GST and ITR turnover

Hey Dipjyoti,

Great question! Here’s the usual practice:

Which turnover figures does the GST department compare with ITR for mismatch queries?

• The GST department primarily uses the turnover declared in GSTR-3B for comparison with the turnover declared in Income Tax Returns (ITR).

• GSTR-3B is a summary return, filed monthly or quarterly, reflecting the actual outward supplies (turnover) and tax liability.

• Although GSTR-1 contains invoice-level details, GSTR-3B figures are often considered the primary data point because it is a self-declared summary of taxable supplies and turnover.

Why GSTR-3B?

• GSTR-3B is filed every month/quarter, and it contains the net values after amendments, discounts, and adjustments.

• The department uses it for preliminary matching because GSTR-1 can have amendments, cancellations, or missing data.

• Also, the GST portal’s automated systems extract turnover figures from GSTR-3B to compare with IT returns.

Key points:

• Mismatch queries usually arise when total turnover in ITR differs significantly from aggregate turnover in GSTR-3B.

• It’s important to maintain consistency between your GSTR-3B declared turnover and the turnover reported in your ITR.

• If there are differences, be ready to explain with proper documentation (e.g., exempt sales, non-GST turnover, differences in accounting policies).