GST

Turnover under the GST Law

The main question arises while calculating Turnover, what is included, what is not included.  So here is the detailed analysis of Turnover under the GST.

 

To understand the Turnover under the GST, lets analyse the various definitions under the CGST Act, 2017

 

What is the Aggregate Turnover under GST

 

As per Section 2 (6) of the CGST Act 2017 “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;

 

Lets Analyse each type of turnover which is included in the definition of Aggregate turnover as per section 2(6) of the CGST Act,

 

Definition of Taxable Supply: Section 2 (108) of the CGST Act 2017  “taxable supply” means a supply of goods or services or both which is livable to tax under this Act;

 

Definition of Exempt Supply: As per Section 2 (47) of the CGST Act 2017  “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;

 

Definition of Goods: As per Section 2 (52) of the CGST Act 2017,  “goods” means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply;

 

Definition of Services: As per Section 2 (102) of the CGST Act 2017,  “services” means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged;

 

Explanation.- For the removal of doubts, it is hereby clarified that the expression “services” includes facilitating or arranging transactions in securities;.

 

Definition of Securities: As per Section 2 (101) of CGST Act 2017,  “securities” shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956;

 

So the aggregate of the following is the turnover under the GST :

~ aggregate value of all taxable supplies (Goods & Services both)

~ exempt supplies (Goods & Services both)

~ exports of goods or services or both

~ inter-State supplies on the same Permanent Account Number

~ actionable claim, growing crops, grass and things attached to or forming part of the land

~not to include central tax, State tax, Union territory tax, integrated tax and cess;

~ not to  include the value of inward supplies on which tax is payable by a person on reverse charge basis

~ not to include money

~ not to include security

~ facilitating or arranging transactions in securities;

~ facilitating or arranging transactions in money.

 

Tags: GST, GST Audit, Turnover for GST, Turnover for Income Tax, taxable supply, exempt supply, Goods under GST, Services under GST.

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