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This discussion clarifies whether GST paid can be deducted from income when filing under presumptive taxation. The consensus is that GST paid cannot be directly set off against the presumptive income calculated as 8% or 6% of turnover. For example, if your turnover is £100,000 and your presumptive taxable income is £8,000 (8% of turnover), you cannot reduce this £8,000 by the amount of GST you paid.

Harshad Khona

Harshad Khona (Querist)

13 June 2020 I file my IT return on presumptive taxation.
My question is Can we reduce total GST paid from total income annually.

PL help at earliest convenience .

Harshad khona

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 June 2020 Yes, you can do it but 8%/6% profit on turnover required for presumptive taxation.

Harshad Khona

Harshad Khona (Querist)

14 June 2020 I agree Sir, but I can reduce Gst paid from income arrived at by 8% or 6% of turn over.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

14 June 2020 You can not set off GST Paid with 8% or 6% of Tax Calculated.

Harshad Khona

Harshad Khona (Querist)

14 June 2020 For my clear under standing.
This means If my turn over is 100000. Then my taxable income is at 8% is 8000.
I have paid GST of 1000/
So what would be my taxable income.
Thanks,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 June 2020 Your taxable income is 8000 only.

Harshad Khona

Harshad Khona (Querist)

14 June 2020 Thank you very much sir.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 June 2020 Welcome................

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