IGST OR CGST/SGST

[Bibhu Tripathy]

Dear experts

kindly clarify
there is differential value arising during the reconciliation between Profit and loss account income and GSTR 3B. The GST demand will be IGST or CGST/SGST

[Ganeshan Kalyani]

Sir, you have to find out the entry passed in books that is not considered in GSTR-3B. The entry would reflect the customer location, GSTIN etc based on which you can determine IGST or CGST + SGST.

[Bibhu Tripathy]

no entry in the books.

[KASTURI SETHI]

Sh.Bibhu Tripathy Ji,

In the event of 'no entry', you are requested to elaborate your query. What is the reason for mismatch ? You will have to justify the difference to the department.What is the reason for 'no entry' in books of account ?

[Ganeshan Kalyani]

Sir, when sale invoice is raised the taxable value goes to revenue account and tax/GST payable amount goes to current liability account. So, if you consider comparing taxable value in 3B with revenue in P&L then the turnover should match. Or look for any journal entry passed which may cause difference.

AI Summary

Determination of IGST or CGST/SGST depends on customer location and GSTIN, reconcile invoices and ledger entries. Determine IGST versus CGST/SGST by reference to the customer location and GSTIN on the sales invoice. Taxable value posts to revenue and the tax component to a current liability; reconcile GSTR 3B by tracing invoices and any journal entries. If no book entry exists, investigate, document the reason for the mismatch, correct accounting entries, and be prepared to justify the difference to the tax authority.