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Microlesson · 5-min read

Aggregate Turnover for Composition Scheme Eligibility

## Aggregate Turnover Concept

### Definition

Aggregate Turnover is computed on an All India basis of a person having the same PAN. It is used to determine eligibility to opt for the composition scheme (compared against ₹1.5 Cr / ₹75 lacs / ₹50 lacs thresholds in the preceding FY).

### Inclusions (What Adds to Aggregate Turnover)

ComponentStatus
Taxable suppliesInclude
Exempt suppliesInclude
Export suppliesInclude
Inter-state suppliesInclude
Taxes other than GST (e.g., entertainment tax, customs duty)Include
Supplies from 1st April to date of becoming liable for registrationInclude

### Exclusions (What is NOT counted)

ComponentStatus
Inward supplies taxable under RCM (where person is recipient)Exclude
GST taxes including CGST/SGST/IGST/CessExclude
Interest or discount on loan, deposit, advance (being exempt supply)Exclude

### Special Note on Export/Inter-state Supplies

Value of export and inter-state supply is relevant only when calculating aggregate turnover for the preceding year (for eligibility check). This is because a composition supplier cannot make export and inter-state supplies in the year for which composition is opted. So for current-year computation under composition, these don't arise.

### Why 'All India + Same PAN'?

A person may have GST registrations in multiple states; aggregate turnover combines all of them to determine total scale of operations.

Worked example

### Example 1

Example: Mr. X has businesses in Maharashtra and Karnataka under same PAN. In PY 2024-25:

  • Maharashtra: Taxable ₹40 lacs, Exempt ₹10 lacs, GST collected ₹5 lacs
  • Karnataka: Taxable ₹35 lacs, Inter-state outward ₹15 lacs, GST collected ₹4 lacs
  • Interest on FD: ₹3 lacs
  • Inward supplies under RCM: ₹2 lacs

Aggregate Turnover computation:

= 40 + 10 + 35 + 15 = ₹100 lacs (₹1 Cr)

Excluded: GST (5+4), Interest on FD (₹3 lacs), Inward RCM (₹2 lacs).

→ Since ₹1 Cr ≤ ₹1.5 Cr, eligible for Section 10(1)/(2) composition (assuming other conditions met).

⚠️ Common exam mistakes

  • Including GST taxes (CGST/SGST/IGST) in aggregate turnover - they are excluded
  • Including inward RCM purchases in supplier's aggregate turnover - RCM inwards are not 'outward supplies' of this person
  • Excluding exempt supplies from aggregate turnover - exempt supplies are included
  • Computing PAN-wise turnover state by state separately - aggregate is across all India under same PAN
  • Excluding interest on bank loans/advances from exempt supplies when checking other context (here it's excluded from aggregate turnover specifically)
Bare-Act text Section 2(6) · CGST Act, 2017 · click to expand
'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.
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