Aggregate Turnover in GST – Definition | Scope | Compliance

In GST, "aggregate turnover" refers to the total value of all taxable supplies (excluding the value of inward supplies on which tax is payable under reverse charge), exempt supplies, exports of goods or services, and inter-state supplies made by a person with the same Permanent Account Number (PAN), computed on an all-India basis. Aggregate turnover excludes GST and cess. This definition is critical for determining GST registration eligibility, annual return requirements, and compliance obligations.

Table of Contents

1. Introduction
2. Turnover was the Mystery under GST (for FYs 2017-18, 2018-19, 2019-20)
3. Illustrative List – Income in Financial Statement vs. Aggregate Turnover in GST

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1. Introduction

It may be noted that vide Notification No. 14/2024 – Central Tax, dated 10-7- 2024 registered person having Aggregate Turnover up to Rs. 2 Cr. in FY 2023-24 is exempted from furnishing annual return for and registered person having aggregate turnover upto Rs. 5 Cr. is exempted from furnishing reconciliation statement. Both of the requirements depend upon the quantum of aggregate turnover for FY 2023-24.

Further, GSTR-9C requires the reconciliation between Turnover as per audited financial statements and Turnover as declared in annual return (GSTR 9).

In GST law, we can observe number of terminologies pertaining to turnover being referred at different places. We have analysed all these terminologies in this article so that readers can clearly imagine the scope and implications of every wording along with the use of the same.

Note 1: “aggregate turnover” [Sec 2(6)] 

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 an India basis but

excludes GST and cess

Note 2: “turnover in State” or “turnover in Union territory” [Sec 2(112)] 

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 made within a State or Union territory by a taxable person,
• exports of goods or services or both, and
• Inter-state supplies of goods or services or both made from the State or Union territory by the said taxable person

excludes GST and cess

Note 3: Adjusted Total Turnover [Rule 89(4)(E)] 

Means the sum total of the value of—

• The turnover in a State or a Union territory, as defined u/s 2(112), excluding the turnover of services; and
• The turnover of zero-rated supply of services determined in terms of Rule 89(4)(D) and non-zero-rated supply of services,

excluding—

• The value of exempt supplies other than zero-rated supplies; and
• The turnover of supplies in respect of which refund is claimed u/r 89(4A)* or (4B)** or both, if any,

during the relevant period.

―Relevant period means the period for which the claim has been filed.

*Rule 89(4A): In the case of supplies received on which the supplier has availed the benefit of the Government of India, Ministry of Finance, Notification No. 48/2017-Central Tax dated, 18th October, 2017 published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i), vide number G.S.R. 1305(E), dated the 18th October, 2017, refund of input tax credit, availed in respect of other inputs or input services used in making zero-rated supply of goods or services or both, shall be granted.

**Rule 89(4B): In the case of supplies received on which the supplier has availed the benefit of the refund of input tax credit, availed in respect of inputs received under the prescribed notifications for export of goods and the input tax credit availed in respect of other inputs or input services to the extent used in making such export of goods, shall be granted.

Note 4: Annual Turnover: An undefined terminology: Earlier Notification No. 12/2017-CT, dated 28-6-2017 (Read point (b) given below) provided the HSN requirement on invoice based on the annual turnover. Also, there is a requirement to declare HSN wise annual turnover in table 12 of GSTR 1 (Read Instructions 16 and 17 of GSTR 1 in point (a) below). Kindly note that the term ‘annual turnover’ was not defined. Then Notification No. 12/2017-CT got amended vide N/N 78/2020-CT, dated 15-10-2020, w.e.f. 1 April 2021 (Read point (c) given below) which requires HSN requirement on invoice based on the aggregate turnover.

Readers may note that after removing the anomaly vide N/N 78/2020-CT, dated 15-10-2020 by using the aggregate turnover as a criteria for the purpose of determination of applicable number of digits of the HSN code in tax invoice, lawmakers have aligned table 12 of the GSTR-1.

Number of HSN Digits required based on the annual turnover vide Notification No. 12-2017-CT, dated 28-6-2017 (HSN requirement). This notification was applicable till 31-3-2020.

In pursuance of the first proviso to rule 46 of the CGST Rules, 2017, it is notified that a registered person having annual turnover in the preceding financial year as specified in column (2) of the Table below shall mention the digits of Harmonised System of Nomenclature (HSN) Codes, as specified in the corresponding entry in column (3) of the said Table, in a tax invoice issued by him under the said rules.

(a) After amendment made vide N/N 78/2020-CT, dated 15-10-2020, e.f. 1 April, 2021, HSN requirement on the tax invoice was made applicable based on the aggregate turnover.

In pursuance of the first proviso to rule 46 of the CGST Rules, 2017, it is notified that a registered person having annual turnover in the preceding financial year as specified in column (2) of the Table below shall mention the digits of Harmonised System of Nomenclature (HSN) Codes, as specified in the corresponding entry in column (3) of the said Table, in a tax invoice issued by him under the said rules.

2. Turnover was the Mystery under GST (for FYs 2017-18, 2018-19, 2019-20)

3. Illustrative List – Income in Financial Statement vs. Aggregate Turnover in GST

This list will not only help to determine the aggregate turnover as per section 2(6) but also, it will help the auditor in preparing Table 5 of reconciliation between turnover of audited financial statements as required under GSTR 9C.