“Aggregate turnover” one definition which is used in many important places under GST act. For eg: while calculating turnover for liability to register under GST act and also while getting the accounts audited.
A person supplying goods needs to register under GST act if his aggregate turnover exceeds Rs. 40 lakh or in case of supplier of service if his aggregate turnover exceeds Rs. 20 lakh in a financial year with regard to section 24 and other notification.
As per section 35(5) of the CGST act: If the annual turnover of a registered taxpayer is more than Rs. 2 crores in a financial year, he is required to get his accounts audited by a Chartered Accountant or Cost Accountant every year.
In all the above sections the important word is aggregate turnover so let’s understand what is aggregate turnover and what does it include:
As per section 2(6) of CGST act 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 tax, State tax, Union territory tax, integrated tax and cess.
Thus it includes:
- Taxable supplies.
- Exempt supplies.
- Export supplies (Zero rated supplies)
- Inter state supplies to person having same PAN (i.e. branch transfer)
Thus it includes everything except input goods/ services on which tax paid on reverse charge basis and non-GST supplies.
Note: If during a year you have just made inter branch sales exceeding Rs. 2 crore then also you are liable to get your accounts audited.
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Does aggregate turnover include Intra-State (within the same state and same city) supplies to a person having the same PAN?
As per definition, it includes only inter-state supplies to a person having the same PAN. Does that mean it doesn’t include intra-state supply to a person having the same PAN?
Specifically its not been included in section of aggregate turnover but it includes taxable supply which we need to read with section 25(4) and Para 2 of section Schedule I. Because for each GST number the GST supply would be different and each officer would deal with you accordingly.
Regards,
Taxontips.com