TURNOVER VS BANK TRANSACTION

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A client's GST turnover (Rs. 63,79,861) significantly differs from their bank statement transactions (Rs. 1,12,43,519). The core question is whether to report the GST turnover as sales and if this discrepancy will raise queries. It's crucial to ascertain the reason for this difference, as reporting only the GST turnover could lead to the excess bank amount being treated as undisclosed income during scrutiny, attracting tax, interest, and penalties.

PANDIAN BRIGHT

PANDIAN BRIGHT (Querist)
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16 September 2021 ONE OF MY CLIENTS SHOW GST TURNOVER AS Rs.63,79,861. BUT HIS BANK STATEMENTS SHOWS THE TRANSACTION VALUE OF 1,12,43,519. WHETHER I DISCLOSE THE GST TURNOVER AS SALES OR BANK TRANSACTION VALUE?
IF I DISCLOSE THE GST TURNOVER AS SALES, IS THERE ANY QUERY REGARDING THE BANK TRANSACTION VALUE?
PLEASE GUIDE..

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 September 2021 Ascertain the reason behind the difference in transactions as per Bank account and the GST turnover. No opinion can be given based on the difference...

PANDIAN BRIGHT

PANDIAN BRIGHT (Querist)
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16 September 2021 IF I DISCLOSE GST TURNOVER, WHAT TYPE OF ISSUES MAY I RECEIVE?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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17 September 2021 In case of scrutiny the excess amount treated as undisclosed income, liable to tax, interest & penalty.

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