Inclusion of GST tax in Sales Turnover

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DIVYESH JAIN (Querist)
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12 October 2019 Dear Sir,

I have prepared my books of accounts showing taxable sales which excludes GST tax. But in my 26AS the Amount paid is calculated by taking into account the GST tax. This has resulted in excess Sales showing in my 26AS. I have paid all the GST which was applicable.

I want to know what is the definition given by Income tax with regard to GST tax, whether to include or exclude in Turnover of Sales.

I need to reply to Income tax notice regarding the above issue so if you can provide me the relevant section to support my answer.

Regards,
Divyesh Jain

CA. Ankit Jain

CA. Ankit Jain (Expert)
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14 October 2019 Divyesh,
As such the turnover to be considered in books should be exclusive of tax, but as and when u refer to section 145 of Income Tax Act,1961 , it is specifically mentioned that the sales figure should include tax amount & opposite site tax i.e GST to be claimed as expense. This is the specific adjustment to be done as per ICDS.

But if you are submitting it to I.T Authority, ypu need to present it differently.
You can contact me , if specific help is required

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