ITR FORM CLARIFICATION

A proprietorship concern having GST Number no turnover for F.Y. 2020-21, But he has other source of income, so which ITR form he has to be filed?

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Quick Summary
This discussion clarifies which Income Tax Return (ITR) form to use when a proprietorship has a GST number but no business turnover for the financial year. If there's other income, the choice of ITR form depends on whether that income constitutes a 'SUPPLY' under GST. If it's not a supply (like bank interest), ITR 1 or 2 might suffice. However, if the other income, such as handicraft earnings, falls under the GST definition of supply (even if nil-rated), the GST return must be revised first. Subsequently, this turnover should be declared as business income in ITR 3 or ITR 4. For declaring business losses, ITR 3 is the appropriate form.

If no activity of the business. you can file ITR 1 or 2 as per other satisfying criteria.

But sir, he has GST number, if he shows other income there will be charged GST or not?

It it comes under definition of 'SUPPLY' as per GST act, then naturally, GST will be applicable.

That's why I asked you he had nil gst return for F.y. 2020-21 so how he filed his income tax return with other source of income. 

What is the source of income? If it is bank interest or any other income which do not fall under range of SUPPLY under GST, then there want be GST applicable. Otherwise you may have to declare that supply in GST return itself!!

Sir I can not understand any other income which do not fall under range of SUPPLY under GST means if Rakhi Making charges or handicraft income, it will be under GST or not, then which form he should file. Because he did not show this income in GST return

 

These business transactions fall under supply category under GST act, may be under NIL rated, so you must revise the GST return first; and declare the turnover.

That turnover should be declared in ITR 3 or ITR 4 as business income; and not under IFOS.

Sir a person can file loss in ITR4 or he has to file ITR3

For any business loss declaration ITR 3 should be filed.

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