trading activity

This query is : Resolved

Nitesh Sethiya (Querist)
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21 April 2010 Dear Sir,

I am a manufacturer of Marble Slab and tiles and having turnover of Rs. 140 Lacs.

Pls tell me that if I trading i.e. purchase slab from the outsider company and sell them from my company then it is included in the limit of 4.00 crore or 150 lacs.

Pls guide me.........

CA BIREN SHAH

CA BIREN SHAH (Expert)
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30 April 2010 trading will not included in calculation of limits.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2025 Got it! You’re a **manufacturer of marble slabs and tiles** with a turnover of ₹140 lakhs and you want to know how your **trading activity** (buying slabs from another company and selling under your own company) affects your turnover limit for GST registration.

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## ✅ Understanding Turnover for GST Registration

### Scenario:

* You **manufacture marble slabs and tiles** — your manufacturing turnover is ₹140 lakhs.
* You also **purchase slabs from outsiders and sell them** (trading activity).

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### How is Turnover Calculated Under GST?

* **Total turnover includes** all business activities carried on by you — **both manufacturing and trading**.
* So, your **turnover is the sum of:**

* Manufacturing turnover (your own production)
* Trading turnover (purchases & sales of slabs from outsiders)

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### Important Points:

| Business Activity | Included in Turnover? |
| ------------------------- | ----------------------- |
| Manufacturing | Yes |
| Trading (purchase & sale) | Yes |
| Export sales | Included but zero-rated |
| Tax-exempt sales | Included |

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### Implication for GST Threshold:

* The **threshold limit for GST registration for manufacturers is ₹40 lakhs (varies by state)**.

* For **traders, the limit is ₹20 lakhs** (again, varies by state).

* But if you are both **manufacturing and trading under the same entity**, **aggregate turnover** is counted for all activities.

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### So in your case:

* If your **total turnover (manufacturing + trading) exceeds ₹40 lakhs**, you **must register for GST**.
* Since your manufacturing turnover alone is ₹140 lakhs (already above the limit), **GST registration is mandatory**.
* The trading turnover will be **added on top** of that ₹140 lakhs.

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### Summary Table

| Turnover Type | Amount (₹) | Included in Aggregate Turnover? | GST Registration Threshold |
| ------------- | ---------------- | ------------------------------- | -------------------------- |
| Manufacturing | 140 lakhs | Yes | ₹40 lakhs (approx.) |
| Trading | X (say 50 lakhs) | Yes | Included in total turnover |
| **Total** | 190 lakhs | Yes | Registered (mandatory) |

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### Final Note:

* Your **turnover for GST is aggregate turnover**, i.e., sum of manufacturing + trading turnover.
* So it’s **not separate ₹150 lakhs or ₹40 crores** — it’s the **combined total**.

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Would you like help with GST registration process or invoicing for both manufacturing and trading?

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