Taxability of Turnover based on GSTR-7

[Deepak Bubna]

Hello everyone,

Can a dealer be brought to tax under CGST Act for suppressed turnover even though no GST TDS was claimed or so to say, the dealer did not accept such TDS entry and hence no amount landed in his cash ledger to set off the same against his tax liability. If any ruling/judgement exists on this subject, that will help .

Thanks in advance

Deepak Bubna

[Padmanathan KV]

Has the dealer actually made supply?

The levy of tax under section 9 read with section 7 is independent of TDS provisions. If supply has been actually made by the dealer, just because TDS entry is not accepted will not bring him out of the levy and vice-versa.

[Shilpi Jain]

Acecptance/non-acceptance of GSTR-7 has no relevance. Instead prove that no supply or such transaction has taken place in order to stay out of GST liability.

AI Summary

Levy of tax independent of TDS; acceptance of GSTR-7 does not prevent GST liability; liability depends on whether supply occurred. The levy of tax under section 9 read with section 7 is independent of TDS; non-acceptance of a GSTR-7 entry or lack of cash-ledger credit does not eliminate GST liability. The critical question is whether a taxable supply actually occurred; proving non-occurrence of supply is the relevant basis to avoid liability.