GSTR turnover and 44ae

Is the GSTR3B turnover pertaining to transport activity from these 4 vehicles?

Yes fright revenue 

The reporting in GSTR3B is sales, whereas reporting under 44AE is net income or profit. So there should not be any issue in this case. 

Let's consider some business other than transport and assume there are no cash receipts at all, which means that the business will now qualify for 44AD with a limit of 3 crores. In case of such a business, for the same 2.5 Cr turnover, presumptive income will be considered at 6%, which comes to 15 lakhs income or profit.

Coming back to your case, the total turnover from transportation activity reporting in GSTR3B is 2.5 cr, and the total profit from transport activity under 44AE is 17 lakhs, which indicates a profit ratio of around 7%, which seems to be acceptable.

It is to be noted again that, the difference between GSTR3B and 44AE is that, GSTR3B reports sales and 44AE reports profit or net income.

Sec 44AE has no turnover limit, so a high GST turnover doesn't bar it:

• Sec 44AE applies to a person owning 10 or fewer goods carriages at any time during the year, engaged in plying, hiring or leasing them. Income is deemed per vehicle: heavy goods vehicles Rs 1,000 per tonne of gross vehicle weight per month; others Rs 7,500 per vehicle per month, or more if declared.

• Rs 17 lakh for 4 vehicles: check the computation. With GVW-based deeming for heavy vehicles, this may be acceptable.

• Freight receipts of Rs 2.5 crore are high for 4 vehicles. If you hire additional vehicles from others (brokerage or sub-contracting), that income is not under 44AE (it only covers your own vehicles). It must be offered separately, under 44AD or regular books (and 44AD isn't allowed for commission or brokerage).

• Books and audit: under 44AE, no books are needed for that income. But if other business income is computed on books, 44AB thresholds (Rs 1 crore / Rs 10 crore turnover) apply to the total turnover.

• GST: GTA services. Check whether the GTA opted for forward charge (Annexure V); otherwise freight is under RCM by recipients, and GSTR-1 reporting should reflect that.