# Aggregate Turnover under Composition Levy
## Why this matters
Eligibility for the composition scheme hinges on aggregate turnover of the preceding financial year. Misreading what to include/exclude leads to either wrongful opting-in or wrongful denial.
## What 'Aggregate Turnover' covers (Explanation 1 to Sec 10)
For determining eligibility to pay tax under composition levy, aggregate turnover:
- Includes: value of supplies made from 1st April of the FY up to the date the person becomes liable for registration.
- Excludes: value of exempt supply of services by way of extending deposits, loans or advances where consideration is in the form of interest or discount.
## Inter-State supplies & exports — a critical timing point
| Test FY | Are inter-State supplies/exports counted? |
|---|---|
| Preceding FY (eligibility test) | YES — included in aggregate turnover |
| Current FY (in which composition is opted) | NOT relevant — composition supplier cannot make inter-State supplies or exports at all |
Logic: Since a composition dealer is prohibited from making inter-State outward supplies and exports in the year of opting, the question of including them in current-FY turnover does not arise.
## Quick checklist before opting in
1. Compute aggregate turnover of preceding FY (PAN-based, all-India).
2. Include all values from 1st April up to date of registration liability.
3. Exclude interest/discount on deposits, loans, advances.
4. Compare with threshold (₹1.5 crore / ₹75 lakh / ₹50 lakh as applicable).