Issues in Definition of Aggregate Turnover

under GST
By CA Satbir Singh | August 7, 2017
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(Last Updated On: August 7, 2017)

Suggestions on GST Acts (July 2017) by Institute of Chartered Accountants of India

Contents [hide]

1 Definition of term Aggregate Turnover

2 Issue
3 Suggestion
4 Related Topic on GST

Definition of term Aggregate Turnover

Section 2(6) of CGST Act provides that aggregate turnover means the aggregate value of
all taxable supplies, exempt supplies, exports of goods or services or both and inter-State
supplies of a person having the same PAN, to be computed on all India basis and excludes
taxes, if any, charged under the CGST Act, SGST Act, UTGST Act and the IGST Act, as the
case may be;

Issue
The term exports of goods or services or both cover all the exports which may be
taxable as well as non-taxable. Reference may be drawn from wordings in section 2(108)
(taxable supply) CGST Act read with sections 2(5) (export of goods) and 2(6) (export of
services) Revised IGST Law.

If exempt supplies are included in the aforesaid threshold of Rs.20 lakh that would mean
that if a dealer is involved in exclusive supply of exempt goods/services and if he happens to
make a small supply of taxable goods/services, then he will become liable for registration. As
such the turnover limit of Rs.20 lakh is too low a limit and if the exempt supplies are also
included therein than a very large number of people will become liable for registration
without any substantial revenue to the Government.

Suggestion
It is therefore suggested that the reference of the words export of goods / services be
accordingly removed from definition of Aggregate Turnover.

It is suggested that instead of words aggregate turnover the words aggregate

turnover of taxable supplies be used.