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GST CALCULATION – AGGREGATE TURNOVER | Company Vakil
GST Calculation

HOW TO CALCULATE YOUR GST?

For any business in India, interested in making an application for a Goods and Service Tax (GST) registration, one of the most important requirements is the ‘Aggregate Turnover’ of the business relevant to the aggregate meaning

• Turnover: Commonly this is referred to as the value of sales over a given period of time.

• Aggregate Turnover in GST: The taxable element for the supply of goods and services for businesses that have opted in for the composition scheme. Exempt from this are inter-state supplies, exported goods, and services (except for restaurants and restaurant related services). For purposes of the GST application process, the aggregate turnover includes supplies the business makes that are relevant to the composition scheme and excludes interstate sales, exports, and services outside restaurants and restaurant related services.

RATIONALE BEHIND THE AGGREGATE TURNOVER

For any GST application registration, the aggregate turnover, aggregate meaning, is a standard requirement. No GST applications will be considered unless this aggregate turnover is confirmed.

GST aggregate turnover laws:
• Turnover up to 20 lakhs – Exempt from GST.
• Turnover up to 10 lakhs – Different rules apply with some special categories. Jammu and Kashmir are completely exempt from registration. But if the turnover climbs above 10 lakhs then the rule changes and the registration is required.

To calculate the aggregate turnover, aggregate meaning, use the amount of business activities conducted by all relevant parties based on the Permanent Account Number ( PAN)–India basis.

GOVERNMENT AGREED ON STATES WITH SPECIAL CATEGORIES

The eleven states with special Government privileges are:

• Jammu & Kashmir (fully exempt)
• Manipur
• Nagaland
• Mehalaya
• Sikkim
• Himachal Pradesh
• Mizoram
• Arunchal Pradesh
• Assam
• Tripura
• Uttarakhand

AGGREGATE TURNOVER – THE CALCULATION?

ADDITIONS

• Take all taxable supplies.
• Add exempt supplies.
• Add exports.
• Add inter-state supplies.

SUBTRACTIONS

• Deduct Taxes.
• Add the value of inward supplies.
• Add the value of supplies taxable under the reverse charge.
• Add the value of non-taxable supplies.

This applies to all businesses/persons in India with the same Permanent Account Number (PAN) Accounts.

NOT INCLUDED IN THE AGGREGATE TURNOVER

The following should not be included with the aggregate turnover/ aggregate meaning calculation.

• Inwards value of supplies of goods and services.
• Non-taxable value supplies of goods and services such as alcohol etc.
• Taxes payable value for reverse charge mechanism.
• Taxes with respect to CGST, SGST or IGST Acts.

HOW TO DIFFERENTIATE BETWEEN AGGREGATE TURNOVER AND TURNOVER IN STATE

• Aggregate Turnover/Aggregate Meaning: Is the calculation required for the composition scheme.
• Turnover of a State: Is the calculation used to calculate the composition levy.

Note: If you have any questions about this article, or require any assistance, please contact Company Vakil

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