Tax on expenses debited in p&l

[THYAGARAJAN KALYANASUNDARAM]

Dear expert,

We have to declare all expenses which is booked as expenses in profit & loss account monthly basis as follows

1. Procurement of goods / services from registered person

2. Procurement of goods / services from unregistered person

3. Even if all the expenses should declare in the return which is unrelated to GST tax?

Example: Salary, electricity, interest,etc.

Thanks in advance.

[KASTURI SETHI]

As per Section 15 of CGST Act, all incidental expenses are to be included in the transactional value for the purpose of payment of GST. Salary is not incidental expense. Salary is already accounted for towards cost of product. Interest is to be included.

[Himansu Sekhar]

Non gst supply values to be declared, not the expenses on salary.

[Himansu Sekhar]

But which return, please specify.

[KASTURI SETHI]

Sh. Himanshu Share Ji,. I think you want to say expenses of salary and not on salary. Pl confirm.

[Himansu Sekhar]

Sir, the question is not clear, i think he is asking about filing of return. That's why I opine that salary expenses of own employees will not be declared in the return.

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

One of my friend said all the expenses which is debiting in profit and loss account should be declared in gst return after considering RCM.

Generally we use to prepare the books of accounts every year at the time of filing IT return.

Whereas as per GST we should update the monthly accounts and to see whether the tax is suffered or not. If not we have to pay RCM as per 9(3) & 9(4). Even if the expenses under non gst is also to be declared in the return?

AI Summary

GST reporting of expenses requires declaring taxable supplies and applying reverse charge; salaries are not GST-reportable. GST returns must reflect expenditures that constitute taxable supplies or trigger reverse charge; not all P&L expenses are GST-reportable. Incidental expenses are includible in transaction value, but employer salaries are excluded as incidental; interest related to supplies is includible. Purchases from registered suppliers follow normal reporting, while procurements from unregistered suppliers may attract reverse charge. Non-GST supplies are not declared as taxable values, but monthly review is required to determine RCM obligations and input tax reporting.