I am filing GSTR 9 of my client for FY 2018-19 who is into the business of providing GTA services and he is exempt from paying GST on transportation.
But while filing income tax return Sales amount in Profit and Loss account was shown on receipt basis as per bank entries whereas Sales shown in GST returns were shown on the basis of actual bills made during the whole financial year. This has resulted in huge difference in Sales amount shown in Profit and loss account and Sales shown in GST returns for F.Y. 2018-19.
How can I resolve this issue. The difference between GST sales and Income tax Sales is 3 crore.
There is no GST liability on this 3 crore amount as it comes under exempt supply. Is it the right way of maintaining accounts incase of Transporters under Income tax.
29 October 2020
The books of accounts are to be maintained on accrual basis. In GSTR9 you have to show based on invoicing,in my view.If 9C is applicable then you can explain the difference there. You may have to revise your Income Tax return.
30 October 2020
Yes you could file the revised return by 31st March 2020.However,this time you may take the benefit of covid relaxations. Please consult a professional for a proper advice depending upon the facts of your case.
30 October 2020
Ok, But in my case I checked the Books of Accounts are kept on Cash basis. Hence Sales is shown as Amount received in bank during F.Y. 2018-19.
What will be the implication of GST Sales in such case. In GSTR-1 I have filed the returns based on the bills booked during that year
CAclubindia
