What is Turnover?

Turnover, often used interchangeably with revenue or gross sales, is the total amount of income a company generates from its business activities within a specific period. It's the "top-line" figure on the income statement before any costs or expenses are deducted.

Why it Matters for Startups:

Turnover is a primary measure of a startup's size and growth rate. It's a key metric for triggering compliance obligations in India. For example, GST registration becomes mandatory once your annual turnover crosses a certain threshold (e.g., ₹20 lakhs for services). Similarly, the requirement for a tax audit is also linked to turnover.

Example:

A SaaS startup generates ₹25 lakhs in revenue from subscriptions in a financial year. Its turnover is ₹25 lakhs, which means it is now required to register for and comply with GST.