The aggregate turnover is a crucial term under GST on which various compliances under GST depends including requirement of registration [Refer short note on "GST Registration Provisions"], eligibilty for composition scheme [Refer short note on "Composition Scheme"], return frequency [Refer short note on "Returns under GST"] and so on.

(A) Section 2(6) of CGST Act defines "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.

Important components in the calculation of Aggregate Turnover are

• (a) Taxable Supply
• (b) Inward Supplies on which tax is payable on RCM
• (c) Exempt Supply
• (d) Export of Goods or Services
• (e) Inter-State Supplies
• (f) Computation on All India basis
• (g) Taxes such as Central Tax, State Tax, Union Territory Tax, Integrated Tax and Cess

(B) Section 2(108) of CGST Act defines "taxable supply" means a supply of goods or services or both which is leviable to tax under this Act.

While determining the goods or services or both which are leviable to tax under CGST, Section 9(1) of CGST Act specify to levy a tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 [Refer short note on "Value of Supply"]. Accordingly, all intra-state supplies [Refer short note on "Nature of Supply"] of goods or services or both except mentioned earlier are covered under Taxable Supply.

(C) Section 2(67) of CGST Act defines "inward supply" in relation to a person, shall mean receipt of goods or services or both whether by purchase, acquisition or any other means with or without consideration.

Section 9(3) and Section 9(4) of CGST Act empowers Government to specify categories of supply of goods or services or both or class of registered persons, to pay the tax on reverse charge basis [Refer short note on "Reverse Charge Mechanism [RCM]"] as the recipient of such supply of goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both.

Even though the taxes on such supplies are paid by recipient, the value of such supplies will be counted in turnover of supplier of goods and services and as specifically mentioned, it will not be considered as turnover of recipient of supply.

(D) Section 2(47) of CGST Act defines "exempt supply" means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply.

Section 11 of CGST Act empowers Government to exempt generally, either absolutely or subject to such conditions as may be specified therein, goods or services or both of any specified description from the whole or any part of the tax leviable thereon.

Exempt Supply includes non-taxable supply which Section 2(78) of CGST Act defines as "non-taxable supply" means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act.

It is worth to note that definition of exempt supply includes two categories viz.

• goods or services or both which attracts nil rate of tax (implying such goods or services on which tax is levied at nil rate and accordingly such goods or services are basically leviable to tax); and
• goods or services or both which may be wholly exempt from tax (implying such goods or services on which tax is leviable)

(E) Section 2(5) of IGST Act defines "export of goods" with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India.

Section 2(6) of IGST Act defines "export of services" means the supply of any service hen,‐

• (i) the supplier of service is located in India;
• (ii) the recipient of service is located outside India;
• (iii) the place of supply of service is outside India;
• (iv) the payment for such service has been received by the supplier of service in convertible foreign exchange or in Indian rupees wherever permitted by the Reserve Bank of India; and
• (v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8.

(F) Section 7 of IGST Act defines "Inter-state Supply" to include supply of goods or services, where the location of the supplier and the place of supply [Refer Charts on "Place of Supply"] are in two different States or two different Union territories or a State and a Union territory.

(G) Section 25(5) of CGST Act states where a person has an establishment in multiple States or Union territory, then each such establishments shall be treated as establishments of distinct persons for the purposes of this Act. Similarly Proviso to Section 25(2) of CGST Act allows a person having multiple places of business in a State or Union territory to have a separate registration for each such place of business and all separately registered places of business of such person shall pay tax under the Act on supply of goods or services or both made to another registered place of business of such person and issue a tax invoice or a bill of supply , as the case maybe, for such supply.

Section 25(5) of CGST Act states where a person has an establishment in multiple States or Union territory, then each such establishments shall be treated as establishments of distinct persons for the purposes of this Act. Similarly Proviso to Section 25(2) of CGST Act allows a person having multiple places of business in a State or Union territory to have a separate registration for each such place of business and all separately registered places of business of such person shall pay tax under the Act on supply of goods or services or both made to another registered place of business of such person and issue a tax invoice or a bill of supply , as the case maybe, for such supply.

Accordingly, a person having PAN can have multiple registrations under GST and thus while determining Aggregate Turnover, turnover of all entities or establishments having same PAN, though having different registrations under GST, to be counted.

(H) As the Aggregate Turnover is to be counted for the purposes of GST Law, the taxes levied under GST Laws need to be excluded while calculating the turnover and accordingly following taxes are excluded viz.

• Central Tax - Section 2(21) of CGST Act defines "central tax" means the central goods and services tax levied under section 9 of this Act (Central Goods and Services Tax Act, 2017);
• State Tax - Section 2(104) of CGST Act defines "State tax" means the tax levied under any State Goods and Services Tax Act;
• Union Territory Tax - Section 2(115) of CGST Act defines "Union territory tax" means the Union territory goods and services tax levied under the Union Territory Goods and Services Tax Act;
• Integrated Tax - Section 2(58) of CGST Act defines "integrated tax" means the integrated goods and services tax levied under the Integrated Goods and Services Tax Act;
• Cess - Section 2(22) of CGST Act defines "cess" shall have the same meaning as assigned to it in the Goods and Services Tax (Compensation to States) Act and Section 2(c) of Goods And Services Tax (Compensation To States) Act, 2017 defines "cess"means the goods and services tax compensation cess levied under section 8.

(I) Accordingly, Aggregate Turnover includes almost all types of supplies such as intra-state supply, inter-state supply, export, exempt supply including non-taxable supply and supplies between persons having same PAN but different GST registrations also.