Central Board of Excise & Customs (CBEC) has come up with explanations for Aggregate Turnover in GST. With 7 detailed explanations, the CBEC has ensured a defined clarification over the subject.
Here are 7 things you should know about Aggregate Turnover in GST according to CBEC –
1. In general terms, turnover is the total volume of the business. The term ‘aggregate turnover’ has been defined in GST as under:
“Aggregate turnover” 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, exports of goods or services or both and inter-state supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes Central GST, State GST, Union Territory GST, integrated GST and compensation cess.
2. The exemption threshold for a taxpayer under GST is Rs.20 Lakhs (Rs. 10 Lakhs in case of special category States except Jammu & Kashmir). The aggregate turnover plays a crucial role in deciding the eligibility of a supplier to avail the benefit of the aforementioned exemption. Besides, it also plays a main role in determining the threshold limit of composition levy.
3. Although, the inward supplies on which the recipient is made to pay tax (which is called Reverse Charge Mechanism) does not form the part of aggregate turnover, certain supplies like services received from outside India, Goods Transport Agency services, where the recipient of service is made to pay the tax, forms the part of aggregate turnover of recipient of such supplies. It may be noted that the value of such supplies would continue to be part of the ‘aggregate turnover’ of the supplier of such supplies.
4. Aggregate turnover does not include the second element of value. That element is state GST, central GST, union territory GST, integrated GST and compensation cess levied under GST.
5. ‘Aggregate Turnover’ would include the value of exported goods/services, exempt goods/services, inter-state supplies between distinct persons having same PAN.
6. ‘Aggregate Turnover’ is calculated by adding up the value of activities carried out on all India basis.
7. The ‘Aggregate Turnover’ is different from the turnover in the State. The ‘Aggregate Turnover’ decides the threshold limit for registration along with eligibility for Composition Scheme. However, the composition levy would be calculated on the basis turnover in the State.