Filling ITR3

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This discussion clarifies how to correctly report revenue and Goods and Services Tax (GST) within the Profit & Loss (P&L) section of the ITR3 form. The user was unsure whether to include GST in their gross receipts and how to account for GST paid back to the government. The advice given is to report gross revenue from services and then debit the collected GST amounts under 'Rates or taxes, paid or payable to Government' in the P&L. This ensures accurate reporting and avoids potential issues with tax assessments.

Varadaraj.K

Varadaraj.K (Querist)

06 July 2022 in form ITR3, while filling up P&L, I enter revenue from services as 100,000

A Sales/ Gross receipts of business (net of returns and refunds and duty or tax, if any)

ii Sale of services = 100,00

C Duties, taxes and cess received or receivable in respect of goods and services sold or supplied

iv Central Goods & Service Tax (CGST) - 9,000

v State Goods & Services Tax (SGST)- 9000

and it shows revenue as 118K it includes GST ( but GST is paid back to GOI

D Total Revenue from operations (Aiv + B +Cix) 4D = 118,000

so should I enter in the GST paid as under,

I enter in debits to P & L Account the taxes which I simply collected but paid back to Govt? as under

44 Rates or taxes, paid or payable to Government or any local body (excluding taxes on income)

v Central Goods & Service Tax (CGST) - 9,000

vi State Goods & Service Tax (SGST) - 9,000

previous year I had not filled up sec.44 and the IT assessment order I received is as I filled and doesn't include the GST I paid to the GOI.. ultimately, profit is more

what is the correct procedure?.

thanks in advance..

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

11 July 2022 Correct. You can debit the amount paid back to government in column 44.

Message likes : 1 times

Varadaraj.K

Varadaraj.K (Querist)

11 July 2022 Thanks a lot🙏.. but what surprises me is the previous year assmnt order.. carries my mistake...because it is advantage dept.. me the looser....

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

11 July 2022 Yes, many such mistakes were overlooked, be it advantageous or not. But now on you may get defective notice.

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