Difference in Total Turnover As Per Books & GSTR-9C

[NISHANT SHAH]

Dear Experts,

My client had incurred expense of Quality difference on account of export to foreign buyer and booked these expenses in P&L account as a part of sales and likewise Rate Difference expense was also incurred and booked in similar manner. It has also incurred Insurance expense which is paid in general on export turnover and debited in Schedule of Sale accounts in P&L Account and that's why difference is arrived at for all these 3 expense while reconciling turnover in GSTR-9C. My client had not issued Credit Note to foreign buyer against above export sales and just made journal entry to square off foreign buyer account and booked exps. in P&L in Sales Account.

Now my question is how this difference is to be disclosed in Annual Return (GSTR-9) & Reconciliation Statement (GSTR-9C)??

1) If it is to be disclosed in GSTR-9 then in which table should I include them? By doing so, there would be no difference in unreconciled total turnover in GSTR-9C.

2) Whether it would be justified if we include difference in GSTR-9C in Unreconciled Total Turnover?

Thanks in advance all experts..

AI Summary

Client Guides on Disclosing Export Discrepancies in GSTR-9 and 9C; Focus on Table 5O Adjustments A client faced discrepancies in their total turnover as per their financial books and the GSTR-9C due to expenses related to quality differences, rate differences, and insurance on exports. These expenses were recorded in the profit and loss account but not addressed with credit notes. The client sought advice on disclosing these differences in the GSTR-9 and GSTR-9C. Experts suggested verifying records and ensuring books match GST figures. It was advised to report non-taxable expenses in specific tables of GSTR-9 and 9C, with adjustments for export discrepancies in Table 5O of GSTR-9C.