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Tax applicable on bank transaction

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Kollipara Sundaraiah

B.com

3025 Points Posted on 12 February 2023

A registered dealer gstr3b and gstr1 returns nil filed up to 31-12-22.if dealer sales and purchase transaction amounts receipt and payments through on bank account.
question:
gst department verification receipt and payments Bank transaction sales and purchase transaction treatment tax applicable.

Replies (2)

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) implications for bank transactions of a registered dealer. It explains that tax is payable on outward supplies (sales) at the applicable rate. Input Tax Credit (ITC) on purchases is claimable only if declared in GSTR 3B by September of the following year. The GST department may verify these bank transactions to ensure compliance.

Ca Parth Pitalia

4 Points Posted on 12 February 2023

Tax will be payable on outward supply at applicable rate of goods traded while input on goods purchased will be granted only if ITC is claimed in GSTR 3B till sept of next year.