TaxTMI 
TaxTMI 
TaxTMI 
Scope of ‘aggregate turnover’ [Section 2(6)]
As per section 2(6) of the Model GST Act, 'aggregate turnover' shall be total of the following amounts or sums in relation to a person carrying on business, i.e., aggregate of the following–
- Value of all taxable supplies of goods and services
- Value of exempt supplies of goods and services
- Value of all goods and services exported
- Value of inter-State supplies
However, aforementioned value of aggregate turnover would exclude taxes, if any, charged under the CGST Act, IGST Act and SGST Act. It will also not include the value of inward supply on which tax is charged on reverse charge basis and value of inward supplies.
For the purpose aggregate turnover, turnover shall be computed and aggregated for a person having the same Permanent Account Number (PAN) of Income Tax, taken as a whole on an all India basis.
Accordingly, ‘aggregate turnover’ means ‘Value of all (taxable supplies + Exempt supplies + Exports + inter-State supplies) – (Taxes + Value of inward supplies + Value of inward supplies taxable under reverse charge) of a person having the same PAN.
This can be understood with the following example:
Star Paper Private Limited has the following details for the year 2016-17:
- Intra-state supplies ₹ 4.00 lakhs.
- Inter-state supplies ₹ 5.00 lakhs.
- Non-taxable supplies ₹ 2.00 lakhs
- Value of exports ₹ 0.70 lakhs
- Exempt supplies ₹ 0.60 lakhs
- IGST/CGST/SGST paid ₹ 0.20 lakhs
- Aggregate turnover ₹ 4.00+5.00+0.7+0.6 = ₹ 10.30 lakhs.
As per revised model law, value of non-taxable supply shall not be considered while calculating aggregate turnover as it is not provided in definition of aggregate turnover.
Relevance of person having the same PAN
“Person having the same PAN” means all the business entities of a person across India having the same Permanent Account Number (PAN) in Income Tax. For example, if a person is having, say 10 branch offices in different parts of a country under a same PAN filing single income tax return, his turnover for all such offices shall be aggregated for the purpose of aggregate turnover under GST.
Exclusion from ‘aggregate turnover’
'Aggregate turnover' shall exclude the following sums –
- Taxes, if any, charged under the CGST Act, SGST Act and IGST Act.
- Value of inward supplies of goods and services on which tax is levied on reverse charge mechanism (RCM)
- Value of inward supplies of goods and services
Supplies made by job-worker on behalf of his principal
Job-work implies 'job work' undertaking any treatment or process by a person on goods belonging to another registered taxable person and the expression 'job worker' shall be construed accordingly. Anybody who undertakes job-work is called a job-worker.
Supply of goods by a registered job-worker, after completion of job-work shall be treated as the supply of goods by the 'principal' in terms of section 55 (i.e., Special Procedure for Removal of goods for Certain Purposes) of model GST Law. The value of such goods shall not be included in the aggregate turnover of the registered job worker.
Aggregate turnover under GST v. service taxation
Aggregate turnover under GST regime includes value of all taxable supplies, exempt supplies, export of goods and inter-State supplies excluding taxes and turnover under reverse charge and inward supplies.
While, in service tax, aggregate value means the sum total of value of taxable services charged in the first consecutive invoices issued during a financial year but does not include value charged in invoices issued towards such services which are exempt from whole of service tax leviable thereon under section 66B of the Finance Act, 1994 under any other notification. (Vide Notification No. 33/2012-ST dated 20.06.2012).
Value of inward supplies and aggregate turnover
Turnover means value of outward supplies of goods and services. The reference to inward supplies in the definition of Aggregate turnover has been given to exclude from aggregate turnover the value of inward supply included in the outward turnover.