Adjustments in turnover due to reasons not listed above

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R/sirs

A taxpayer declared same turnover in his sales register/GSTR 9 but in the PL account the TP declares the turnover more than the sales register/GSTR 9. During filing of the GSTR 9C, it is declared in the column- Adjustments in turnover due to reasons not listed above. when asking about the details, no satisfactory reply received. The TP enhance the turnover in the PL and declare that this is not related to sale. it is answered that we have declared the enhanced figure with income tax and no GST liability arises on this.

Please guide that GST liability arises or not in this matter.

AI Summary

Discrepancy in Taxpayer's Turnover Raises GST Concerns; Experts Advise Justifying Differences with Evidence to Avoid SCN. A taxpayer reported a higher turnover in their Profit and Loss account compared to their sales register and GSTR 9, citing adjustments not related to sales. The discrepancy raised concerns about potential GST liability. One expert suggested reviewing the notes to accounts for possible explanations like interest income or supplier credits, which might not incur GST. Another expert indicated that the CGST department might issue a Show Cause Notice (SCN) based on income tax figures, advising to justify discrepancies with evidence. Concerns were raised about the financial statements not reflecting a true view, potentially prompting audits or investigations.