# Turnover in State / Union Territory
## Definition under Sec 2(112)
Aggregate value, within a State/UT by a taxable person, of:
Included ✓
- Taxable supplies (excluding inward supplies on which tax is payable under RCM)
- Exempt supplies
- Exports of goods/services/both
- Inter-State supplies of goods/services/both
Excluded ✗
- Central tax, State tax, Union Territory tax, Integrated tax and Cess
## Carve-out under Explanation 2 to Sec 10 (for paying composition tax)
For computing tax payable under composition, 'turnover in State/UT' shall NOT include:
1. Supplies from 1st April of the FY up to the date the person becomes liable for registration (pre-registration period).
2. Exempt supply of services by way of extending deposits, loans or advances, where consideration is in the form of interest or discount.
## Why both definitions matter
| Question | Use |
|---|---|
| Am I eligible (preceding FY)? | Aggregate turnover (Sec 2(6) + Exp 1) |
| Can I include inter-State supplies in current FY? | No — composition prohibits them |
| What do I pay tax on? | Turnover in State/UT (Sec 2(112)) less Exp 2 carve-outs |