ganesh (BUSINESSMAN) 17 July 2018
Suppose if we opt Presumptive basis then wether the turnover should include GST or not
Eg Sales is Rs 100 and GST is Rs 18 so total Receipt is Rs. 118 so u/s 44AD wether Rs. 100 should be considered for calculating 8% of Turnover or Rs. 118 should be considered for calculating 8% of Turnover.
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Jethmal Singhvi (Chartered Accountant-Practitioner) 26 September 2018
In my opinion and thought by practicle, Turnover shall be Rs. 100, as Rs. 18 hasbeen collected on behalf of Govt. from the buyers. However Section 145A of the Income Tax Act,1961 states that purchase , sale and inventory shall be valued by taking into account the amount of any tax, duty, cess or fee.
Sunil (Trader) 17 March 2019
After introduction of GST the value of inventory we have is excluding GST as the GST component (IGST, CGST, SGST, UTGST) is all separately lying as Input GST in our books of account and these are adjusted against Output GST. Even GST excludes the GST from the turnover in calculating aggregate turnover.
As GSTR 3B for March is filed between 1st and 20th April you will have Input GST as your asset and Output GST as your liability as your return is not yet filed. Even if you deposit money in Cash Ledger it will reflect as asset in Cash Ledger.
This aspect of GST is one of the grey areas that ought to be ironed out in the Income Tax Act for Section 44AD. The legal fiction is the higher the rate of tax, the higher your presumptive income because GST Rate varies from Nil to 28%. There is also a situation of Composition dealers who do not charge customers the GST. For the same product there will be varying income under presumptive scheme. Someone with a small turnover of 10 lakhs maybe forced into GST just because of interstate supply. He will have a disadvantage against a URD.
What will happen is a person with 10 lakhs turnover in North East state will have to show a higher income than a person with same turnover in other states only because of GST.
CA Ankit Agarwal (CA, CS) 22 March 2019
If You are opting for presumptive scheme u/s 44AD then GST shall be added in Turnover.
But if If You will go for regular scheme u/s 44AA then GST shall not be added to Turnover.
In your case, GST will not be added.