Addition of unaccounted supplies in the Returns

[Rajan Atrawalkar]

My client’s POB was visited by DGGI staff. After the search is over they asked to pay 5 lakh towards unaccounted sales/supplies verbally and accordingly DRC-03 was filed. Though this is all without authority of law the dealer do not want to contest any litigation neither apply for refund. We have also received closer report from the DGGI office on the basis of voluntary payments. How to show this turnover in GST returns? As tax is already paid through DRC-03 how to offset the additional liability? How to show all this in GSTR-9 and 9C? Can we file returns with regular turnover as per books without adding this turnover as this is fictitious turnover? We have not incorporated this turnover in books of accounts.

AI Summary

Client Settles INR 5 Lakh Tax Demand via DRC-03; Advised to Record in Books and GST Return to Avoid Issues. A client faced a demand from tax authorities to pay INR 5 lakh for unaccounted sales, which was settled through a DRC-03 form without legal proceedings. The client is unsure how to reflect this in GST returns, as the turnover was not recorded in the books. Respondents advised that since the tax was voluntarily paid, it should be recorded in the books and shown in GST returns to avoid discrepancies. They warned of potential income tax implications and suggested consulting a Chartered Accountant for proper reconciliation. The discussion highlighted the complexity of handling such tax adjustments and the need for expert advice.