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. 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

GST liability on unexplained turnover may arise unless the excess is shown as non supply receipts with documentary support.
A taxpayer disclosed excess turnover in the profit and loss account under adjustments not elsewhere classified. If the excess is due to non supply receipts (interest, breach receipts, supplier credits with ITC reversal, export incentives, insurance recoveries) and documented in notes to accounts, no GST liability arises. If unexplained, the department may treat it as escapement and issue a show cause notice but must first establish that the amount is consideration for supply; documentary evidence should be furnished to the proper officer to avoid or defend against departmental action.