Definition Of Turnover Under Gst For Registration

Aggregate turnover is the total value of sales your company completes each year.

Definition of turnover under gst for registration. It is sometimes known as gross earnings or income. 1 introduction under gst law a threshold exemption in respect of aggregate turnover has been prescribed and persons barring few exceptions who do not transgress such limit are neither required to obtain registration nor need to pay the tax. Sales of taxable products and services this excludes value of inward supplies on which tax is payable by a person on reverse charge basis sales of exempt products and services. For supply of services aggregate turnover of rs 20 lakhs 10 lakhs in special category states is the limit for registration.

Turnover meaning under gst audit. In case of special category states. 20 lakhs as announced in the 32nd gst council meeting. Turnover is your complete sales made by a company in a specific period.

Every business entity engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed rs 40 lakhs in a financial year is required to be registered under the gst act. However states would have an options to decide about limit within a weeks time. Aggregate turnover is a crucial parameter under gst law to find out when a person is liable for gst registration when a person is eligible for composition scheme and when a person can opt to pay tax at concessional rate under notification number 2 2019. That is different to gain and it can be a measure of earnings.

However this exemption limit for service providers remains unchanged i e. The gst turnover limit for supplier of services was rs. Aar observed that as per the definition of aggregate turnover in terms of section 2 6 of the cgst act 2017 aggregate turnover means the aggregate value of taxable supplies exempt supplies exports of goods or services or both under inter state supplies of persons having the same permanent account number to be computed on all india basis. Earlier the registration turnover limit was rs 20 lac.

According to the central board of excise and customs this number includes. The basis exemption turnover limit of gst registration have been increased from 20 lac to 40 lac to supplier of goods.