Are you curious to know what is aggregate turnover? You have come to the right place as I am going to tell you everything about aggregate turnover in a very simple explanation. Without further discussion let’s begin to know what is aggregate turnover?
If you’re a business owner, it’s important to understand what is meant by the term “aggregate turnover.” This is a crucial concept for any business, as it can determine whether or not you need to register for Goods and Services Tax (GST). In this blog, we’ll explore what is meant by aggregate turnover, its significance, and how it’s calculated.
What Is Aggregate Turnover?
Aggregate turnover refers to the total value of all taxable supplies made by a registered business in a financial year. This includes all sales of goods and services, both within the state and across state borders, as well as any exempt supplies and zero-rated supplies. It also includes any inward supplies on which reverse charge is applicable. Aggregate turnover does not include any taxes charged under GST, as these are considered to be pass-through costs.
Significance Of Aggregate Turnover:
Aggregate turnover is a significant concept in GST, as it determines whether or not a business is required to register for GST. As per the GST Act, a business whose aggregate turnover in a financial year exceeds the threshold limit of Rs. 20 lakhs (Rs. 10 lakhs for some special category states) must register for GST. Additionally, businesses engaged in inter-state supplies, irrespective of their turnover, are required to register for GST.
How Is Aggregate Turnover Calculated?
Calculating aggregate turnover is a relatively straightforward process. It involves adding up the value of all taxable supplies made by a business in a financial year. This includes the value of all goods and services sold within the state, as well as any inter-state supplies, exempt supplies, zero-rated supplies, and inward supplies on which reverse charge is applicable. The value of all taxes charged under GST is excluded from the calculation, as these are considered to be pass-through costs.
Aggregate turnover is a crucial concept for any business operating in India. It determines whether or not a business needs to register for GST, and understanding how it’s calculated is important for ensuring compliance with GST laws. By keeping track of your taxable supplies and calculating your aggregate turnover regularly, you can ensure that your business stays compliant with GST laws and avoid any penalties for non-compliance.
How To Calculate Aggregate Turnover?
The Aggregate Turnover of the year shall be the sum of the following:
- Value of all taxable supplies.
- Value of all exempt supplies.
- Value of export supplies.
- Value of inter-state supplies.
- Turnover of all entities of a person under the same PAN.
What Is The Aggregate Turnover For Gst Registration?
Salary Account. HOW TO CALCULATE AGGREGATE TURNOVER FOR GST REGISTRATION? A business whose aggregate turnover in a financial year exceeds Rs 20 lakhs has to mandatorily register under Goods and Services Tax. This limit is set at Rs 10 lakhs for North Eastern and hilly states flagged as special category states.
What Is The Turnover For Gst Business?
In India, businesses with an annual turnover of more than Rs. 40 lakhs (Rs. 20 lakhs for businesses in some special category states) are required to register for GST.
What Is The Difference Between Turnover And Aggregate Turnover?
Aggregate Turnover vs Turnover in a State
The aggregate turnover is calculated for a single PAN on an India basis whereas turnover in a state is the statewide calculation of turnover for a PAN.
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