GST NOTICE DISCRIPENCIES

This query is : Resolved

sakthees (Querist)
Follow

02 January 2026 we are doing the business of fireworks industries and we have received a notice from GST department for Inspection disputes regarding. we have purchase one fireworks industries under 'LEASE' terms from January 2021 and amount was paid to them. In our Profit & Loss account Taxable turnover reported for Rs.93.00 lakhs and the same was reported in GSTR1 & 3B also. But at the time of Inspection our bank statement showing from January 2021 to March 2021 credit side balance on Rs.26.00 lakhs only. Now the department issue the notice for Bank statement-Rs.26.00 lakhs + P&L Turnover-Rs.93.00 lakhs +Reported turnover in GSTR Returns-Rs.109.74 lakhs (including Tax).Department asking the difference for excess reporting of Rs.83.74 lakhs (Rs.109.74-Rs.26.00 lakhs).Now how can we reply and prove of excess reported turnover issues to the department.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

02 January 2026 The GST department’s comparison of bank credits with GSTR turnover is legally incorrect. GST is payable on invoiced turnover (accrual basis), not on collections. By submitting a proper reconciliation between invoices, debtors, and bank receipts, along with supporting documents, you can fully justify the ₹83.74 lakh difference and close the inspection issue without any additional tax liability.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now