## Turnover in State/UT - Tax Computation Base

### Concept

While aggregate turnover is used for eligibility (all-India basis), turnover in State/UT is the base on which composition tax is computed for that particular state.

### Inclusions

Component	Status
Taxable supplies (in the state)	Include
Exempt supplies (in the state)	Include
Export and inter-state supplies	Technically include, but not relevant for composition (cannot be made by composition dealer)
Taxes other than GST	Include

### Exclusions

Component	Status
Inward supplies taxable under RCM	Exclude
GST taxes including cess	Exclude
Interest/discount on loan, deposit, advance (exempt supply)	Exclude
Supplies from 1st April of FY to the date of becoming liable to be registered	Exclude

### Important Differences from Aggregate Turnover

Aspect	Aggregate Turnover	Turnover in State/UT
Geographic scope	All India (same PAN)	State/UT specific
Pre-registration period supplies	Include	Exclude
Used for	Eligibility check	Tax computation

### Special Note on Composition

In composition scheme, tax has to be paid on both taxable and exempt supply since both are included in turnover in state/UT.

Exception: For traders (any other category u/s 10(1)/(2)), tax is paid only on taxable supplies in state/UT (exempt supplies excluded from base).

Worked example

### Example 1

Example - Manufacturer: Mr. M in Maharashtra. Period: from 1-Jul-2024 (date of registration) to 31-Mar-2025.

Taxable supplies: ₹ 60 lacs
Exempt supplies: ₹ 10 lacs
Outward supplies between 1-Apr to 30-Jun (before registration): ₹ 5 lacs

Turnover in State = ₹60 + ₹10 = ₹70 lacs (pre-registration excluded)

Tax = 1% × ₹70 lacs = ₹70,000

### Example 2

Example - Trader: Mr. T in Karnataka. Taxable supplies ₹40 lacs + Exempt supplies ₹10 lacs.

→ Tax = 1% × ₹40 lacs (only taxable supplies) = ₹40,000. Exempt supplies excluded from base for traders.

⚠️ Common exam mistakes

Including pre-registration period supplies in turnover in State/UT - these are excluded for tax computation
For traders, computing tax on (taxable + exempt) turnover - only taxable supplies form the base for traders
For manufacturer/restaurant, excluding exempt supplies from tax base - they are included
Confusing aggregate turnover (eligibility) with turnover in State/UT (tax base) - they have different rules for pre-registration supplies

Bare-Act text Section 2(112) · CGST Act, 2017 · click to expand

'Turnover in State' or 'turnover in Union territory' 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) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or Union territory by the said taxable person but excludes central tax, State tax, Union territory tax, integrated tax and cess.

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Turnover in State or Union Territory - Composition Tax Base

Worked example

⚠️ Common exam mistakes