GST Turnover Calculation Guide

GST Turnover Calculation Guide for Vendors on D2N.in

Vendors selling on D2N.in should track their annual turnover to determine if GST registration is

required. This guide explains the GST turnover limits and how to calculate turnover correctly.
1. What is Turnover for GST?
Turnover includes the total value of all sales (before deductions), including:
- Product sales (taxable & exempt)
- Export sales (if any)
- Inter-state and intra-state sales
- Sales through any other online/offline platform
Not included in turnover:
- GST collected from buyers
- Refunds or canceled orders
2. GST Turnover Limits (For Financial Year April 1 - March 31)
- Selling within the same state: GST required if turnover exceeds Rs. 40 lakh (Rs. 20 lakh for special
category states)
- Selling to other states: GST required, regardless of turnover
- Selling only GST-exempt products: No GST required
3. How to Calculate Turnover?
Example 1: Local Sales (Same State)
- Annual Sales: Rs. 38 lakh
- GST Required? No (below Rs. 40 lakh)
- If sales reach Rs. 41 lakh, GST is required from that point.
Example 2: Interstate Sales
- Sales in Gujarat: Rs. 10 lakh
- Sales in Maharashtra: Rs. 5 lakh
- Total Turnover: Rs. 15 lakh
- GST Required? Yes (Interstate sales require GST).
Example 3: GST-Exempt Goods
- Annual turnover: Rs. 50 lakh
- Products: Handicrafts, unbranded food grains
- GST Required? No (Exempt goods).
4. What Happens If Turnover Crosses Rs. 40 Lakh?
- Apply for GST registration within 30 days.
- Start charging GST on sales.
- File GST returns as per rules.
5. What If Turnover Falls Below Rs. 40 Lakh in the Next Year?
- You can apply for GST cancellation if turnover stays low.
- Approval is required from GST authorities.
6. Quick Decision Guide: Do I Need GST?
- Selling within my state and turnover below Rs. 40 lakh: No GST required
- Selling to other states: GST required
- Selling GST-exempt goods only: No GST required
- Turnover crosses Rs. 40 lakh: GST required
Note: D2N.in does NOT track or enforce GST compliance. Vendors must verify their own GST obligations and consult a
tax professional if needed.