Have you matched your GST Turnover with Form 26AS?
Gone are the days where the figures as reported in the financial statements were not being reconciled with the GST/ VAT returns. If you still follow the same practice, you will land yourself in trouble.
As per the Memorandum of Understanding (MoU) signed between Central Board of Direct Taxes (CBDT) and Central Board of Indirect Taxes (CBIC) on 21.07.2020, there shall be exchange of information between the two organization.
The results have started showing now. Income Tax department has revealed the information pertaining to the “Turnover as per GSTR-3B” in the PART-H of Form 26AS. The details contained in PART-H are:
GSTIN
Application Reference Number (ARN)
Date of Filing GSTR -3B
Return Period
Taxable Turnover
Total Turnover
Note: The GSTN data includes internal stock transfer as well.
Previously Form 26AS was only meant to check whether the deducted TDS is being shown on the PAN, advance tax payments, refund and interest thereon, TRACES default, Statement of Financial Transaction (SFT), etc. But now it includes Indirect Tax details as well. Here is how PART-H of Form 26AS look like:
At the time of filing Income Tax Return (ITR), one needs to ensure that the turnover as reported in GST return must match with the one as reported in the ITR. Any genuine mismatch should be properly reconciled and kept on record so that in case of any notice received from the department, you can promptly comply.
In case of mismatch, even CBIC may call for explanation or issue notices.
In all we can conclude that one needs to ensure:
Proper & correct filing of GST Returns.
Regular reconciliation of books of accounts with GST Returns.
Any error/ issue with respect to GST return in any month should be promptly rectified in the ensuing month.
Any genuine mismatch should be properly reconciled and kept on record.
At the time of filing ITR, don’t forget to see your Form 26AS even if there has been no TDS deduction.
Always take help of Tax Experts if you are stuck somewhere.