Section 2(6) - Definition of "aggregate turnover" under CGST Act

2(6).1 Definitions of Aggregate Turnover (AT)

	Section 2(6) “aggregate turnover” means Aggregate value of all (i) taxable supplies, (ii) exempt supplies, (iii) exports of goods or services or both and (iv) inter-State supplies of persons having same PAN, to be computed on all India basis Aggregate Turnover excludes (i) central tax, State tax, Union territory tax, integrated tax and cess; (ii) Inward supplies on which tax is payable under RCM
	As person section 2(6) AT Includes Taxable and Exempt Supplies to outside person Exports of goods or services or both Inter-state supplies of all branches having same PAN
	Turnover will be computed PAN wise.
Ex	Outward Supplies taxable under RCM will be part of the AT of the supplier of such supplies. X Ltd. pays GST on sitting fees paid to its directors for the services rendered by them, under reverse charge. Value of services provided by the directors to X Ltd. will form part of the aggregate turnover of the directors and not of X Ltd.
Ex	AT includes Inter-state supplies of all branches having same PAN Example A dealer ‘X’ has two offices – one in Delhi and another in Haryana. In order to determine whether ‘X’ is liable for registration, turnover of both the offices would be taken into account and only if the same exceeds the applicable threshold limit, X is liable for registration.
Ex	AT Includes Exempt Supplies Madhur Oils, Punjab, is engaged in supplying machine oil as well as petrol. Supply of petrol is not leviable to GST, but supply of machine oil is taxable. In order to determine whether Madhur Oils is liable for registration, turnover of both non-taxable as well as taxable supplies would be taken into account and if the same exceeds the applicable threshold limit, Madhur Oils is liable for registration. AT to include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals. X Ltd. has appointed M/s Y as its agent. M/s Y makes supply of goods on its own account as well as on behalf of X Ltd. All the supplies of goods made by M/s Y as agent of X Ltd as well as on its own account will be included in the aggregate turnover of M/s Y.

T-1 [ICSI-P-D19-O-3b(i)-3] [ICSI-P-J18-6b(ii)-2]

Explain “Aggregate Turnover” and how the same has to be computed in the context and with reference to the provisions contained under the CGST Act, 2017.

T-2 [ICSI-E-J21-O-78-1]

Section 2(6) defines ‘‘aggregate turnover’’ as the aggregate value of

(a) All taxable supplies including the value of inward supplies on which tax is payable by a person on reverse charge basis, exempt supplies, export of goods or services or both and interstate supplies of person having the same permanent account number to be computed on all India basis.

(b) All taxable supplies excluding the value of inward supplies on which tax is payable by a person on reverse charge basis, exempt supplies, export of goods or services or both and interstate supplies of person having the same permanent account number to be computed on all India basis

(c) All taxable supplies excluding the value of inward supplies on which tax is payable by a person on reverse charge basis, exempt supplies, export of goods or services or both and interstate supplies of person having different permanent account number to be computed on all India basis.

(d) All taxable supplies including the value of inward supplies on which tax is payable by a person on reverse charge basis, exempt supplies, export of goods or services or both and interstate supplies of person having different permanent account number to be computed on all India basis.

Question-1 [ICAI-I-Ch3-4]

Which of the following is not included in aggregate turnover?

(a) Exempt supplies of goods or services or both

(b) Export of goods or services or both

(d) Value of inward supplies on which tax is paid under reverse charge

Question-2 [ICMAI-I-J19-1(c)(i)-1]

Under GST the phrase “Aggregate Turnover” includes exempt supplies also. [T/F]

Quesiton-3 [ICSI-E-J19-O-95-1]

Section 2(6) of the CGST/SGST Act, 2017 defines aggregate turnover which is being computed on all India basis excluding the taxes charged under CGST Act, SGST Act, Act and IGST Act. Aggregate turnover shall include all supplies made by a taxable person comprising of

(i) Taxable supply

(ii) Exempt supply

(iii) Export of goods and or services

(iv) All Inter state supply of person having same PAN

(v) Supply on which tax is levied on reverse charge basis

(vi) Value of all inward supply

(A) (i), (iii), (iv) and (v)

(B) (i), (iii), (iv) and (vi)

(D) (i), (ii), (iii) and (iv)

Question-4 [ICSI-E-J18-86-1]

Mr. Bala has made supply (within State) of taxable goods to the tune of Rs.17 lakh, export supplies of Rs.3 lakh and intra-state supply of exempt services of Rs.4 lakh. His aggregate turnover as per section 2(6) of the CGST/SGST Act, 2017 is :

(A) Rs.17 lakh; (B) Rs.20 lakh; (C) Rs.24 lakh; (D) None of the above

Question-5 [ICSI-P-Ch4-Illustration]

Zebra & Co., Chennai is a manufacturer and is a registered supplier (under regular scheme). It furnishes the following details for the tax period ended on 31st March, 2019

(i) Intra-State supply of goods (includes GST @ 18%) Rs. 59,00,000

(ii) Goods exported (GST Nil) Rs. 30,00,000

(iii) Inward supplies liable for reverse charge Rs. 7,00,000

(iv) Transfer of goods to branch at Delhi (without GST) Rs. 50,00,000

Compute the aggregate turnover’ under section 2(6) of the CGST Act, 2017 ?

Answer

Particulars	Turnover (Rs.)
Intra-State supply of goods Rs.59,00,000 X 100 /118 Excludes CGST, SGST, IGST	50,00,000
Export Supplies [considered as equivalent to taxable supplies]	30,00,000
Inward supplies under reverse charge [not to be included]	Nil
Transfer of goods to branch / distinct person is categorized as supply under section 7 of the CGST Act. [No adjustment needed as GST is already excluded]	50,00,000
Aggregate Turnover	1,30,00,000

Question-5A [ICSI-P-D19-2a-5]

Gopal Das & Co., Kolkata is a manufacturer and is a registered supplier (under regular scheme). It furnishes the following details for the tax period ended on 31st March, 2019:

(i) Intra-State supply of goods (includes GST @ 18%) Rs.70,80,000

(ii) Goods exported (GST Nil) Rs.32,00,000

(iii) Inward supplies liable for reverse charge Rs.6,00,000

(iv) Transfer of goods to Branch at Delhi (without GST) Rs.50,00,000

Complete the ‘aggregate turnover’ under section 2(6) of the CGST Act, 201

Question-6 [ICSI-E-D21-82-1]

Vikas Ltd provides following information and details for the month of November 2020 :

(a) Intra-state outward supply Rs.9 Lakhs

(b) Inter-state exempt outward supply Rs.6 Lakhs

(d) Payment made for availing GTA services Rs.1 Lakh

The aggregate turnover of Vikas Ltd for the month of November, 2020 shall be:

(A) Rs.9 Lakhs (B) Rs.15 Lakhs (C) Rs.27 Lakhs (D) Rs.21 Lakhs

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Section 2(6) - Definition of "aggregate turnover" under CGST Act