GSTR3B turnover differ with GSTR1 turnover - non gst supply

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This query is : Resolved

Bazeer Ahmed (Querist)
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10 November 2021 Dear Sir,
We are one of the manufacturers in the textile industry. Our company has owned 2 windmills and generated power has been utilized captively for our company production. The wind mills were procured with borrowed bank finance. For determining profitability of wind mill operation and we had to submit the operation statement to banker, in our company accounts we create a windmill division and raise invoice internally (buyer and seller is our company only) for the unit generation and accounted the expenses pertain to this division.

1. We filed GSTR1 without showing the windmill presumed income as there is no outward supply. However for the purpose of tally the total company turnover with the GSTR9 / 9C turnover we had filed our GSTR3B with the income as non gst supply still December2020. But from January 2021 we have filed the GSTR3B without the windmill income as there is no outward supply.

2. Likewise we have not filed with the RCM entries in GSTR1 whereas in GSTR3B we filed with the RCM and paid the dues promptly within the time.

Now the GST authorities raise query as why the difference has been made between total turnover as per GSTR1 and total turnover as per GSTR3B.

The listed above 2 criteria has made the difference between our total turnover of GSTR1 and GSTR3B.

Kindly advise us whether any fault at our doings. What would be the correct practice when the internal division transactions.

Thanks in advance.

with warm regards,
Bazeer L

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 November 2021 Internal transfer should not be considered as turnover. Reply the reasons for the difference it will be accepted. No problem in this case.

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