If you’ve ever tried to understand whether you need GST registration, you will immediately come across one term again and again — Aggregate Turnover. This term decides everything:
- whether you must register under GST,
- whether you qualify for composition scheme,
- whether you fall under the “taxable person” category,
- and whether your business meets threshold limits.
The funny part is, most people assume turnover simply means sales. But under GST, it’s far broader and sometimes a bit confusing. That’s why many small businesses either overestimate or underestimate their turnover and end up miscalculating their GST liability.
In this blog, we’ll break down the meaning of aggregate turnover, what it includes, what it doesn’t include, and how businesses can calculate it correctly with simple, real-life examples.
By the end of this blog, you will know exactly what your aggregate turnover is — and whether you need a GST number.
What Is Aggregate Turnover Under GST?
As per Section 2(6) of the CGST Act, aggregate turnover means the total value of:
- Taxable supplies
- Exempt supplies
- Exports of goods or services
- Inter-State supplies
…made on an all-India basis under the same PAN.
It also includes turnover made on behalf of your principals (if you're an agent).
But surprisingly, it does not include:
- GST taxes (CGST, SGST, IGST, Cess)
- Value of inward supplies on which tax is paid under reverse charge
Why Is Aggregate Turnover Important?
The entire GST registration requirement revolves around this one definition.
1. It determines GST registration eligibility.
If your aggregate turnover crosses:
- ₹40 lakh (goods – most states)
- ₹20 lakh (services – most states)
- ₹10 lakh (special category states)
…you must register.
2. It decides eligibility for the composition scheme.
Businesses opt for a lower tax rate based on turnover limits.
3. It impacts whether you become a “taxable person.”
4. It helps in evaluating GST compliance requirements.
What All Is Included in Aggregate Turnover?
The GST definition includes the following:
1. Taxable Supplies
These are supplies on which GST is applicable:
- goods
- services
- inter-State sales
- intra-State sales
2. Exempt Supplies
Exempt supplies are counted even though GST is not charged.
Example:
- Fresh fruits and vegetables
- Healthcare services
- Education services
- Charitable activities
3. Export Supplies
Exports of goods or services are always included, even though they are zero-rated.
4. Inter-State Supplies
Whether you supply to Delhi, Maharashtra or any other state, everything counts.
5. Supplies Made on Behalf of Principals
Agents must include principal’s supplies made from their end.
What Is Excluded from Aggregate Turnover?
1. Taxes (CGST, SGST, IGST, Cess)
GST collected on invoices is not counted.
- If bill amount = ₹1,00,000 + GST (18%)
- Aggregate turnover = ₹1,00,000 only
2. Inward Supplies Under Reverse Charge
Example:
- GTA services
- Advocate services
- Sponsorship
These do NOT form part of your turnover.
3. Supplies After Job Work
If a job worker supplies finished goods on behalf of the principal, turnover is counted in principal’s books, not the job worker.
Simple Formula to Calculate Aggregate Turnover
“Aggregate Turnover = (Taxable Supplies + Exempt Supplies + Export Supplies + Inter-State Supplies) - (Taxes + Inward RCM Supplies) ”
Real-Life Examples to Understand Better
Example 1: Taxable + Exempt + Export Turnover
XYZ Traders (Maharashtra) makes:
- Taxable goods: ₹25,00,000
- Exempt goods: ₹10,00,000
- Export services: ₹5,00,000
- GST collected: ₹4,50,000
Aggregate Turnover = 25,00,000 + 10,00,000 + 5,00,000 = ₹40,00,000
GST collected is ignored.
- XYZ now crosses the ₹40 lakh threshold → GST registration becomes mandatory.
Example 2: RCM Transactions Not Counted
A consultant earns:
- Services income: ₹9,50,000
- Receives legal service (RCM): ₹50,000
Aggregate Turnover = ₹9,50,000 only
Even though he paid tax on RCM, reverse charge purchases are not part of aggregate turnover.
- Below ₹20 lakh → No GST registration required.
Example 3: Multiple Branches Across India
Company ABC has:
- Delhi branch turnover: ₹12 lakh
- Mumbai branch turnover: ₹18 lakh
- Bangalore branch turnover: ₹16 lakh
Aggregate Turnover = 12 + 18 + 16 = ₹46 lakh
Even if each state is registered separately, they share the same PAN.
- ABC must register because aggregate turnover > ₹40 lakh.
Example 4: Agent Supplying on Behalf of Principal
ABC Agencies supplies goods worth ₹30 lakh on behalf of Mohini Enterprises.
Even if ABC is just an agent:
- ₹30 lakh is included as aggregate turnover of ABC
- Mohini’s own turnover also counted separately
This is to prevent turnover shifting between businesses.
Common Mistakes Businesses Make in Calculating Aggregate Turnover
Mistake 1: Counting GST collected in turnover
Many businesses mistakenly include the GST portion.
Mistake 2: Ignoring exempt supplies
These MUST be counted.
Mistake 3: Assuming each branch has its own turnover
GST sees turnover PAN-wise across India.
Mistake 4: Counting RCM inward supplies
These are not part of turnover.
Mistake 5: Ignoring supply made by agents or principals
These are included/pushed to principal depending on the scenario.
Difference Between “Aggregate Turnover” and “Turnover in a State”
Aggregate Turnover
- all-India basis
- all branches under same PAN
- includes inter-State supplies
Turnover in a State
- supplies made from a single state
- used for composition tax rate calculation
Conclusion
Aggregate turnover is the foundation of GST compliance. Whether you need registration, whether you can opt for a composition scheme, and whether you qualify as a taxable person—all depend on this one calculation.
Once you understand what is included and excluded, the whole GST system becomes easier and more predictable. Always calculate your turnover PAN-wise and include all exempt and export supplies.
FAQs
1. What is aggregate turnover in GST?
Aggregate turnover includes taxable supplies, exempt supplies, exports, and inter-State supplies calculated on an all-India PAN basis.
2. Does GST collected form part of aggregate turnover?
No. GST taxes (CGST, SGST, IGST, Cess) are excluded.
3. Are reverse charge inward supplies included?
No. RCM inward supplies are not counted in aggregate turnover.
4. Is export turnover part of aggregate turnover?
Yes. Export supplies (goods/services) are always included.
5. Do exempt services count in aggregate turnover?
Yes. They must be included even though no GST is charged.
6. What about turnover from multiple branches?
All branches under the same PAN are combined to compute aggregate turnover.
7. Do I need GST registration if my turnover crosses threshold in only one branch?
Yes. Aggregate turnover is calculated PAN-wise, not state-wise.
