Turnover criteria In IT & GST Act

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This discussion addresses the discrepancy in turnover calculation for commission agents between GST and Income Tax laws. While GST considers the total sale value of goods facilitated, Income Tax focuses on the commission earned. The conversation clarifies that for tax audit purposes under the Income Tax Act, the commission earned is the relevant turnover figure, not the total sale value reported for GST. It's important to correctly identify the business as a commission agent and justify the differing turnover criteria in GSTR 9C.

Raj Kumar Goyal

Raj Kumar Goyal (Querist)

08 July 2020 How to show turnover details in GSTR 9C. As per Gst law turnover of Commission agent (arhtiya) is value of I form issued ie sale value (advance rulling is also recognising sale in this case). And as per Income Tax Law turnover of a commission agent is commission earned on sales. TDS was also deducted U/s 194 H on commission.

How can we justify our turnover while filling GSTR 9C and also in Tax audit under income Tax Act.. Are we liable to tax audit under Income Tax Act considering Sale as per GST returns filled.

Thanks

Raj kumar Goyal

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 July 2020 Justify the turnover difference in GSTR 9c reconciliation.
Tax audit applicable based on turnover reported in ITR. GST turnover will not be considered.

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Raj Kumar Goyal

Raj Kumar Goyal (Querist)

08 July 2020 Thanks Sir for your reply

Raj Kumar Goyal

Raj Kumar Goyal (Querist)

08 July 2020 But Sir, assessee is proprietor and if we are taking commission turnover, it is below 44AB limit but if we are taking GST turnover then GST audit will be applicable.
our concern is whether we are correct by taking commission income as turnover according to Income Tax Act and applies 44AB if turnover (commission income) exceeds prescribed limits and value of I form issued according to GST Act and file GSTR 9 & 9C accordingly. In 9C auditor has to justify assessee is commission agent and turnover criteria is different under both Acts.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 July 2020 Yes, you are correct by taking commission income as turnover according to Income Tax Act and applies 44AB if turnover (commission income) exceeds prescribed limits and value of I form issued according to GST Act and file GSTR 9 & 9C accordingly. In 9C auditor has to justify assessee is commission agent and turnover criteria is different under both Acts.

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