Ask Veda

TaxClue AI · Active
Namaste! I'm Veda — TaxClue's AI compliance assistant. 🙏

Ask me anything about GST, ITR, Company registration, Trademark, FSSAI or any compliance topic. When you're ready, I'll connect you with our expert for a free callback.
Share your details — our expert will call you
Powered by TaxClue · India's Trusted Compliance Platform
Guide · GST

GST Aggregate Turnover —
What to Include & Exclude

How aggregate turnover is computed under Section 2(6) of the CGST Act — the all-India, same-PAN figure that decides your GST registration, composition and e-invoicing obligations.

TaxClue Editorial Desk Updated 18 August 2026 4 min read 16 FAQs answered
Section 2(6), CGST Act Updated for FY 2025-26 GST Expert Reviewed
Quick Answer

Aggregate turnover = all taxable supplies + exempt + nil-rated + exports (zero-rated) + inter-state supplies, computed on an all-India, same-PAN basis across every GSTIN. It excludes the value of inward supplies taxed under Reverse Charge (RCM) and the GST itself (CGST/SGST/IGST/cess). Registration is mandatory once this figure crosses Rs40 lakh (goods) or Rs20 lakh (services) in a financial year.

Taxable + exempt + exports Include
Inter-state (same PAN) Include
GST taxes Exclude
RCM inward supplies Exclude
The core rule

What to Include & Exclude in Aggregate Turnover

Section 2(6) defines aggregate turnover as the aggregate value of all outward supplies under a single PAN, computed on an all-India basis. Use this table to place each item correctly.

Supply / itemIn turnover?Why
Taxable supplies (standard-rated)IncludeCore taxable turnover
Exempt suppliesIncludeExplicitly included u/s 2(6)
Nil-rated suppliesIncludeExplicitly included u/s 2(6)
Exports of goods & services (zero-rated)IncludeCounted even though no tax charged
Inter-state supplies (same PAN, diff. GSTIN)IncludePAN-level all-India aggregation
Stock transfers between states (same PAN)IncludeDeemed supply — included
CGST / SGST / IGST / cessExcludeTax is not part of supply value
Inward supplies taxed under RCMExcludeSpecifically excluded by Sec 2(6)
Intra-GSTIN branch transfers (same state)ExcludeNot a distinct supply

SAC/HSN classification does not change turnover computation. GST 2.0 (eff 22 Sep 2025) rationalised rate slabs but left the Section 2(6) turnover definition unchanged.

Exports still count — a common trap

Zero-rated exports are included in aggregate turnover even though no GST is charged. A pure service-exporter with Rs35 lakh of export income and no domestic sales still crosses the Rs20 lakh services threshold and must register, unless a specific exemption applies.

Unsure whether a supply counts in your turnover?

Talk to a GST Expert →
Why it matters

GST Registration Threshold — Turnover Limits

Aggregate turnover is the trigger for mandatory GST registration under Section 22. The limit depends on whether you supply goods, services, or both.

State categoryGoodsServices
Normal-category statesRs40 lakhRs20 lakh
Special-category statesRs20 lakhRs10 lakh

Special-category (Rs20L goods): Manipur, Mizoram, Nagaland, Tripura, Meghalaya, Sikkim, Arunachal Pradesh, Puducherry, Uttarakhand. J&K, Ladakh and Assam use the Rs40L goods limit.

Mixing services drops you to Rs20 lakh

The Rs40 lakh goods limit applies only if you supply goods alone and make no inter-state or e-commerce supplies. Add even a small amount of service income and your whole turnover is tested against the Rs20 lakh limit.

  • Certain persons must register regardless of turnover — inter-state suppliers of goods, e-commerce operators, casual/non-resident taxable persons and those liable under RCM.
  • Turnover is aggregated across all GSTINs under the same PAN, not state-by-state.
  • Voluntary registration is allowed below the threshold to claim input tax credit.
Small taxpayers

Turnover Limits for the Composition Scheme

The same aggregate-turnover figure decides composition scheme eligibility, checked against the preceding financial year.

Supplier typeTurnover capComposition rate
Manufacturers & traders (goods)Rs1.5 crore1%
Restaurants (no alcohol)Rs1.5 crore5%
Other service providersRs50 lakh6%

Rs75 lakh cap for goods composition in special-category states. If turnover crosses the cap mid-year, you exit composition from the first day of the next month.

Worked example

Aggregate Turnover — Step-by-Step

Add outward suppliesTaxable + exempt + nil + exports
Combine all GSTINsAll-India, same PAN
Strip out taxes & RCMExclude GST + inward RCM
Aggregate turnoverCompare to threshold

A two-state trader (same PAN)

Maharashtra GSTIN salesRs30,00,000
Karnataka GSTIN salesRs25,00,000
Exempt suppliesRs5,00,000
Less: GST collectedNil (net)
Aggregate turnoverRs60,00,000

A service exporter

Export of services (zero-rated)Rs35,00,000
Domestic taxable salesRs0
RCM inward suppliesExcluded
Threshold (services)Rs20,00,000
Must register?Yes
  • Total all taxable outward supplies (net of GST)
  • Add exempt & nil-rated supplies
  • Add exports / zero-rated supplies
  • Combine every GSTIN under the PAN
  • Add inter-state stock transfers
  • Exclude CGST / SGST / IGST / cess
  • Exclude inward supplies taxed under RCM
  • Compare against your applicable threshold
TaxClue Insight

Aggregate turnover is not the same as the "turnover in a state" used for composition tax computation. The all-India aggregate figure decides eligibility and registration; the state-wise figure is used to compute the composition levy. Mixing the two is a frequent filing error.

Want your turnover verified before you register or opt for composition?

Get Expert Help →
Government sourcesDefinition: Section 2(6), CGST Act 2017 · Registration: Section 22, CGST Act & gst.gov.in · CBIC: cbic-gst.gov.in · Thresholds: Notification 10/2019-CT (Rs40L goods, eff 1 Apr 2019)
People also ask

Frequently Asked Questions

Definition
What is included in aggregate turnover for GST?
Aggregate turnover under Section 2(6) of the CGST Act includes all supplies made under one PAN across every GSTIN in India: taxable supplies, exempt supplies, nil-rated supplies, exports (zero-rated) and inter-state supplies. It excludes the value of inward supplies on which tax is paid under Reverse Charge (RCM) and the taxes themselves — CGST, SGST, IGST and cess. It is always computed on an all-India, same-PAN basis, combining all branches.
What is the difference between aggregate turnover and taxable turnover?
Aggregate turnover is the wider figure — it adds exempt, nil-rated and zero-rated (export) supplies to taxable supplies, across all GSTINs of the same PAN. Taxable turnover is only the value of supplies on which GST is actually charged. Aggregate turnover is used to decide registration and composition eligibility; taxable turnover is used to compute the actual tax payable.
Is aggregate turnover calculated PAN-wise or GSTIN-wise?
PAN-wise, on an all-India basis. If one PAN holds GSTINs in several states, the turnover of all of them is added together. For example, GSTINs in Maharashtra (Rs30 lakh) and Karnataka (Rs25 lakh) give an aggregate turnover of Rs55 lakh. The state-wise figure is used only to compute composition tax, not to test the threshold.
Are taxes like CGST and SGST included in aggregate turnover?
No. The value of supply for GST is the price net of tax, so CGST, SGST, IGST and compensation cess are all excluded from aggregate turnover. You count the taxable value of each supply, not the tax-inclusive invoice amount.
Inclusions & Exclusions
Does export turnover count in aggregate turnover for GST?
Yes. Exports are zero-rated supplies and are explicitly included in aggregate turnover under Section 2(6), even though no GST is charged on them. This matters for the threshold: a service exporter with Rs35 lakh of exports and no domestic sales still crosses the Rs20 lakh services limit and must register, unless a specific exemption applies.
Are exempt and nil-rated supplies part of aggregate turnover?
Yes. Both exempt supplies and nil-rated supplies are specifically included in aggregate turnover under Section 2(6). Only inward supplies taxed under Reverse Charge and the GST amounts themselves are excluded — outward exempt and nil-rated supplies still count towards the threshold.
Are RCM (reverse charge) supplies included in aggregate turnover?
The value of inward supplies on which you pay tax under Reverse Charge is excluded from your aggregate turnover — Section 2(6) removes it specifically. However, your own outward supplies that a recipient must pay tax on under RCM remain part of your aggregate turnover as they are still your outward supplies.
Are stock transfers between branches included?
Inter-state stock transfers between different GSTINs of the same PAN are deemed supplies and are included in aggregate turnover. Transfers between branches under the same GSTIN within a single state are not treated as distinct supplies and are excluded.
Thresholds & Registration
What is the threshold for mandatory GST registration?
Registration is mandatory once aggregate turnover in a financial year exceeds Rs40 lakh for suppliers of goods and Rs20 lakh for suppliers of services in normal-category states. In special-category states the limits are Rs20 lakh for goods and Rs10 lakh for services. Some persons — inter-state suppliers, e-commerce operators and those liable under RCM — must register regardless of turnover.
Is the GST registration limit Rs40 lakh or Rs20 lakh?
It depends on what you supply. The Rs40 lakh limit applies only to a supplier of goods alone in a normal-category state who makes no inter-state or e-commerce supplies. Any service income drops the entire turnover test to Rs20 lakh, and special-category states have lower limits of Rs20 lakh (goods) and Rs10 lakh (services).
Did GST 2.0 change how aggregate turnover is calculated?
No. The GST 2.0 rationalisation effective 22 September 2025 restructured rate slabs into 5% and 18% with a 40% demerit rate, but it did not touch the Section 2(6) definition of aggregate turnover or the registration thresholds. The way you compute turnover, and the Rs40 lakh / Rs20 lakh limits, are unchanged.
Composition
Does aggregate turnover affect Composition Scheme eligibility?
Yes. The composition scheme is available only if aggregate turnover in the preceding financial year did not exceed Rs1.5 crore for manufacturers and traders of goods (and restaurants), or Rs50 lakh for other service providers. Special-category states use a Rs75 lakh goods cap. Crossing the cap mid-year forces an exit from composition from the first day of the following month.
What turnover figure is used to compute composition tax?
Composition tax is charged on turnover in a state (the state-wise figure), while eligibility is tested against all-India aggregate turnover. Rates are 1% for traders/manufacturers, 5% for restaurants and 6% for eligible service providers — applied to the state turnover, not the PAN-wide aggregate.
Special Cases
How is aggregate turnover calculated with multiple GSTINs?
Add the turnover of every GSTIN under the same PAN. If a company has GSTINs in Maharashtra and Karnataka with Rs30 lakh and Rs25 lakh respectively, aggregate turnover is Rs55 lakh. Inter-state stock transfers between those GSTINs are included; same-GSTIN intra-state branch transfers are not.
Are discounts and credit notes deducted from aggregate turnover?
Yes, where they reduce the value of supply. Under Section 15, the taxable value is net of discounts recorded on the invoice or linked to specific supplies and known at the time of supply. Credit notes that reduce the transaction value correspondingly reduce aggregate turnover.
Does aggregate turnover decide e-invoicing applicability?
E-invoicing applicability is based on aggregate turnover in any preceding financial year from 2017-18 onwards, currently mandatory once turnover crosses Rs5 crore. Because it is measured on the same all-India, same-PAN aggregate figure, businesses near the limit should track turnover carefully across all GSTINs.
If you would rather not do it yourself

Related TaxClue services

TaxClue GST desk

Not Sure If You Have Crossed the Threshold?

Our CA-led team computes your all-India aggregate turnover correctly, tells you exactly when registration or composition applies, and handles the filing end-to-end — 100% online, across India.