Aggregate Turnover is one of the most crucial concepts under the Goods and Services Tax (GST) regime in India. It plays a vital role in determining eligibility for GST registration, composition scheme, threshold exemptions, and filing requirements. However, due to the involvement of multiple revenue streams and registration states, taxpayers often find it confusing to calculate aggregate turnover correctly.
In this blog, we will break down what aggregate turnover means, what components are included or excluded, and how it is calculated practically for compliance under GST.
What is Aggregate Turnover under GST?
According to Section 2(6) of the Central Goods and Services Tax (CGST) Act, 2017, aggregate turnover means: –
Aggregate turnover refers to the total value of all taxable supplies (excluding inward supplies liable to reverse charge), exempt supplies, exports of goods or services (or both), and inter-state supplies made by a person having the same PAN, calculated on an all-India basis. It does not include GST components like Central Tax, State Tax, Union Territory Tax, Integrated Tax, or Cess.
In simpler terms, aggregate turnover is the total value of all outward supplies made by a person (with the same PAN) across all states and union territories in India, even if the person is not registered under GST in each of those states.
Why is Aggregate Turnover Important?
- GST Registration Threshold: A person is required to register under GST if their aggregate turnover exceeds the prescribed limit:
- ₹20 lakhs for service providers (₹10 lakhs in special category states).
- ₹40 lakhs for goods suppliers (₹20 lakhs or ₹10 lakhs in some states).
- Eligibility for Composition Scheme: The scheme is available only to the taxpayers whose aggregate turnover does not exceed ₹1.5 crore in the previous financial year (₹75 lakhs in select states).
- Determining Filing Requirements: Turnover-based filing, such as quarterly returns under the QRMP scheme or mandatory e-invoicing, depends on aggregate turnover.
- Applicability of GST Audits or Annual Returns: Earlier, audits were based on turnover thresholds.
Components Included in Aggregate Turnover
Let’s understand what is included when calculating aggregate turnover under GST:
- Taxable Supplies: Includes all supplies that attract GST, whether made intra-state or inter-state.
- Exempt Supplies: Supplies that are exempt from GST under Section 11 of CGST or Section 6 of IGST Act are included.
- Exports (Zero-Rated Supplies): Exports of goods and/or services, which are considered zero-rated under GST, are included in aggregate turnover.
- Inter-State Branch Transfers: Inter-state supplies between branches of the same PAN (distinct persons) are included.
- Supplies Made on Behalf of Principals (Agent Supplies): If a person is acting as an agent, such supplies also form part of their aggregate turnover.
What is Excluded from Aggregate Turnover?
Equally important is knowing what not to include in aggregate turnover:
- GST Taxes (CGST, SGST, IGST, UTGST, Cess): Turnover must be calculated net of tax. Only the value of the supply should be included.
- Inward Supplies Under Reverse Charge: Purchases or expenses where the recipient pays tax under the reverse charge mechanism (RCM) are excluded.
- Non-GST Supplies: Supplies like alcohol for human consumption, petroleum crude, motor spirit, natural gas, aviation turbine fuel, etc., are non-GST items and excluded.
- Central/State/Union Territory/Compensation Cess Collected: Any GST compensation cess collected is also not to be included.
Step-by-Step Guide to Calculate Aggregate Turnover
Step 1: Identify All GSTINs Under One PAN
Aggregate turnover is PAN-based. So, if a business has registrations in multiple states, all those GSTINs must be considered.
Step 2: Collect Supply Data from All GSTINs
Prepare a consolidated summary from all branches or units, including:
- Taxable outward supplies.
- Exempt supplies.
- Export supplies.
- Inter-state branch transfers. (cross-GSTIN supplies)
Step 3: Sum the Value of Supplies
Add the value of all supplies across GSTINs. Ensure the values are exclusive of GST and Cess.
Step 4: Exclude Inward Supplies under RCM and Taxes
Remove any inward supplies on which reverse charge is applicable. Also, exclude GST and cess components.
Step 5: Arrive at Aggregate Turnover
The result is your aggregate turnover for the financial year.
Example of Aggregate Turnover Calculation
Let’s say ABC Enterprises has the following data for FY 2024-25:-
| Particulars | Amount (₹) |
| Taxable Supplies in Maharashtra | 40,00,000 |
| Exempt Supplies in Maharashtra | 5,00,000 |
| Exports (Services) from Karnataka | 15,00,000 |
| Inter-State Branch Transfer (MH to KA) | 10,00,000 |
| Inward Supplies under RCM | 2,00,000 |
| GST Collected | 12,60,000 |
Calculation: –
- Taxable Supplies = ₹40,00,000
- Exempt Supplies = ₹5,00,000
- Export Supplies = ₹15,00,000
- Inter-State Branch Transfer = ₹10,00,000
- Subtotal = ₹70,00,000
- Exclude Inward RCM = Not included
- Exclude GST Collected = ₹12,60,000 (already excluded in supply values)
Aggregate Turnover = ₹70,00,000
Common Mistakes to Avoid
- Including GST Amounts: Many taxpayers mistakenly include GST in their turnover figures, leading to inflated turnover.
- Ignoring Branch Transfers: Inter-state supply between branches of the same PAN must be included.
- Misclassification of Exempt or Non-GST Supplies: Ensure correct classification to avoid compliance errors.
- Calculating GSTIN-wise instead of PAN-wise: Aggregate turnover is not per registration but per PAN across India.
Conclusion
Accurately calculating aggregate turnover under GST is essential for every business to stay compliant with registration requirements, return filings, and scheme eligibility. Always ensure that you’re considering the correct components and excluding what the law mandates. It is advisable to keep updated with the latest GST circulars and clarifications or consult a tax professional for accurate compliance.
If you are a startup, small business, or growing enterprise and need help with GST registration online, GST return filing, or turnover assessment, feel free to connect with our expert legal and tax advisory team.
Let your compliance journey be simple, correct and worry-free.
FAQs
1. Is aggregate turnover calculated for each GSTIN or PAN level?
Aggregate turnover is calculated at the PAN level across all GST registrations in India.
2. Are exports included in aggregate turnover?
Yes. Exports of zero-rated supplies are included in aggregate turnover.
3. Should I include taxes like CGST and IGST in turnover?
No. Turnover must be exclusive of taxes such as CGST, SGST, IGST, and cess.
4. Are reverse charge inward supplies counted?
No. Inward supplies on which tax is paid under reverse charge are excluded.
5. What about non-GST supplies like petrol and alcohol?
These are not covered under GST and hence excluded from aggregate turnover.
