Annual Aggregate Turnover Under GST: What to Include and Why It Matters

Annual aggregate turnover GST explained: PAN-wide computation, what to include and exclude, and thresholds for e-invoicing, QRMP, and composition.

What Is Annual Aggregate Turnover and Why It Matters

Annual Aggregate Turnover (AATO) under Section 2(6) of the CGST Act is computed on a PAN-India basis — across all GSTINs of the same legal entity — and includes the value of all taxable, exempt, nil-rated, and export supplies. AATO is the threshold variable for almost every key GST rule: registration (Rs. 20 lakh / 40 lakh), composition scheme (Rs. 1.5 crore / 75 lakh), QRMP (Rs. 5 crore), e-invoicing (currently Rs. 5 crore), and audit. Getting AATO wrong by even Rs. 1 means applying the wrong rules.

What to Include in AATO

AATO includes: all taxable supplies (outward), all exempt and nil-rated supplies, all exports (including supplies to SEZ), and all interstate supplies. It is computed on a pan-India basis for the same PAN, summing turnover across every state and every GSTIN. Goods returned during the year reduce AATO. The figure used is always the taxable value before GST, not the gross invoice value. Most businesses compute AATO incorrectly by adding GST or by missing one state branch.

What to Exclude From AATO

AATO specifically excludes: inward supplies on which tax is paid under reverse charge, CGST plus SGST plus IGST and cess collected from customers, the value of inward supplies, and the value of non-GST supplies like petrol and alcohol for human consumption. Discounts shown on the face of the invoice also reduce AATO. Misclassifying RCM purchases as outward supplies is a recurring mistake for hospitality and legal services businesses.

Key Threshold Triggers in 2024-25

The current thresholds are: GST registration at Rs. 20 lakh (Rs. 10 lakh for special category states) for services and Rs. 40 lakh for exclusive goods suppliers; composition scheme at Rs. 1.5 crore (Rs. 75 lakh for special category states); QRMP at Rs. 5 crore; e-invoicing mandatory from Rs. 5 crore from 1 August 2023. Crossing any of these thresholds mid-year requires immediate action — for instance, crossing Rs. 5 crore obliges e-invoicing from the next financial year, while crossing the registration threshold requires registration within 30 days. Tracking projected AATO monthly is therefore not optional.

Tracking AATO Across Branches With BillBabu

BillBabu consolidates outward supplies across every GSTIN under the same PAN, computes rolling 12-month AATO, and forecasts when you will cross the next threshold. The dashboard flags upcoming e-invoicing or composition transitions months in advance so paperwork and software changes can be planned. For multi-branch businesses, this prevents the embarrassment of being caught off-guard by an e-invoicing portal rejection on a Monday morning.

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