TURNOVER MISMATCH WITH 26 AS

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This query is : Resolved

Shalini RN (Querist)
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06 August 2024 We are registered GTA. We had raised an invoice for the transportation charges provided during march 24 in april 24 (to customer to whom we provide continuous service through out the month). And accordingly we have filed our GST Return. But our customer has booked the provision for the services taken and has filed tds return. Because of this, there is a mismatch with our books of records and 26AS. If we take in to account of the provision and pay income tax, then there would be mismatch with our turnover as per GST return. What can be done in such scenario?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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13 August 2025 Here’s what’s happening:
You reported revenue in April 2024 (invoice date) under GST.
Customer recognized expense and deducted TDS in March 2024 (when service was received), reporting it in 26AS for March.
So, your GST turnover shows April, but TDS reflects March.
This causes mismatch when income tax authorities reconcile your income and TDS reflected in 26AS.
What can you do?
1. Align Revenue Recognition and TDS Reporting
Ideally, both parties should recognize income and expense in the same period.
But since your invoice is dated April 2024, your GST return rightly reflects April turnover.
Customer’s TDS reporting as provision in March causes mismatch.
2. Communication with Customer
Inform the customer to align TDS deduction with invoice date (April).
If not possible, you can maintain documentation explaining timing difference for tax audit or income tax scrutiny.
3. Adjust in Your Income Tax Return
Report income as per invoice date (April 2024) in your books.
Show the TDS as reflected in 26AS (March 2024) as advance tax deducted.
Maintain proper reconciliation statement explaining the timing difference.
4. No Need to Adjust Turnover in GST Returns
GST turnover is based on invoice date, which is correct.
Don’t change GST turnover retroactively to match TDS timing.
5. Document for Income Tax Authorities
Keep copies of invoices, agreements, communication showing service period and billing date.
Prepare reconciliation note clarifying mismatch arises due to customer’s provisioning and timing difference.

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