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Published on:
March 21, 2023
By
Harshini

Aggregate Annual Turnover (AATO) under GST

Aggregate Annual Turnover (AATO) is a term used in the Goods and Services Tax (GST) system to determine the eligibility and applicability of certain provisions under GST law. AATO is the total value of all taxable supplies, exempt supplies, exports of goods and/or services, and inter-state supplies of a business in a financial year. It includes the value of supplies made by a taxpayer on their own account as well as on behalf of their principals.

The AATO is an important factor in determining various provisions under GST, such as the threshold limit for GST registration, composition scheme eligibility, and the requirement for the audit of accounts.

The threshold limit for GST registration varies based on the nature and location of the business. For businesses operating in a single state or union territory, the threshold limit is Rs. 20 lakhs AATO, while for businesses operating in certain northeastern and hilly states, the threshold limit is Rs. 10 lakhs AATO.

Under the composition scheme, businesses with an AATO of up to Rs. 1.5 crore can opt for a simplified compliance and payment process by paying a fixed percentage of their turnover as tax.

Businesses with an AATO of more than Rs. 2 crore are required to get their accounts audited by a chartered accountant or a cost accountant.

It is important for taxpayers to accurately calculate their AATO and comply with the relevant provisions under GST law.

Aggregate Annual Turnover (AATO) under GST FAQs

Q: What is Aggregate Annual Turnover (AATO) under GST?

A: Aggregate Annual Turnover (AATO) is the total value of all taxable supplies, exempt supplies, exports of goods and/or services, and inter-state supplies of a business in a financial year. It includes the value of supplies made by a taxpayer on their own account as well as on behalf of their principals.

Q: Why is AATO important under GST?

A: AATO is an important factor in determining various provisions under GST, such as the threshold limit for GST registration, composition scheme eligibility, and the requirement for the audit of accounts.

Q: What is the threshold limit for GST registration based on AATO?

A: The threshold limit for GST registration varies based on the nature and location of the business. For businesses operating in a single state or union territory, the threshold limit is Rs. 20 lakhs AATO, while for businesses operating in certain northeastern and hilly states, the threshold limit is Rs. 10 lakhs AATO.

Q: What is the composition scheme eligibility based on AATO?

A: Under the composition scheme, businesses with an AATO of up to Rs. 1.5 crore can opt for a simplified compliance and payment process by paying a fixed percentage of their turnover as tax.

Q: What is the requirement for audit of accounts based on AATO?

A: Businesses with an AATO of more than Rs. 2 crore are required to get their accounts audited by a chartered accountant or a cost accountant.

Q: How can a taxpayer calculate their AATO?

A: A taxpayer can calculate their AATO by adding the total value of all taxable supplies, exempt supplies, exports of goods and/or services, and inter-state supplies made by them in a financial year. The value of supplies made on behalf of their principals should also be included.

Q: Is it mandatory for a taxpayer to register for GST if their AATO is below the threshold limit?

A: No, it is not mandatory for a taxpayer to register for GST if their AATO is below the threshold limit. However, they may voluntarily register for GST if they wish to claim input tax credit on their purchases.

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Updated on:
March 16, 2024