GST · 26 June 2026
Aggregate Turnover (AATO): What Number Decides GST Registration?
Aggregate turnover, often shown as AATO (annual aggregate turnover), is the single number GST uses to decide whether you must register and which schemes you can use. Section 2(6) of the CGST Act defines it as the total value of all taxable supplies, exempt supplies, exports, and inter-state supplies of all persons holding the same PAN, computed across India, but excluding the GST itself (CGST, SGST, IGST, and cess) and the value of inward supplies taxed under reverse charge. Registration becomes mandatory once aggregate turnover crosses ₹20 lakh for service providers (₹10 lakh in some special-category states) or ₹40 lakh for a supplier of goods only (₹10 lakh in special-category states, and ₹20 lakh in states that opted out of the ₹40 lakh threshold). Because the test is PAN-level and includes exempt and inter-state supplies, businesses that track only taxable sales often cross the line without realising it.
By Mrs. Swapna Patel
Last reviewed
26 June 2026
In this section
Answers
- Aggregate Turnover (AATO): What Number Decides GST Registration?
- What Is GSTR-1, the GST Return of Outward Supplies?
- What Is GSTR-3B, the Monthly GST Summary Return?
- What Is the Time of Supply Under GST, and When Does Tax Become Due?
- Advance Receipt Under GST: When Do You Issue a Receipt Voucher?
- Credit Note vs Debit Note Under GST: When Do You Issue Each?
- What Is GSTR-2B, and Why Does It Now Decide Your Input Tax Credit?
- What Is the Value of Supply Under Section 15 of the CGST Act?
- What Are the GST Rate Slabs in India After the GST 2.0 Reform?
- Exempt vs Nil-Rated vs Zero-Rated Supply: What Is the Difference?
GST registration only kicks in when your taxable sales cross ₹20 lakh.
Under Section 2(6) of the CGST Act the threshold is tested on aggregate turnover, which also adds exempt supplies, exports, and inter-state supplies across every GST registration on your PAN.
What is aggregate turnover (AATO) under GST?
Short answer
Per Section 2(6) of the CGST Act, aggregate turnover is the all-India total of your taxable, exempt, export, and inter-state supplies under one PAN, excluding the GST charged and any inward supplies you pay reverse charge on.
It is the master figure GST uses to decide registration, eligibility for the composition scheme, and several compliance thresholds. It is measured per PAN, so it sums every state registration you hold, not one branch.
- It is a turnover (gross supply value) figure, not a profit figure.
- It is computed on an all-India basis across all your GST registrations sharing one PAN.
- It excludes the tax itself: CGST, SGST, IGST, and cess are stripped out before you measure it.
What turnover triggers GST registration?
Short answer
Registration is mandatory once aggregate turnover crosses ₹20 lakh for services (₹10 lakh in some special-category states), or ₹40 lakh for a supplier of goods only (₹10 lakh in special-category states), under Section 22 of the CGST Act.
| Type of supplier | General threshold | Special-category states |
|---|---|---|
| Services (or goods + services) | ₹20 lakh | ₹10 lakh |
| Goods only | ₹40 lakh | ₹10 lakh (special-category states); ₹20 lakh (states that opted out of ₹40 lakh) |
Thresholds under Section 22, CGST Act and Notification 10/2019-Central Tax. The ₹40 lakh goods threshold has conditions and is not adopted uniformly by every state; special-category states are a defined, changing list, so confirm your state with CBIC before relying on a row.
What does aggregate turnover include and exclude?
Short answer
It includes taxable, exempt, export, and inter-state supplies on your PAN; it excludes the GST and cess charged, and the value of inward supplies on which you pay tax under reverse charge.
| Counts toward AATO | Does not count |
|---|---|
| Taxable supplies | CGST, SGST, IGST, and cess charged |
| Exempt and nil-rated supplies | Inward supplies you pay reverse charge on |
| Exports and zero-rated supplies | |
| Inter-state supplies under the same PAN |
The inclusion and exclusion list from Section 2(6), CGST Act. Note that exempt and export supplies count toward the threshold even though they carry no output tax.
Why does the PAN-level figure catch people out?
Short answer
Because it adds supplies many sellers ignore, exempt income, exports, and turnover from a second state registration, so a business tracking only its taxable sales can cross ₹20 lakh without noticing.
- Exempt supplies count: rental or interest income that carries no GST still pushes you toward the threshold.
- Exports count: a freelancer's foreign-client income is part of aggregate turnover even when it is zero-rated.
- Multiple registrations add up: two state GSTINs on one PAN are summed, not measured separately.
- Why it matters: cross the line unregistered and you owe tax from the date you should have registered, plus interest, so the aggregate view is the one to watch. Once registered, issue a compliant pakka bill on every taxable supply.
References & related
Primary sources
- Section 2(6), Central Goods and Services Tax Act 2017 (aggregate turnover) — India CodeDefines aggregate turnover as PAN-level, all-India, excluding taxes and inward RCM supplies.
- Section 22, CGST Act 2017 (persons liable to register) — India CodeThe turnover thresholds for mandatory registration, including special-category states.
- Notification 10/2019-Central Tax — CBICThe ₹40 lakh registration threshold for suppliers engaged exclusively in goods.
Last reviewed: 26 June 2026