What is annual aggregate turnover?
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.
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’.
Thus, aggregate turnover simply put, 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 all India basis;
- Excludes taxes.
Why is annual aggregate turnover important?
- To determine whether a taxpayer is liable to obtain registration under GST or not;
- To determine whether or not a taxpayer would qualify for the composition scheme;
- To determine whether a taxpayer is eligible for quarterly return, monthly payment scheme;
- To determine whether a taxpayer is liable to furnish annual accounts and reconciliation statement in GSTR 9C.
- 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 dynamic QR code or not.
Therefore, AATO is one the most fundamental variable in the GST regime which decides applicability or non-applicability of various provisions of the law.
Recent functionality released on GSTN
The GSTN has recently released a new functionality on the portal with regards to the AATO. The taxpayers can now view their AATO on the dashboard after they login.
This functionality helps the taxpayer to view their year-to-date AATO on their dashboard at any given point in time. The AATO is computed from aggregating the turnover declared in the GSTR 3B filed by the taxpayer for the year. Not only for the current year, AATO for the previous year is also visible on the dashboard to the taxpayer.
Additionally, the taxpayers now have an option to get the turnover updated as well in case they believe that the turnover reflected on the portal is different than the turnover as per books. Any updation done by any one GSTIN under the umbrella of a single PAN will reflect in the AATO for all the GSTINs under the same PAN. However, the modification of turnover can be done only twice within one month; post which the turnover shall be sent to the jurisdictional officer who will also be able to amend the turnover, if required.
AATO is a crucial information which assists the taxpayer in determining its obligations and rights under the GST law. The move of reflecting AATO on the portal itself is an appreciable step towards transparent governance. AATO and the implications arising due to non-compliance of the provisions are a bone of contention and may result in litigations, for eg. in case an assessee opts for composition scheme basis the turnover in his books, the authorities could challenge the same on the premise that the turnover of the taxpayer exceeds the stipulated limit and hence composition scheme is not available. However, now that the AATO will be a transparent information available to the assessee and the officers, the probability of disputes and litigations is minimal.
The GST portal was flinching when it was launched; however, the Government has ensured that over the years the portal is made robust and reliable with minimal glitches possible. Various functionalities launched on the portal has further made it even more helpful for a common taxpayer. The GSTN needs to be appreciated for their continuing efforts on enhancing the user experience and making the portal smooth. This could also be an example for the new Income Tax portal which is enduring a backlash from the entire country on account of the technical glitches that it is facing. Though it may take some time, the portal will stabilize and start functioning soon.
You can also read about the GST Returns for September 2021. Do let us know in comments if you find them helpful. We are welcome to suggestions.