Aggregate Turnover refers to the total value of all taxable supplies, exempt supplies, exports of goods or services, and inter-state supplies made by a business under the same Permanent Account Number (PAN) in India, before deducting any taxes such as GST. This term is commonly used under the Goods and Services Tax (GST) framework to determine a business's eligibility for GST registration, compliance obligations, and applicable tax schemes.
It is important to note that Aggregate Turnover includes all supplies made on an all-India basis, even if the business operates from multiple states. However, it does not include inward supplies on which tax is payable under reverse charge, or the value of taxes like CGST, SGST, IGST, and cess.
For small business owners and startups, understanding Aggregate Turnover is crucial, especially when evaluating whether GST registration is mandatory. For example, if your aggregate turnover exceeds the threshold limit set by the government (currently ₹40 lakh for goods and ₹20 lakh for services in most states), you are required to register under GST.
Aggregate Turnover also affects your eligibility to opt for the Composition Scheme, a simpler tax scheme with reduced compliance for small taxpayers. Additionally, it determines your due dates for filing GST returns and claiming benefits under various government initiatives.
To manage your GST compliance effectively and understand how Aggregate Turnover impacts your filings and registrations, you can explore more resources and solutions tailored for Indian businesses at FinTax24’s GST services page.
By keeping track of your Aggregate Turnover accurately, you ensure timely registrations, avoid penalties, and stay compliant with GST rules.