Aggregate Turnover vs Turnover in State/UT under Composition Levy

# Aggregate Turnover vs Turnover in State/UT

This is a fine but critical distinction — one is used for eligibility, the other for computing the tax.

## 1. Aggregate Turnover [Section 2(6) read with Explanation 1 to Section 10]

Used to check eligibility for composition scheme.

For determining eligibility, aggregate turnover:

• Includes value of supplies from 1st April of FY up to date of becoming liable for registration.
• Excludes value of exempt supply of services by way of extending deposits, loans or advances where consideration is interest or discount.

### Special note for current-year applicability

Value of exports & inter-State supplies is relevant only for determining aggregate turnover of preceding FY — NOT of the current FY in which composition is opted (because the supplier cannot make inter-State supplies/exports while under composition).

## 2. Turnover in State/UT [Section 2(112) read with Explanation 2 to Section 10]

Used to compute the tax payable (at 0.5%/2.5%/3%, etc.).

Aggregate value of:

• ✅ Taxable supplies (excluding inward supplies on which RCM is paid)
• ✅ Exempt supplies within the State/UT
• ✅ Exports of goods/services
• ✅ Inter-State supplies of goods/services

But excludes central tax, State tax, UTGST, IGST and cess.

### Explanation 2 to Section 10 — exclusions for tax computation

• (i) Supplies from 1st April of FY up to date of becoming liable for registration
• (ii) Exempt supply of services by way of extending deposits/loans/advances (interest/discount)

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