Turnover in 26AS from GST Data: Implementation without Homework
Turnover in 26AS from GST Data: Implementation without Homework And soon the Taxpayers will get everything ready made at the portal. All banks account are getting adhar linked. TDS data is already PAN linked.Govt has done one more key change in the Income Tax system.
Now, one can get the turnover as per 3B in 26AS. Let us know more about it:
In GST System, GSTR-3B retuen filing is mandatory. It was introduced as temporary arrangement to replace GSTR–3. Originally, it was not a return as per GST Act.
However, renown judgement of Gujarat High court has ruled that GSTR-3B is not a return. To nullify the effect of the said judgement, retrospective amendment was carried out in the GST Act to specifically reckon make GSTR–3B as a return w.e.f 01.07.2017.
The issue remains. Error and discrepancies are bound to be there in any process or humans. System if Revision of GSTR 3B is not available since the inception in the GST process. One can revise Income tax returns, TDS Returns and so on but not GST retuns.
In earlier regime if indirect tax by way of service tax, excise, etc also, the provision of the revised returns was there. But, no revision facility exiwts for GSTR – 3B. Any error or omission can only be identified in the earlier GSTR-3B, can be rectified in the next return.
The rectification of the previous returns can be done upto 6 months from the end of the financial year. In short, , if the GSTR-3B contains some error or omission, one can rectify it till the month of filing return of September month of the subsequent financial year.
Normally, If any error of march 2020 is identified in the subsequent month, it can be rectified upto filing the return of September 2020.
Moving forward, it may happen that the turnover of GSTR 3B for the FY 2020-21 may contain the adjustments or error effect of the FY 2019-20 and the any error omission of FY 2019-20 identified later on may have been adjusted in GSTR 3B of FY 21-22
In short, in majority of the cases, Turnover in 26AS may not be the actual turnover of the Assessee.
GSTR -3B is never final & complete in iyself.
The dealer has to file the GSTR 9 (Annual Return) & if the turnover is above the prescribed limit, it need to be backed by GSTR 9C (GST Audit – Reconciliation Statement).
The turnover reported in the GSTR-9 and 9C is final & shows the actual reconciled turnover with books for the particular financial year.
Important point to be noted here is that if the GSTR -3B is not the final return, then obviously turnover reported in 26AS as extracted from cannot be the final.
The present system of not allowing the revision of GSTR 3 B will call for unintended, unwanted and uncalled litigation in the Income Tax Act as well.
Now, the lacuanes & lack of planning in one Act is going to impact the other Act. It would have been better if the system is implemented by due analysis and property homework to avoid the unnecessary trouble to the taxpayers.
