GSTR 9C UNDER GST ACT

[ASHISH SINGLA]

Sir foreign exchange gain or loss not taxable under CGST ACTRULES 34

It means it is not a part of sales why it will be added or deducted in GSTR 9C

[Rajagopalan Ranganathan]

Sir,

As per the instruction given in Form GSTR-9C with regard to Table 5N of the said form "Any difference between the turnover reported in the Annual Return (GSTR-9) and turnover reported in the audited Annual Financial Statement due to foreign exchange fluctuations shall be declared here. This means if there is any change in the value of turnover shown GSTR-9 and GSTR-9C due to foreign exchange fluctuations is to be shown here. It does not require you to show the gains/loss made by you due to foreign exchange fluctuations.

[Rajendra Prasad]

Dear Mr Ashish,

The following is the test of the Technical Guide on GSTR-9C by ICAI for Point No. 5N .

Please refer Page 67 of the Technical Guide on GSTR 9C. The reason given by the ICAI is self explanatory.

Sl. No. 5N.

Adjustments in turnover due to foreign exchange fluctuations 5N Adjustments in turnover due to foreign exchange fluctuations (+/-) Table No. Instructions 5N Any difference between the turnover reported in the Annual Return (GSTR-9) and turnover reported in the audited Annual Financial Statement due to foreign exchange fluctuations shall be declared here. Introduction Forex Transactions are accounted in the books of accounts based on Accounting Standard 11 whereas Rule 34 of the CGST Rules require

1. The value of taxable goods to be determined on the basis of the exchange rate notified under Section 14 of the Customs Act;

2. The value of taxable services is to be determined on the basis of the applicable rate of exchange determined as per generally accepted accounting principles for the date of time of supply of such services in terms of Section 13 of the CGST Act Since the exchange rates applied to forex amounts for accounting purposes are different from the exchange rates applied for determining the value of taxable goods and services, there could be a difference between the turnover recorded in the books when compared with the turnover declared for the purpose of GST returns.

[PAWAN KUMAR]

dear sir,

as per my view, your AFS is containing the details of FE gain or loss in GSTR-9C you need to show the details net of gain/loss in FE account which hits your AFS turnover to derive the actual taxable turnover as compared to annual return GSTR-9.

[Guest]

It has to be disclosed in table 5F (as per description mentioned in table 5F and its instructions)

[PAWAN KUMAR]

yes but relevant column is 5N. as per my view you need to fill in 5N.

AI Summary

Foreign exchange fluctuations reporting: declare turnover differences between annual GST return and audited financial statements. Table 5N of GSTR 9C requires reporting any difference between turnover in the annual GST return and turnover in the audited financial statements that is attributable to foreign exchange fluctuations, rather than the standalone forex gain or loss. The discrepancy arises because accounting for forex uses accounting principles for foreign currency transactions while GST valuation applies prescribed exchange rate rules, producing possible variances that must be disclosed as turnover adjustments in the reconciliation.