E-invoicing has been enabled by the Goods and Services Tax (GST) department and will be required as of August 1, 2023. Taxpayers having an Aggregate Annual Turnover (AATO) of between Rs. 5 crore and Rs. 10 crore are liable for this.
The AATO is the total annual turnover of a single legal entity which may be registered in several states. The GST e-invoicing feature for AATO taxpayers has been updated on the Goods and Services Tax portal.
The term “e-invoice” describes the digital format for creating, sending, and receiving invoices between companies and their clients. It can reduce the chance of errors and abnormalities in human data entry. The standardised electronic format ensures the integrity and accuracy of the invoice data.
Important: GST E-invoicing Mandatory for Taxpayer T.O. Exceeding 5Cr
According to Section 2(6) of the Central Goods and Services Tax Act, 2017, the term “aggregate turnover” encompasses the complete value of all taxable supplies (excluding the value of inward supplies where an individual is liable to pay tax under the reverse charge mechanism), exempt supplies, exports of goods or services (or both), and interstate supplies made by individuals using the same Permanent Account Number (PAN) across the entire nation. It is important to note that the calculation of aggregate turnover is conducted across the country while excluding the central tax, state tax, union territory tax, and local tax.
In the year 2021, an enhanced feature has been incorporated into taxpayers’ dashboards, namely the Goods and Services Tax Number (GSTN), which provides a valuable addition. This feature enables taxpayers to access information regarding their annual aggregate turnover (AATO) for the preceding fiscal year, as opposed to merely categorising turnover into two broad slabs, namely “above” or “up to Rs. 5 crores.”
Moreover, taxpayers now have access to their complete turnover for the current fiscal year based on the returns that have been filed up to the current point in time.
Raise a ticket via the self-service portal if you have any worries about the aggregate yearly turnover (AATO).
