Concept of Aggregate Turnover in GST - GST Ready Reckoner - GST

Aggregate Turnover Concept of Aggregate Turnover in GST Turnover, in common parlance, is the total volume of a business. The term aggregate turnover has been defined in GST law as under: Aggregate Turnover [ As per section 2(6) of CGST Act, 2017 ] Aggregate turnover is computed on all India basis for a person having same Permanent Account Number (PAN). It is sum of value of all outward supplies falling in the following four categories: Taxable supplies Exempt supplies Exports of goods or services or both Inter-state supplies. but excludes the value of inward supplies on which tax is payable by a person on reverse charge basis taxes including cess paid under GST law. CBEC vide Order No. 01/2017-Central Tax dated 13th October, 2017 has clarified that a person supplying any exempt services including services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount, shall not be ineligible for the composition scheme. In computing his aggregate turnover in order to determine his eligibility for composition scheme, value of supply of the exempt services including services by way of extending deposits, loans or advances shall not be taken into account. It is important to mention that as per section.2(47) of the CGST Act, the term exempt supplies includes non taxable supplies defined u/s 2(78) ; such as, specified petroleum goods and alcoholic liquor for human consumption. However, registered person, who is engaged in making any supply of goods which are non taxable(i.e. petroleum product alcoholic liquor for human consumption) under this act who is not eligible to opt for composition scheme. Turnover in state or Turnover in union territory Turnover in state or Turnover in union territory means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies made with in s state or union territory by a taxable person, export of goods or services or both, and interstate supplies of goods or services or both made from from the state or union but excludes CGST, SGST, UTGST,IGST and cess. Example of Aggregate turnover: llustration : XYZ Co., Mumbai is a manufacturer and is a registered supplier (under regular scheme). It furnishes the following details for the tax period ended on 31st March, 2019:- (i) Intra-State supply of goods (includes GST @ 18%) Rs. 59,00,000/- (ii) Goods exported (GST Nil) Rs. 60,00,000/- (iii) Inward supplies liable for reverse charge Rs. 7,00,000/- (iv) Transfer of goods to branch at Delhi (without GST) Rs. 40,00,000/- Compute the 'aggregate turnover under section 2(6) of the CGST Act, 2017 ? Answer : Computation of Aggregate turnover Particulars Turnover Intra-State supply of goods Rs.59,00,000 X 100 /118 [ Excludes CGST, SGST, IGST ] 50,00,000 Export Supplies [considered as equivalent to taxable supplies] 60,00,000 Inward supplies under reverse charge [ not to be included ] Nil Transfer of goods to branch / distinct person is categorized as supply under section 7 of the CGST Act. [No adjustment needed as GST is already excluded] 40,00,000 Aggregate turnover 1,50,00,000