For taxpayers with an Aggregate Annual Turnover (AATO) of between Rs. 5 crore and Rs. 10 crores, the Goods and Services Tax (GST) department has enabled E-invoice and it becomes mandatory from 1st August 2023.
AATO is the total annual turnover of one legal entity which may be registered in multiple states. The Goods and Services Tax portal has updated the e-invoicing facility for the AATO taxpayers.
E-invoice, refers to the digital format of generating, issuing, and transmitting invoices between businesses and their customers. It can reduce the possibility of mistakes or anomalies during manual data entry. The correctness and integrity of the invoice data are guaranteed by the standardised electronic format.
The definition of aggregate turnover in Section 2(6) of the Central Goods and Services Tax Act, 2017 is “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 interstate 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.”
A new feature has been added to the dashboards of taxpayers by the Goods and Services Tax Number in the year 2021. Instead of only being able to see the two slabs of “Above or up to Rs. 5 Cr.,” the taxpayers can now see the exact Annual Aggregate Turnover (AATO) for the prior FY. Based on the returns submitted up to this point, the taxpayers can also view the total turnover for the current fiscal year.
If you have any concerns on Aggregate Annual Turnover (AATO), raise your ticket in the self service portal.
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