Turnover Certificate by CA
A turnover certificate is a chartered accountant’s confirmation of your sales or receipts for one or more financial years. Tender committees, GeM buyers and banks ask for it before they shortlist you or sanction a limit. We certify from your books and GST returns, and every certificate carries an ICAI UDIN.
What it is
Turnover is the total value of what your business sold or billed in a year. A turnover certificate states that figure, year by year, on a chartered accountant’s letterhead, along with the records it was taken from. The reader does not have to dig through your accounts.
For a company, Section 2(91) of the Companies Act, 2013 defines turnover as the gross revenue recognised in the profit and loss account from the sale, supply or distribution of goods, or from services, during a financial year. GST uses a different measure. “Aggregate turnover” under Section 2(6) of the CGST Act, 2017 counts taxable supplies, exempt supplies, exports and inter-state supplies between units with the same PAN, all-India, excluding the GST itself.
The certificate is issued under the ICAI Guidance Note on Reports or Certificates for Special Purposes (Revised 2016). Since 1 February 2019, every certificate signed by a chartered accountant must carry a Unique Document Identification Number (UDIN), and ICAI’s UDIN portal lists “Turnover Certificate” as its own document type.
Who it applies to
You are bidding on a tender or GeM
Government and PSU tenders, including many bids on the Government e-Marketplace (GeM), set a minimum average annual turnover, often over the last three financial years. A CA certificate is the usual proof.
You are raising a bank limit
Banks and NBFCs ask for certified turnover when they sanction, renew or enhance working capital limits. Working capital for small enterprises is often assessed as a share of turnover, so the figure matters.
You are signing up a dealer or a scheme
Manufacturers appointing distributors ask for certified turnover, and so do foreign buyers vetting a new supplier and schemes linked to enterprise size.
Why it matters
Keeps your bid in the race
Tender evaluation is mechanical. If the turnover certificate is missing, unsigned or for the wrong years, the bid is usually knocked out at the technical stage, whatever your price.
Lets the reader verify it
The UDIN lets a buyer or bank check the certificate on the ICAI portal without registering. A number that checks out ends the question.
Makes your figures agree
Your accounts, GST returns and income tax return can show different turnover for honest reasons. In practice, a single credit note or year-end entry can open a gap. We reconcile before signing, so nobody finds a gap later.
Documents required
Accounts
- Audited or finalised financial statements for each year
- Auditor’s report, where accounts are audited
- Trial balance and sales ledger for a current or part year
Tax returns
- GSTR-1, GSTR-3B and GSTR-9 for the years covered (we can bring pending GST returns up to date first)
- Income tax returns and tax audit report, where applicable
- Bank statements for any period not yet audited
About the request
- PAN, GSTIN and constitution documents of the entity
- The tender clause or bank format, word for word
- The years and the basis the requester wants
Which turnover figure to certify
The same business can have three honest turnover figures. The certificate must say which one it uses.
| Basis | Source | Why it can differ |
|---|---|---|
| Books of account | Revenue in the audited or finalised profit and loss account | Follows accounting rules on when revenue is recognised |
| GST returns | GSTR-1, GSTR-3B and GSTR-9 | Aggregate turnover is PAN-wide and includes exempt supplies, exports and supplies between your own GSTINs in different states |
| Income tax return | Turnover or gross receipts in the ITR and tax audit report | Follows the return’s own reporting lines; may differ by year-end entries |
Here is the catch: a tender usually wants turnover from audited accounts, while a GST-linked scheme may want the GST figure. Certify the wrong basis and the certificate comes straight back. We read the requirement first and state the basis in the certificate itself. Take a Faridabad auto-parts maker with units in Haryana and Uttar Pradesh. Its GST aggregate turnover counts supplies between the two GSTINs; its audited accounts do not. Same business, two honest numbers.
How it works
Send the tender clause or bank format
The exact wording tells us which years, which basis and which layout. If there is a prescribed format, we use it as is.
Share your accounts and returns
Upload financial statements, GST returns and ITRs for the years asked. Anything missing comes back to you in one list.
Let us reconcile the figures
We tie books, GST and ITR turnover together and explain any difference in a working note you keep on file.
Receive the signed certificate with UDIN
A practising chartered accountant signs it and generates the UDIN on the ICAI portal. You get a signed copy ready to upload with the bid or loan file.
Timelines
Years covered
Tenders commonly ask for the last three completed financial years. A Ballabgarh trading firm bidding this October would usually show FY 2023-24, 2024-25 and 2025-26, so the accounts closed on 31 March 2026 need to be final.
UDIN generation
ICAI allows a UDIN to be generated within 60 days of signing. We generate it at signing, so the certificate is verifiable the day you receive it.
Bid closing date
Work back from the bid’s closing date. With audited accounts and returns in hand, a certificate is usually ready within a couple of working days.
What happens if the certificate is wrong
Bid rejected
A certificate for the wrong years, on the wrong basis or without a UDIN can disqualify a technically sound bid. There is rarely a second chance once bids are opened.
Mismatch with GST data
Buyers and lenders can see GST return data. If the certified figure doesn’t line up and no reconciliation is given, expect questions or a refusal.
Loan file held up
A credit team that cannot trace turnover to audited accounts will send the file back, delaying the sanction or renewal.
Frequently asked questions
Who can issue a turnover certificate?
A chartered accountant holding a certificate of practice from ICAI issues it, with a UDIN generated on the ICAI portal. The certificate shows the CA’s membership number and firm registration number. Tender committees and banks check these details and can verify the UDIN online without registering. Our certificates are signed by a practising chartered accountant, so they meet this test.
Is UDIN compulsory on a turnover certificate?
Yes. ICAI made UDIN mandatory for all certificates signed by chartered accountants from 1 February 2019, and “Turnover Certificate” is a listed document type on the UDIN portal. The number has 18 characters: the year, the CA’s membership number and a random code. Every turnover certificate we issue carries one, so the buyer or bank can check it in a minute.
Should the certificate use GST turnover or turnover from the books?
Use the basis the tender or bank asks for; if it is silent, audited accounts are the usual choice. GST aggregate turnover under Section 2(6) of the CGST Act is PAN-wide and includes exempt supplies and exports, so it can differ from book revenue. We state the basis in the certificate and keep a reconciliation, so either figure can be explained.
Can you certify turnover for the current year before the audit?
Yes, a certificate can cover a part year or an unaudited year, based on the trial balance, sales ledger, GST returns and bank statements. The certificate then says clearly that the figures are unaudited and gives the period. Many banks accept this for a mid-year limit review. When the audit is done, we can issue a fresh certificate on audited figures.
What is an average annual turnover certificate?
It shows turnover for each of the years asked, usually the last three completed financial years, and the average of those years. Tenders often set their eligibility on this average rather than one year’s figure. We show each year separately and the average below it, so the evaluation committee can see both at a glance and match them to your audited accounts.
Do startups have to meet tender turnover conditions?
Not always. Under Rule 173(i) of the General Financial Rules, 2017, DPIIT-recognised startups can get relaxation of prior turnover and prior experience criteria in public procurement, subject to meeting quality and technical specifications. Read the bid document, since it states whether the relaxation applies. If it does not, a turnover certificate is still needed, and we can prepare it from your accounts.
Does turnover decide whether a business is micro or small?
Yes, along with investment. From 1 April 2025, a micro enterprise has investment up to ₹2.5 crore and turnover up to ₹10 crore; a small enterprise up to ₹25 crore and ₹100 crore; a medium enterprise up to ₹125 crore and ₹500 crore. Udyam registration picks these figures from your returns, so a correct turnover record keeps your classification right.
Is a turnover certificate needed for a bank loan?
Often, yes. Banks use certified turnover to size working capital, and RBI’s MSME FAQs say working capital for small enterprises is computed on at least 20% of estimated turnover, for limits up to ₹5 crore. A clean, reconciled certificate helps the credit team move quickly. We can pair it with a project report and CMA data when the bank asks for a full proposal.
Can the certificate be issued without visiting your office?
Yes. You share accounts and returns online, we reconcile them and send a draft for your check, and you receive the signed certificate digitally with the UDIN already generated. Where a tender asks for a physical original, we can send one from our Faridabad office. Businesses across India use this process, so location is not a barrier.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
There is no government fee for a turnover certificate.
Ready to begin?
Send us the tender clause or bank format with your accounts, and we will return a reconciled, UDIN-verified turnover certificate before your deadline.