Aggregate turnover: the computation that decides thresholds and obligations
One number decides registration, composition, e-invoicing, audit and several rules. Most companies compute it wrongly.
Aggregate turnover under Section 2(6) means the aggregate value of all taxable supplies excluding inward supplies on which tax is payable on reverse charge, exempt supplies, exports of goods or services, and inter state supplies of persons having the same permanent account number, computed on an all India basis, excluding central tax, state tax, union territory tax, integrated tax and cess. Annual aggregate turnover computed on this basis determines registration liability, composition eligibility, e-invoicing applicability, the annual return and reconciliation requirements, and several rules including Rule 86B.
What is included and excluded
Included: taxable supplies, exempt supplies, exports, and inter state supplies of all registrations under the same permanent account number, across India.
Excluded: inward supplies on which tax is payable under reverse charge, and the taxes themselves.
The two errors that recur are computing state wise rather than all India, and omitting exempt supplies. Both understate the figure and both have consequences.
Interest income, dividend, and the sale of securities require care: exempt supplies are included, and transactions outside supply are not, and the two must be separated deliberately.
What the number decides
Registration liability under Section 22, and the threshold applicable to goods or services.
Composition eligibility under Section 10 and the separate service provider limit.
E-invoicing applicability, which is by notified turnover threshold and has been reduced in stages, with the applicability determined by turnover in any preceding financial year from 2017-18 onwards.
The annual return and the reconciliation statement requirements, and the exemption thresholds for them.
Rule 86B, the quarterly return option, and the HSN reporting requirement in returns.
The control
Compute the figure once a year, formally, with a working paper, and circulate it to everyone who needs it — compliance, systems, and the auditors.
Reconcile it to the financial statements with an explanation for each difference. That reconciliation is also the answer to a turnover mismatch notice.
Where a threshold is approaching, plan the consequence before it is crossed, particularly for e-invoicing, which requires system change.
Note that the portal displays an annual aggregate turnover figure which may not match your computation; reconcile rather than adopt it.
What to do on Monday
Compute aggregate turnover formally each year with a working paper, on an all India basis.
Reconcile it to the financial statements with an explanation for every difference.
Circulate the figure to compliance, systems and auditors, because several obligations depend on it.
Plan system changes before a threshold is crossed, particularly for e-invoicing.
This page states the general position. A reader with a specific question on their own facts may write to the GST practice at AMLEGALS.
Write to the GST practiceQuestions we are asked on this
Is aggregate turnover computed per state?
No. It is computed on an all India basis for all registrations under the same permanent account number.
Are exempt supplies included?
Yes. This is the most common omission.
Is inward reverse charge included?
No. It is expressly excluded.
Does the portal figure govern?
The portal displays a figure that may differ from your computation. Reconcile it and keep the working paper.
Which year's turnover applies for e-invoicing?
Applicability is determined by turnover in any preceding financial year from 2017-18 onwards, against the notified threshold. Verify the current threshold.
In this cluster
- GST registration in 2026: thresholds, documents and timelines
- Suo motu cancellation and the revocation route
- Retrospective cancellation and its effect on buyers
- Physical verification, biometric authentication and registration rejection
- Multiple registrations, places of business and additional premises
- Casual taxable person and non resident taxable person registration
- Composition scheme: eligibility, restrictions and exit
- Amendment of registration and the officer's discretion
- Section 29(2) grounds of cancellation, read strictly
GST Insights is published by AMLEGALS for general information. Law stated as on 3 September 2026. Not advice on any particular set of facts; not an advertisement or a solicitation under Rule 36 of the Bar Council of India Rules. Readers with a question on their own facts may write to the GST practice of their own accord.