculture produce + Rs. 2.00 lakh from supply of woven bags). Mr. Ram has to register himself under GST because the “Aggregate Turnover” exceeds the threshold limit of Rs. 20.00 lakh (under special category states) during the year.  While his agricultural income is tax exempted under GST but for calculation of aggregate turnover all exempted supplies also considered. 

 



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