How to calculate aggregate turnover for GST registration

In this article, we will be discussing the meaning of aggregate turnover as per GST law. Before getting into the definition and things that are included or excluded, let us discuss why aggregate turnover is so important.

As per the GST law, a taxable person should obtain registration under GST law in every State from where he makes a taxable supply of goods or services or both.

If your case or supply is coming under compulsory registration criteria then irrespective of your aggregate turnover, you are required to get registration under GST law. Or else, you need to go through the aggregate turnover criteria as per GST law to know whether your business is required to get registered or not.

gst aggregate turnover

Aggregate turnover criteria for GST registration

As per GST law, every supplier whose aggregate turnover in a financial year exceeds 20 Lakhs rupees (in the case of special category States the limit is 10 Lakhs rupees) shall be liable to be registered in the State or Union territory, from where he makes a taxable supply of goods or services or both.

Special category states as specified in sub-clause (g) of clause (4) of Article 279A of the Constitution are Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

Table showing aggregate turnover criteria for GST registration

Places where taxable supplies of goods and services takes place GST registration applicable when aggregate turnover exceeds

In the case of Special Category States

(Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand)

Rs. 10 Lakh
In the casOther than special category states

(Example: Karnataka, Andhra Pradesh, Kerala, Maharashtra, Delhi, Odisha, Bihar, Uttar Pradesh, Punjab, Haryana, Gujarat, Madhya Pradesh, Rajasthan, West Bengal, Tamilnadu etc.. )

Rs. 20 Lakh

Now we know why aggregate turnover criteria are so important.

Let us look into the definition of aggregate turnover under GST law to know what are the things included in it or excluded out of it.

What is Aggregate Turnover under GST Law

As per GST law, aggregate turnover includes all taxable supplies, exempt supplies, export of goods or services or both and inter-state supplies of a person having the same PAN, to be computed on all India basis and excludes CGST/SGST, IGST, UGGST and cess.

This means, for calculating the above threshold limit, the aggregate turnover shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals.

Please remember that the aggregate turnover criteria have to be determined based on Permanent Account Number (PAN). This means if the person has 4 branches in different states, turnover of all branches will be considered to calculate aggregate turnover as it’s to be calculated based on Permanent Account Number (PAN) of the person issued by the tax department.

However, Aggregate turnover does not include the value of inward supplies on which tax is payable on reverse charge basis.

In the case of a registered job worker, the supply of goods, after completion of job-work, shall be treated as the supply of goods by the principal, and the value of such goods shall not be included in the aggregate turnover of the registered job worker.

This means if the Job worker is registered then only the supply made by him on behalf of his principal shall not be considered for computing his aggregate turnover.

An example calculating aggregate turnover:-

Let us understand the calculation of aggregate turnover with an illustration.

XYZ private Ltd. is a manufacturing unit in Chennai, Tamilnadu. They also have service units located in Coimbatore and Delhi. Additional details are furnished in the table below:

Business Unit of Location PAN Number Turnover (Rs)
XYZ private Ltd. Chennai AAACS1242M 15 Lakhs
XYZ private Ltd. Coimbatore AAACS1242M 2 Lakhs
XYZ private Ltd. Delhi AAACS1242M 5 Lakhs

As per the example,

In the case of XYZ private limited, turnover of all the 3 units located in Chennai, Coimbatore and Delhi will be added together to consider whether XYZ is liable to register for GST or not. Therefore, the aggregate turnover will be Rs 22 Lakh (5 Lakh + 2 Lakh + 15 Lakh) and are required to get registered under GST.