Difference between total turnover and taxable turnover in CST act.

Reply— Under section 2(6) of CST Act, “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.
Taxable turnover only includes taxable supplies of good or service or both.

“turnover” means the aggregate value of the realisation of amount made from the sale, supply or
distribution of goods or on account of services rendered, or both, by the company during a
financial year.

How do I calculate my “taxable turnover”?

While your qualifying turnover is the amount used to determine whether you’re eligible for
Turnover Tax, your “taxable turnover” is the amount used to calculate the tax payable. These
numbers can differ, depending on your business situation.

“Taxable turnover” is the total income generated by the business as a result of its trading activities,
e.g. paid invoices for services delivered, or products supplied plus 50% of all receipts of a capital
nature from the disposal of business assets.

In addition, registered companies (not individuals) will need to include all interest from
investments, but not dividends.

What are the current turnover tax rates?

Below are the Turnover Tax Rates for the years of assessment ending between 1 March 2015 and
28 February 2023

Turnover (R) Rate of Tax (R)

0 - 335 000 0%
335 001 - 500 000 1% of the amount above 335 000
500 001 - 750 000 1 650 + 2% of the amount above 500
000
750 001 and above 6 650 + 3% of the amount above 750
000