TaxTMI 
TaxTMI 
AGGREGATE TURNOVER UNDER REVISED GST LAW
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....GGREGATE TURNOVER UNDER REVISED GST LAW<br>By: - Pradeep Jain<br>Goods and Services Tax - GST<br>Dated:- 17-1-2017<br><br>DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN AGGREGATE TURNOVER UNDER REVISED GST LAW:- As we have discussed in earlier GST updates that registration under GST regime is required only if the turnover of the assessee crosses the threshold limit of Rs twenty lacs. Today in this....
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.... update we shall analyse the definition of "aggregate turnover" and changes brought in by Revised GST Draft Law. The definition of aggregate turnover under revised GST Draft Law is under section 2(6) which states that the aggregate turnover shall include all taxable supplies, exempt supplies, exports of goods and/or services and inter-State supplies of a person having the same PAN. The turnover ....
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....is to be computed on all India basis and it shall exclude taxes, charged under the CGST Act, SGST Act and the IGST Act. Further an explanation has been provided which states that payments made under reverse charge mechanism shall not be included in computation of aggregate turnover. The definition visibly states that while computing aggregate turnover the assessee shall have to include exempted ....
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....turnover also. By this government aims to bring major chunk of suppliers under ambit of tax as now even though the supplier supplies majorly exempted goods but a small portion of taxable goods and crosses the threshold, he shall have to get registered and pay taxes under GST. The major changes bought in this definition are:- * The removal of 'non taxable supplies' from the definition. Under ol....
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....d GST law, this was also included in the definition. It was thought to be a welcoming change on government's behalf as already the threshold limit given is too less and then including non taxable supplies along with exempted supplies further narrows the threshold limit. But the definition of "exempt supply" is given under Section 2(44) of revised GST Act which reads as follows:- "exemp....
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....t supply" means supply of any goods and/or services which are not taxable under this Act and includes such supply of goods and/or services which attract nil rate of tax or which may be exempt from tax under section 11 ; Hence the delight was short lived as non taxable supplies has been included in definition of exempted supplies and thus still remains the element of this definition indirectly. ....
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.... Interstate supplies have also been now explicitly mentioned and included in the computation which earlier was not direct part of the definition. But the earlier definition in old draft GST law does not included interstate supply. This means that the person was eligible of threshold exemption for interstate supply upto ₹ 20 Lakh. However, the schedule V of revised GST law says in point numbe....
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....r 6(i) that person making interstate supply without threshold exemption limit has to register himself. It implies that person has to pay the tax on interstate supply even on single transaction. When this provision in old GST law came then everyone was of the view that assessee has to pay the GST even for single transaction of interstate supply. After registration, he has to pay the tax on each s....
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....upply. This interpretation came from the concept of voluntary registration. But inclusion of interstate supply in definition of "aggregate turnover" together with registration requirement with schedule V leads to two interpretations viz:- a. The single transaction interstate supply will be liable to tax and registration is to be taken for the same. But exemption of ₹ 20 lakh wi....
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....ll be separately allowed for intra state supply. But the turnover of interstate supply will also be covered under "aggregate turnover". b. The interstate supply will also be eligible for threshold exemption of ₹ 20 Lakh but the person has to get registration and file returns. But his liability will not start as soon as he get registered. But we have to study these interpretatio....
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....ns in light of the revised GST provisions and views from netizens are invited for the same.... You can visit us at www.capradeepjain.com<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....