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Aggregate turnover definition

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Dhruv Rana

28 Points Posted on 29 December 2022

my query is in aggregate turnover definition whether excise duty paid is include in turnover calculation or not.

Replies (2)

Quick Summary

This discussion clarifies the definition of aggregate turnover under the CGST Act, 2017. It specifically addresses whether excise duty should be included in the turnover calculation. Based on the provided definition, which excludes central tax, state tax, and cess, it is concluded that excise duty, being a form of tax, should not be included in the aggregate turnover.

Sravan Yelagandula

Employee

73 Points Posted on 30 December 2022

As far as my knowledge goes Tax not to be included in turnover.

As per section 2(6) of CGST Act, 2017 ‘aggregate turnover’ means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.

Excise duty is a form of indirect tax that is levied by the Central Government of India for the production, sale, or license of certain goods. Excise duty charges are also collected by state governments for alcohol and narcotics.

From the above it is evident that Excise duty is a tax levied by either center or state. As taxes are not to be included in computation as per definition of aggregate turnover. Hence, it appears Excise duty not to be included in turnover.