turnover difference in gst when compare with income tax returns

[ShankarDurgaVaraPrasad P]

Good morning to one and all,

This is shankar. For the FY 17-18 & FY 18-19 we reported turnover more than in income tax returns when compared to GST returns. This is mainly for the purpose of getting loans from banks/financial institutions.

Actually, the turnover mentioned in GST returns is correct. unfortunately , my financial statements and income tax returns scrutinized by GST officials and they find this turnover difference.

And, now they issued GST DRC-01 for the difference turnover.

Is there any chance for getting relief form this liability.

kindly reply for this.

Thanks in advance

[KASTURI SETHI]

Sh.Shankar Ji,

How much amount of GST is involved ?

[ShankarDurgaVaraPrasad P]

Good evening shri kasturi sethi ji,

FY 17-18 = GST LIABILITY =163690

diff turnover 909392*18%

FY 18-19 = GST LIABILITY = 111962

diff turnover 622010*18%

In these above two financial years, the differetial turnover showned as other income, sale of scrap and jobworks.

thank you

[KASTURI SETHI]

GST is applicable on both supplies. Had there been non-GST supply or exempted supply, you could have saved GST on differential amount. Now there is no escape route. However, I shall try trace out any case law on similar issue.

[ShankarDurgaVaraPrasad P]

thank you sir

AI Summary

Turnover discrepancy between tax filings triggers GST demand; taxable status depends on whether supplies were exempt or non-GST. GST officials issued a DRC-01 for turnover differences after finding higher turnover in financial statements and income-tax filings; the taxpayer recorded the differential as other income, sale of scrap and jobwork receipts, and advisers indicated GST applies unless those receipts are demonstrably non-GST or exempt supplies.