What is Annual Aggregate Turnover under GST?
What is Annual Aggregate Turnover?
Annual Aggregate Turnover (AATO) is an important element of GST. It refers to the "total annual revenue" of a single legal business that may be registered in many states.
According to Section 2(6) of the CGST Act, 2017, aggregate turnover is defined as the total value of "all taxable supplies" (excluding the value of inward supplies on which a person pays tax on a reverse-charge basis), exempt supplies, exports of goods or services or both, and interstate supplies of persons with the same Permanent Account Number, computed on an all-India basis but excluding the central tax, state tax, union territory tax, integrated tax, and cuss.
Simply put, aggregate turnover means:
All taxable, exempt, and export supplies, as well as interstate stock transfers;
Excludes inbound supplies for which a reverse-charge mechanism was used to pay the tax;
Calculated on a pan-India basis;
Taxes are not included
Significance of annual aggregate turnover.
AATO is one of the most important variables in the GST system, determining whether specific sections of the legislation are applicable. The following sums up its significance:
yes for spikes in inflation and living costs
To assess whether a taxpayer is required to register for GST;
Determining whether a taxpayer is eligible for the composition scheme;
To see if a taxpayer qualifies for the quarterly return and monthly payment system;
To see if a taxpayer is required to file GSTR 9C yearly accounts and reconciliation statements.
To see if a taxpayer is required to provide e-Invoices.
Determine whether or whether a taxpayer involved in B2C supply is required to provide a dynamic QR code.
How can you calculate aggregate turnover?
The following formula may be used to compute aggregate turnover:
Value of all (taxable supplies+Exempt supplies+Exports+Interstate supplies) – (Taxes+Value of inward supplies+Value of supplies taxable under reverse-charge + Value of non-taxable supplies) of a person having the same PAN (Permanent Account Number) across all his business entities in India
When computing cumulative turnover, the following charges must be excluded:
Taxes imposed under the CGST, SGST, or IGST Act
Taxes due under the reverse-charge method
Inward deliveries of commodities and services are valued at a certain amount.
Non-taxable supply of goods or services such as alcohol, gasoline, and so on.
What's the Difference Between Aggregate Turnover and State Turnover?
The Aggregate Turnover is calculated for a single PAN on all India basis, whereas turnover in a state is the statewise calculation of turnover for a PAN.