Annual Aggregate Turnover (AATO) computation for FY 2021-22
Annual Aggregate Turnover (AATO) Computation for FY 2021-2022
The Goods and Service Tax Network on 2nd May 2022, has notified a new functionality of Annual Aggregate Turnover (AATO) for the FY 2021-2022 which has now been made live on taxpayers’ dashboards with some features. The taxpayers can now view their AATO on the dashboard after they log in.
Annual Aggregate Turnover (AATO)
Annual Aggregate Turnover (AATO) is a significant variable in the GST regime. It is the total annual turnover of one legal entity which may be registered in multiple states.
Aggregate turnover is the aggregate value of all taxable supplies, 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 an all-India basis but excludes central tax, State tax, Union territory tax, Integrated tax, and cess.
Aggregate Turnover under GST Law
As per Section 2(6) of the CGST Act, 2017, aggregate turnover has been defined as ‘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’.
From the definition we can conclude that Annual Aggregate Turnover (AATO) means;
- All taxable supplies, exempt supplies, exports, and inter-state stock transfers;
- Excludes inward supplies on which tax under reverse charge mechanism was paid;
- Computed on an India basis;
- Excludes taxes.
Significance of Aggregate Turnover
The main term for GST registration is the aggregate turnover. As per GST law, any entity with an annual turnover of above Rs.20 lakh can opt out of registering GST. For special category states excluding the State of Jammu and Kashmir entities with an annual turnover of above Rs.10 lakh can opt out of registering GST.
The GSTN shall calculate the accumulated turnover by taking together the value in respect of the activities carried out by all the entities of the concerned person on a pan-India basis.
Importance of Annual Aggregate Turnover
- Annual Aggregate Turnover is important to determine whether a taxpayer is liable to obtain registration under GST or not;
- Annual Aggregate Turnover is used to determine whether or not a taxpayer would qualify for the composition scheme;
- AATO is used to determine whether a taxpayer is eligible for a quarterly return, monthly payment scheme;
- Annual Aggregate Turnover is also useful to determine whether a taxpayer is liable to furnish annual accounts and reconciliation statements in GSTR 9C.
- Annual Aggregate Turnover is helpful to determine whether a taxpayer is liable to raise e-Invoices
- To determine whether a taxpayer who is engaged in B2C supplies is liable to issue a dynamic QR code or not.
Therefore, AATO is one the most fundamental variable in the GST regime which decides the applicability or non-applicability of various provisions of the law.
Recent Functionality Released on GSTN for FY 2021-2022
The functionality of AATO for the FY 2021-22 has now been made live on taxpayers’ dashboards with the following features:
- The taxpayers can view the exact Annual Aggregate Turnover (AATO) for the previous Financial Year (FY).
- The taxpayers can also view the Aggregate Turnover of the current FY based on the GST returns filed to date.
- The taxpayers have also been provided with the facility of turnover updating case taxpayers feel that the system calculated turnover displayed on their dashboard varies from the turnover as per their records.
- This facility of turnover update shall be provided to all the GSTINs registered on a common PAN. All the changes by any of the GSTINs in their turnover shall be summed up for computation of Annual Aggregate Turnover for each of the GTINs.
- The taxpayer can amend the turnover twice within May 2022. Thereafter, the figures will be sent for review by the Jurisdictional Tax Officer who can amend the values furnished by the taxpayer wherever required.
Calculation of Aggregate Turnover in GST Registration
The Aggregate Turnover of the year shall be the sum of the following:
- Value of all taxable supplies
- Value of all exempt supplies
- Value of export supplies
- Value of inter-state supplies
- Turnover of all entities of a person under the same PAN