Turnover Certificate

This piece of writing revolves around everything to know in depth about turnover certification. It’s a topic that relates to a particular target audience, and readers are interested to go through the details to understand the intricacies.

A turnover certificate is a factual declaration that attests to the entity’s turnover by the standards. The turnover certificate in India reassures users that the company entity’s turnover during a given period is accurate. The Chartered Accountant issues a turnover certificate. This document attests to the applicant’s organisation’s entire annual turnover.

Depending on the needs, the turnover may last one or more years. This transfer is made under the applicant’s name and not the name of a group or sister organisation.

It should be noted that under NOTIFICATION NO. 31/2021 – CENTRAL TAX, registered individuals with aggregate turnover up to ₹2 crores. in F.Y. 2020–21, are exempt from filing annual returns for F.Y. 2020–21, and individuals with aggregate turnover up to ₹5 crores are exempt from filing reconciliation statements. Both requirements depend on the total turnover amount for the fiscal years 2020–21.

Additionally, GSTR-9C mandates comparing turnover reported in an annual return with turnover reported in audited financial statements (GSTR 9).

We may see various terms relating to turnover being alluded to at different locations in the G.S.T. regime. To help readers understand the meaning and consequences of each phrase and its use, we have examined all of these terminologies in this article.

  • Note 1: As defined in Section 2(6), “aggregate turnover” refers to the total value of—
  • all taxed products (excluding the value of inward supplies on which Tax is payable by a person on a reverse charge basis),
  • exempt products, which includes a host of them
  • exports of products, services, or both;
  • Interstate transactions involving people with the same Permanent Account Number should be calculated on an all-India basis but without including GST and cess.
  • Note 2: According to Section 2(112), “turnover in State” or “turnover in Union territory”

Describes the total value of—

  • all taxed products (excluding the value of inward supplies on which Tax is payable by a person on a reverse charge basis)
  • exempt supplies produced by a taxable person inside a State or Union territory;
  • exports of products, services, or both;
  • The taxpayer excludes GST and cess from interstate supplies of goods, services, or both made from inside the State or Union territory.
  • Note 3: Total Turnover Adjusted [Rule 89(4)(E)]

denotes the whole amount of the value of—

  • A State’s or a Union territory’s turnover, as defined by Section 2(112), excludes the turnover of services; and
  • The turnover of non-zero-rated provision of services and zero-rated supply of services as calculated by Rule 89(4)(D), except—
  1. The value of exempt goods and services other than zero-rated; and
  2. The volume of supplies for which a refund is requested under Section 89(4A) or (4B)**, or both, if applicable, during the relevant period. The claim’s filing period is referred to as the relevant period.

*Rule 89(4A): This states that in the case of supplies received where the supplier has benefited from the Government of India, Ministry of Finance, notification No. 48/2017-Central Tax dated 18th October 2017 printed in the Gazette of India, Extraordinary, Part II, section 3, sub-section I vide number G.S.R. 1305(E), dated the 18th October 2017, reimbursement of the input tax credit, taken full advantage in regard of other inputs or input services used in trying to make zero.

** Rule 89(4B): In the case of supplies received on which the supplier has taken advantage of the refund of input tax credits taken in respect of inputs received under the prescribed notices for goods to be exported and the input tax credits taken in respect of other inputs or input services taken in respect of such export of goods to the large extend used in making such exported goods, shall be granted.

What Details Are Going To Be On The Turnover Certificate?

A turnover certificate, although a factual statement, is a dependable document about business transactions within the stipulated period. Although responsible authorities issue such certificates, such document can be revised depending on the resource transactions being made within any particular month within a financial year. Figures mentioned on turnover certificates are often approximated, and auditors are requested to note the same. 

The turnover certificate details are driven as per the business requirements. However, most precisely, the turnover certificate relates to one particular organisation, which has a separate book of accounts at any time. No sister organisations or business subsidiaries can be included while working on one single turnover certificate.

The requirements and the reason the turnover certificate is being prepared will determine the contents of the turnover certificate in India. The following details are included in a fundamental turnover certificate:

  • The name and information about the company entity
  • Registration information
  • The period used to calculate the turnover
  • The turnover certificate’s objective
  • Information about the working professional
  • UDIN

How Does One Go About Getting A Turnover Certificate?

In India, obtaining a turnover certificate is a pretty straightforward process. However, blog readers are requested to understand every detail related to the same. Please read the following to understand a step-by-step approach:

  • Submit the documents by the Checklist.
  • The CA verifies the documents.
  • The turnover certificate’s draught version is distributed.
  • The Chartered Accountant issues a final certified copy when the draught has been authorised.

Issuance of a turnover certificate, however, needs to be done after a stringent audit has been put in place. In case of discrepancies, experts in the field suggest that accounting adjustments must be made.

What Locations Call For The Turnover Certificate?

Anyone seeking confirmation of the turnover of the speculative entity must present a turnover certificate. Here are a few scenarios in which the turnover certificate may be necessary.

  • For Participate in bids by various businesses, local governments, and institutions.
  • It is also necessary for loan reasons in banks and other financial institutions.
  • A project or business, whether new or old, must also be funded by investors.

After going through the above, hope the readers will have a fair idea on the pretext of issuing a turnover certificate. However, as per norms, turnover certificates can include details of subsidiary businesses if a parent list of profit and loss statements and a balance sheet is being reflected. 

On the whole, for business owners, we request them to go through all the clauses associated and take professional help to build up a turnover certificate.

In India, Who Has The Authority To Certify A Turnover?

In India, a turnover certificate is a document that guarantees to the user the amount of money a business entity has made in sales. The turnover certificate is issued by a practising chartered accountant specialising in doing so.


We hope all the queries can be resolved through this article. Contact one of the best legal firms, i.e. Vakilsearch, your trusted legal partner in India, for information regarding the turnover certification.


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