Difference in Total Turnover As Per Books & GSTR-9C, Goods and Services Tax - GST

[NISHANT SHAH]

Dear Experts,

My client had incurred expense of Quality difference on account of export to foreign buyer and booked these expenses in P&L account as a part of sales and likewise Rate Difference expense was also incurred and booked in similar manner. It has also incurred Insurance expense which is paid in general on export turnover and debited in Schedule of Sale accounts in P&L Account and that's why difference is arrived at for all these 3 expense while reconciling turnover in GSTR-9C. My client had not issued Credit Note to foreign buyer against above export sales and just made journal entry to square off foreign buyer account and booked exps. in P&L in Sales Account.

Now my question is how this difference is to be disclosed in Annual Return (GSTR-9) & Reconciliation Statement (GSTR-9C)??

1) If it is to be disclosed in GSTR-9 then in which table should I include them? By doing so, there would be no difference in unreconciled total turnover in GSTR-9C.

2) Whether it would be justified if we include difference in GSTR-9C in Unreconciled Total Turnover?

Thanks in advance all experts..

Posts / Replies

[NISHANT SHAH]

Dear All Experts,

Please suggest your view on above query..

[Alkesh Jani]

Shri

Your query requires verification of records. Therefore, it is suggested that please hire an expert in your city and follow his instruction.

[Alkesh Jani]

Shri

The fact is that your book of account and GST sales and purchase figure should tally. If there is any difference, you should be in position to clarify the same.

While filing GSTR-9 it is suggested that make all entries as per your books of account, the annual return concept is that if any omission or error is made while filing returns it should be incorporated in annual return.

Hope this will clear your query.

[NISHANT SHAH]

I agreed with you sir but in GST-9, there is no place to report non-gst expense in turnover which we need to report in only GST-9C because of difference . Non-GST expense column given in Table 5F is of specific non-gst outward supply whereas in our case, it is different case.

Hence whether we can report same in Adjustment in Turnover due to reasons not listed above Table 5O (Adjustment in Turnover due to reasons not listed above ) and thereby matching of our turnover both in Table P & Q of 9C.?

We had no difference in taxable turnover and our unreconciled taxable turnover would remain 0 only in Table 7G of 9C.

[Alkesh Jani]

Shri

You can declare this amount at 5F of GSTR-9, if this amount is non taxable, difference in currency rate difference and also for insurance (please refer valuation provision) if it is non taxable then same is to be reported here i.e. 5F of GSTR-9.

In GSTR-9C, the rate difference can be reported at 5N and for insurance if it is non taxable the same can be reported at 5O of GSTR-9C.

But I am of the view that insurance expense is covered by Section 15 and therefore, it may be reported at 5M of the GSTR-9C.

[NISHANT SHAH]

Ok Thanks sir for your valuable guidance.

[NISHANT SHAH]

Dear Alkeshji,

I am of the view that Insurance exp. paid in general which is related with common export sales/local sales can't reported in Table 5M since it specifically talks about Section 15 of CGST Act, 2017 which deals with definition of transaction value. So, I am of view that it should be reported in Table 5O.

I want to also ask about any adjustment if any done in export invoices , like non-receipt of amount or quality differences , can we make adjustment in Table 5O?

[Alkesh Jani]

Shri

Yes, I am of the view that any adjustment of export can also be reported in 5O.

[NISHANT SHAH]

OK Thanks Sir