Sales Return Treatment in GST Returns and Financials

This query is : Resolved

Vishal G (Querist)
Follow

30 November 2019 Hi,

A Trading company has treated sales return differently while filing GST Returns and disclosing the same in Financial Statements.

In GST Returns, they have included the value in ITC.
In Financials they have reduced the value from Sales.

How to disclose the same in GSTR-9 and GSTR 9C.

Thanks,

CA PARTH SHAH

CA PARTH SHAH (Expert)
Follow

02 December 2019 Option -1. Reduce Tax amount from outward tax liability and reverse the ITC amount which was added earlier in GSTR-9.
Option -2 Give this effect in 9C with giving appropriate reasons with discrepancy with GSTR-9.
Since there will be no change in net tax liability, its not a problematic issue. However it is advisable not to take the Tax of Sale return in ITC as there will be issues in Reconciliation of ITC in books with 2A.

Vishal G

Vishal G (Querist)
Follow

02 December 2019 Thank you for the response sir..

Upgrade to CAclubindia Pro. Subscribe Now!