Liquor sale

[KARAN VERMA]

Sir, In case of liquor sale , I have paid state excise duty and VAT.

Now, my question is in GSTR-3B Non GST sale column which value to be mentioned-

1. Only basic value of liquor

2. Basic value plus state excise duty.

Second, Non GST sale figure also used for proportionate ITC reversal, then in such case whether only basic value of liquor sale to be taken or Total value including state excise duty.

[KASTURI SETHI]

Only basic value for both purposes.

Suggestion: No logic of such question which is very much clear.

[KARAN VERMA]

Sir

Actually, department officer forced assesse to include state excise duties amount while mentioning Non GST sale value in GSTR-3B and R1.

That's why I m asking to confirm the same.

[Rajagopalan Ranganathan]

Sir,

As per Section 15 (2) (a) of CGST Act, 2017 "the value of supply shall include -

(a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier.

Therefore the State excise duty and VAT. are to be included in the value of liquor sold and this value is required to be shown in GSTR-3B Non GST sale column.

[KARAN VERMA]

Sir

Whether this value is also to be taken for proportionate reversal of ITC in case of taxable sale and Non GST sale.

[Rajagopalan Ranganathan]

Sir,

My answer to your query is yes. You have to take the value inclusive of State excise duty for the purpose of ITC reversal.

[KASTURI SETHI]

Table No.3.1 (e) of GSTR-3 B stands for Non-GST Outward Supplies. Column no.2 is meant for Total Taxable Value. Now the question arises what value is to be filled in here. Liquor is non-GST Item. GSTR-3-B return is for taxable/exempt/zero rated items under GST and not for Non-GST supplies/goods. When the column is meant for "Taxable Value" of GST goods, how we can post value of non-GST goods against the column of 'taxable value' under GST.

So either it should be left blank or only taxable value under VAT/Central Excise should be filled. If the common portal does not allow to leave it blank, then only basic value/assessable value is to be filled. This is for the purpose of accountal only.

[KASTURI SETHI]

The MAIN purpose to create this column in this return is to ascertain/identify whether the tax payer has correctly EXCLUDED the non-GST items. There are other accountal purposes also but it is certain that it is not related to TAXABLE Value under GST Acts. When the question of tax on non-GST does not arise, why we should talk of valuation i.e . Basic value or invoice value ? In case the party misdeclares any GST item as non-GST then the question of valuation will arise and that too under GST Acts. Pl.note that this column is meant for detection of non-payment of GST in some guise.

[KARAN VERMA]

ok, thanks sir.

AI Summary

Value of supply: include non-GST taxes in reported sale value and use that figure for ITC reversal.
The issue is whether state excise duty and VAT must be included in the GSTR-3B Non-GST sale column and for proportionate ITC reversal. One position holds only basic/assessable value should be shown. Other responses rely on the principle that the value of supply includes taxes and duties levied under other laws if charged separately, requiring inclusion of state excise duty and VAT in the Non-GST sale figure and in the base used for ITC reversal. A practical view treats the column as an administrative control and permits reporting only basic value when necessary.