Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
What's included / excluded
Include normal sales/receipts. Exclude capital receipts, sale of fixed assets, and (where shown separately) GST.
GST treatment
If GST is shown separately in invoices, it’s excluded from turnover; if billed inclusive, treatment differs. Confirm for your books.
Edge cases in the turnover figure
Some items trip up the turnover calculation. For traders and manufacturers, turnover is gross sales less returns and trade discounts. For derivatives and speculative trades the ICAI guidance treats turnover differently — broadly the net of favourable and unfavourable differences — rather than the full contract value, which matters for F&O traders near the limit. Advance received against a future supply isn’t turnover until the supply happens; sale of a fixed asset or investment is a capital receipt, not turnover. GST collected and shown separately is excluded. Because audit applicability turns entirely on this figure, it’s worth confirming the basis with your accountant rather than reading it straight off the GST portal. Where a person runs more than one business, the turnovers are added for the 44AB test unless a business is separately under presumptive taxation, so the grouping of activities needs to be settled before the figure is finalised.