GST Turnover Mismatch with Rental Income in 44AD Case

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This query is : Resolved

Deepak Chauhan (Querist)

14 July 2025 A business entity registered under GST is issuing Rental Service Invoice against Rent Received every month from B2B tenant. These Rent Invoices are uploaded in GSTR 1 along with sale of goods made by the business. The Annual Turnover reflecting in AIS in inclusive of rental service provided. For eg Rent received 12 lakhs annually along with turnover for sales of goods of 50 lakhs. The total turnover in GSTR 3B is 62 Lakhs but it cannot be shown as business income and cannot pay taxes at 6% or 8% of turnover. The reporting of 12 lakhs rental income is shown under head income from house property. My queries are
Q1. The Data entered shows mismatch between GST Turnover mentioned (62 lakhs) and its bifurcation (50) lakhs in 6% and 8% also chances of notice getting issued for mismatch in turnover?

Q2. The 44AD Scheme mentions for Gross Receipts but AIS shows Net Turnover Reported in GSTR 3B. The Gross Receipts mentioned (Turnover including GST) exceeds Net Turnover Reflecting in AIS (without GST). How such Net Turnover can be bifurcated into Gross Receipts in Bank / Cash Mode.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 July 2025 1 Show 50 lacs under business income and 12 lacs under income from house property.
Respond to AIS 12 lacs shown under house property income, no notice will be received.
2 Under 44AD show turnover excluding GST. Bifurcate based on books of accounts.

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