Details of GST in Income Tax Returns

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Arjuna (Fictional Character): Krishna the due date to file income tax returns for some taxpayers for the year 2017-18 is 31st July. It is said that in the Income-tax Returns, GST details are also required to be given. Who needs to give these details and how these details are to be given?

Krishna (Fictional Character): Arjuna, in the financial year 2017-18 VAT was applicable for 3 months while GST was levied for the period of 9 months. Before this details of Indirect Tax was never asked in the Income Tax Returns but now government is asking to provide details of GST in the Income Tax Returns.

Arjuna: Krishna which type of taxpayer need to provide GST details in their Income Tax Returns?

Krishna: Arjuna, people who have income from business & profession and who are registered in GST are required to provide GST details in their Income Tax Return. Taxpayers who have income from salary or other sources are required to file ITR 1 and 2 respectively, no GST details are required to be given in these ITR’s.

GST details would be required to be furnished in ITR 3 to ITR 6. Individuals and HUF carrying out business activities and not required to get audited are required to file ITR 3 or 4 before 31st July.

Arjuna: Krishna in ITR 3 what information of GST is required to be given?

Krishna: Arjuna in ITR 3 the following details regarding GST needs to be given-

  1. The taxpayer is required to furnish details of taxes levied on sale (CGST, SGST, IGST, and UTGST) and these details needs to be matched with the electronic liability register on the GST portal.
  2. The taxpayer is required to provide details of CGST, SGST, IGST, and UTGST paid on purchases and the credit taken thereof, these details should be matched with the electronic credit ledger available on the portal.
  3. Taxpayer is also required to furnish details of taxes paid under GST. These details should be matched with the electronic cash ledger available on the GST portal.
  4. Tax payers are required to mention in the Income Tax Return amount payable as on 31st March 2018, in relation to CGST, SGST, IGST, and UTGST
  5. If any GST refund is receivable from the government and not credited to Profit & Loss account then the details of the same are required to be given in the Income Tax Return.

Arjuna: Krishna what details regarding GST is required to be given in ITR 4?

Krishna: Arjuna in ITR 4 the taxpayer is required to provide Turnover/Gross Receipts under GST as mentioned in the GST returns. These details can be taken by the taxpayer from the GSTR 1 filed by them. Also, the taxpayers are required to furnish the GST Registration number in the Income Tax Return.

Arjuna: Krishna what lesson one must take from this?

Krishna: Arjuna, this is the first year of GST and taxpayers might have committed many mistakes in this year. It would be an uphill task for the taxpayers to match their GST returns with their Books of Accounts. But taxpayers must match it before filing the Income Tax Return.

Courtesy:

CA UMESH SHARMA

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