calculation of turnover

[ShankarDurgaVaraPrasad P]

good afternoon to one and all,

i have one doubt. if i want to start a service oriented firm in two states, ex: head office in telangana and branch in andhra pradesh,then for the purpose of 20 lakhs limit for registration ,the two states turnover clubbed or treat separately?

thanks in advance

[KASTURI SETHI]

Dear Querist,

Turnover of both will be clubbed inasmuch as PAN is SAME.

See the definition of 'aggregate turnover' .

As per Section 2 (6) “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;

[ShankarDurgaVaraPrasad P]

thank u sir

[ABHISHEK TRIPATHI]

Dear Sir,

The states turnover will only be clubbed when the person makes inter-state supplies and all same PAN persons making interstate supply will be clubbed. For instance, AP Office makes 10 lakh interstate supply and Telangana Office made 10 lakh interstate supply, then in such a situation, it will be clubbed. And the aggregate turnover will be 10+10 = 20

Another instance,

AP Office makes 10 lakh intrastate supply and Telangana Office makes 10 lakh intrastate supply. Then your AT will not 10 + 10 lakhs as it will be 10 for AP Office and 10 for Telangana Office, not clubbing because it's only intra state supply.

Clubbing of two states supply (person having the same PAN) is in the case of interstate supply

Section 22(1) - Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:

―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;

[Ganeshan Kalyani]

Minute point highlighted by Sri Abhishek Sir. Thanks

[Shilpi Jain]

20 lakes has to be seen on PAN Level in which the branch transfers between 2 gstin will also have to be included

AI Summary

Service Firm's Turnover Across States Must Be Combined for GST Registration If Operating Under Same PAN A user inquired about whether the turnover of a service-oriented firm operating in two states, Telangana and Andhra Pradesh, should be combined or treated separately for the purpose of the 20 lakh GST registration limit. Respondents clarified that the turnover should be clubbed if the firm operates under the same Permanent Account Number (PAN). Aggregate turnover includes all taxable supplies, exempt supplies, exports, and inter-state supplies for entities with the same PAN. However, only inter-state supplies are clubbed for turnover calculation, while intra-state supplies are treated separately. The threshold for mandatory GST registration is based on aggregate turnover exceeding 20 lakh rupees.