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

Turnover reconciliation: report export-related non-taxable adjustments in annual return and reconcile them in the reconciliation statement.
Export-related expenses recorded in sales-quality difference, rate difference and insurance-created a mismatch between book turnover and GST returns. The practice was to debit these expenses to P&L without issuing credit notes. For GSTR-9 declare non-taxable/non-GST adjustments in the appropriate non-GST column to reflect books. For GSTR-9C report rate differences under rate/price adjustment rows and report insurance and other export adjustments under the reconciliation row for adjustments not otherwise listed, ensuring Tables P and Q reconcile to the books and documentary verification supports the entries.