📊How to Calculate Turnover for GST Registration Threshold in India

How to Calculate Turnover for GST Registration Threshold in India

If you’re running a business in India, one of the most crucial legal obligations you must be aware of is GST registration. Whether you're just starting out or scaling up, the Goods and Services Tax (GST) law mandates registration based on your aggregate turnover.

But what exactly is turnover under GST? How do you calculate it accurately? What if you’re operating in multiple states or dealing with exempt goods?

This detailed guide will answer all your questions—and help you make the right call when it comes to GST compliance.





📚 What is GST Registration?

GST registration is the process by which a business gets enlisted under the Goods and Services Tax regime. Once registered, a unique GSTIN (Goods and Services Tax Identification Number) is issued.
Businesses must register for GST if their aggregate turnover exceeds the prescribed threshold limit. Failing to register, even when you're required to, can lead to penalties and interest.





🧾 What is Turnover Under GST?

Turnover under GST refers to the aggregate value of all taxable supplies, exempt supplies, exports, and inter-state supplies of a person having the same PAN, excluding inward supplies on which tax is payable on reverse charge basis and taxes (CGST, SGST, IGST, and Cess).


📚 What to Include in "Aggregate Turnover"?

📌 As per Section 2(6) of the CGST Act, 2017, "Aggregate Turnover" includes:

  • ✔️ Taxable Supplies (sales on which GST is charged)

  • ✔️ Exempt Supplies (e.g., unprocessed food grains, health services)

  • ✔️ Exports (zero-rated, but still part of turnover)

  • ✔️ Inter-State Supplies (to customers outside your state)

  • ✔️ Stock Transfers between branches in different states (with same PAN)

💡 Note: Turnover is considered on an all-India basis for all businesses registered under the same PAN.


📌 Threshold Limits for GST Registration 

🧾 Category🚩 Location💰 Threshold Limit
Suppliers of GoodsNormal States₹40 Lakhs
Special Category States*₹20 Lakhs
Suppliers of ServicesAll States (except Special)₹20 Lakhs
Special Category States₹10 Lakhs

🚫 What’s Not Included?

❌ Taxes (CGST, SGST, IGST, Cess)
❌ Reverse Charge inward supplies
❌ Value of inward supplies
❌ Job work services received by principal


🧮 How to Calculate Aggregate Turnover – Step-by-Step Example

Let’s say you’re a trader based in Delhi, and your business has the following data for FY 2024–25:

DescriptionAmount (₹)
Intra-state Taxable Sales (Delhi)28,00,000
Exempt Supplies4,00,000
Inter-state Supplies (Delhi → UP)6,00,000
Exports 2,00,000
Branch Transfer to Mumbai Branch1,00,000

Aggregate Turnover =
28,00,000 (taxable) + 4,00,000 (exempt) + 6,00,000 (inter-state) + 2,00,000 (export) + 1,00,000 (stock transfer)
= ₹41,00,000

✅ Conclusion: You’ve crossed the ₹40 lakh threshold, so GST registration is mandatory.


🤔 Why is Turnover Calculation Important?

📌 Helps determine GST registration requirement
📌 Assists in compliance – avoid penalties & notices
📌 Impacts eligibility for Composition Scheme
📌 Essential for annual return filing and audit applicability


🛡️ Pro Tips to Stay Compliant

✔️ Keep books and invoices updated monthly
✔️ Track turnover PAN-wise, not just branch-wise
✔️ Use accounting software or consult a tax expert
✔️ Register as soon as you cross the threshold to avoid penalties


📘 For expert assistance with, consult Team TAXAJ. We simplify compliance and ensure timely tax filings.

👉 Join our WhatsApp Channel for regular compliance updates: 👉 TAXAJ WhatsApp Channel

📺 Explore more on our YouTube channel: 👉www.youtube.com/@taxajca

📞 Reach us at +91 8802912345 (Call/WhatsApp)

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