AGGREGATE TURNOVER UNDER REVISED GST LAW
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 17-1-2017
DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN
AGGREGATE TURNOVER UNDER REVISED GST LAW:-
As we have discussed in earlier GST updates that registration under GST regime is required only if the turnover of the assessee crosses the threshold limit of Rs twenty lacs. Today in this update we shall analyse the definition of “aggregate turnover” and changes brought in by Revised GST Draft Law.
The definition of aggregate turnover under revised GST Draft Law is under section 2(6) which states that the aggregate turnover shall include all taxable supplies, exempt supplies, exports of goods and/or services and inter-State supp
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ught in this definition are:-
* The removal of 'non taxable supplies' from the definition. Under old GST law, this was also included in the definition. It was thought to be a welcoming change on government's behalf as already the threshold limit given is too less and then including non taxable supplies along with exempted supplies further narrows the threshold limit. But the definition of "exempt supply" is given under Section 2(44) of revised GST Act which reads as follows:-
“exempt supply” means supply of any goods and/or services which are not taxable under this Act and includes such supply of goods and/or services which attract nil rate of tax or which may be exempt from tax under section 11 ;
Hence the delight was short
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n this provision in old GST law came then everyone was of the view that assessee has to pay the GST even for single transaction of interstate supply. After registration, he has to pay the tax on each supply. This interpretation came from the concept of voluntary registration.
But inclusion of interstate supply in definition of "aggregate turnover" together with registration requirement with schedule V leads to two interpretations viz:-
a. The single transaction interstate supply will be liable to tax and registration is to be taken for the same. But exemption of ₹ 20 lakh will be separately allowed for intra state supply. But the turnover of interstate supply will also be covered under "aggregate turnover".
b
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