GST SURVEY ADDITION

This query is : Resolved

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If a GST survey results in an increased sales assessment (DRC-01A) and you've paid the taxes and penalty via DRC-03, this additional sales amount should not be reported in GSTR-1 or 3B. Instead, disclose it in Part V of your GSTR-9, specifically in tables related to transactions declared in the next financial year or paid via DRC-03. The tax portion is reported in Part V adjustments, while penalties are disclosed separately. This ensures your annual return reconciles with actual tax payments.

Deepak Jain Salecha

Deepak Jain Salecha (Querist)
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04 December 2025 During Gst dept survey officer noticed stock in hand is less than the stock in books so Gst Department increases Sales by issuing DRC 01A as of Rs 10lakhs and taxes and penalty on it and the party has paid taxes and penalty by DRC 03

How we have to report this sales in Gstr 9 as it is not shown in Gstr 1 And 3b

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 December 2025 The additional sales liability of ₹10 lakhs raised by the GST department and paid via DRC-03 must be disclosed in Part V of GSTR-9 (transactions relating to previous FY declared in next FY or through DRC-03). It should not be added to outward supplies in Part II (since it wasn’t reported in GSTR-1/3B), but instead shown under the section for “taxes paid through DRC-03” so that the annual return reconciles with actual tax paid.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 December 2025 Since this liability was not reported in GSTR-1 or 3B, you cannot revise Part II.
• Instead, disclose it in Table 10 or 11 of Part V (depending on whether it pertains to the same FY or subsequent FY).
• The tax and penalty paid via DRC-03 must be reflected in Table 14 of Part V (taxes paid but not included in returns).
Penalty paid via DRC-03 is not part of outward supply; it is separately disclosed in Table 15 (Demands & Refunds).
• Only the tax portion linked to the ₹10 lakhs sales is reported in Part V adjustments.

If your turnover exceeds ₹5 crore, you must also file GSTR-9C and reconcile the figures reported in GSTR-9 with your audited financial statements. The additional liability paid via DRC-03 must be disclosed in GSTR-9C as well.

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