Schedules for reporting GSTR details in Income Tax Returns

Reporting Goods and Services Tax (GST) details in income tax returns in India is crucial for businesses that are registered under the GST regime. One crucial aspect is reporting GST details in income tax returns. Understanding this process is essential for businesses to ensure accurate compliance and avoid penalties. 

After the introduction of GST in India income tax department has also implemented the introduction of GST in IT returns. We will explore the various schedules and reporting requirements in ITR.

Where are the GST details reported in ITRs:
Reporting GST details in ITR is very important to avoid penal provisions. Let us have a look at where are the details regarding GST are entered in ITR:

  • In Part A- Trading Account

While determining total revenue from operations, all the duties, rates and taxes are considered which includes CGST/IGST/SGST/UTGST related details and amounts.

  • In Part A- Profit and Loss Account

GST rates are allowable deductions in Income tax and hence the same are reported in P&L.

  • In Part A- Other Information

Amount of credit outstanding in the accounts in respect of GST are mentioned.

  • Schedule GST

The most important GST reporting requirement in ITR is related to Schedule GST where information regarding turnover/gross receipts reported for GST are recorded. Following details are required in Schedule GST i) Sr. No. ii) GSTIN iii) Annual value of outward supplies as per the GST return(s) filed.

Information for each GSTIN is to be entered separately.

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Important points to keep in mind for reconciling GST data with Income Tax return:

Taxable income in the income tax return should also be reconciled with the GST returns. Any income or expenses related to GST should be appropriately reflected in the income tax return. Businesses need to reconcile their turnover figures reported in their GST returns with those reported in their income tax returns. The turnover details reported in the GST returns should match with the turnover reported in the income tax return to ensure no discrepancy is generated.

Asseessees who are liable for audits under different laws are required to report the same in their ITR and audit information. If a particular assessee is required to file tax audit under GST laws and the same is required to be reported in ITR then the details like GSTIN, effective date of registration, Turnover, nature of business, HSN codes, tax liabilities, Input Tax Credit etc are to be mentioned.

3CD form audit reporting requires mentioning of Indirect tax numbers alongwith enacting state applicable to it.

As per ICAI guidance notes on Tax Audit u/s 44AB, in certain cases like salary, depreciation, etc., break-up of expenditure is not required to be reported as Expenditure in respect of entities registered under GST & not registered under GST. However, such expenses need to be included in ‘Total expenditure during the year’. It is not mandatory to give break-up of Total expenditure.

Reporting GST details in income tax returns is a critical aspect of tax compliance for businesses operating in India. It’s important to note that the specific reporting requirements may vary based on the nature of business, turnover, and other factors. Discrepancies or inconsistencies between GST filings and Income Tax return filings can lead to scrutiny and potential tax implications. Hence, reporting of GST is done in Income Tax returns as well as in 3CD audit reports as required by Income Tax Department.

About Author:
CA Chinmay Shirish Agate
Chinmay Agate is a Practicing Chartered Accountant having 4+ years of experience and expertise in the field of Direct Taxation and Auditing compliances. In the past, he worked in various CA firms and comes with wide industry experience from services, retail to manufacturing to trading where he has handled various complex assignments. He has keen interest in Forex and Derivative knowledge as well as fundamental analysis.

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