Clause 44 of Tax Audit Report (Form 3CD) Under Income Tax Act, 1961 deals with Break-up of total expenditure of entities registered or not registered under GST. In respect of Expenditure in respect of Entities registered under GST Auditor needs to disclose expenditure Relating to goods & services exempt from GST, Expenditure Relating to entities falling under Composition scheme, Value off all inward supplies from regd. Dealers, other than composition dealers and exempt supply from regd. dealers and Total payment to registered entities.
Format of Clause 44 of Tax Audit Report (Form 3CD)
Break-up of total expenditure of entities registered or not registered under GST:
| S. No. | Total amount of Expenditure incurred during the year |
Expenditure in respect of Entities registered under GST |
Expenditure in respect of Entities not registered under GST |
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| Relating to goods & services exempt from GST |
Relating to entities falling under Compo-sition scheme |
Other | Total payment to registered entities |
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| [A= (E+F)] | (B) | (C) | (D) | [E= (B+ C+ D)] | (F) | |
| 1. Total expenditure means Revenue as well as Capital Expenditure also.2. Depreciation, Bad debts etc. Which are not expenses should not be reported here.3. Expenditure w.r.t. activities or transactions covered by Sc. III of CGST Act 2017 need not to be reported here.eg:-Remuneration to employee – Court fees, etc. 4. As per guidance note issued by ICAI, you may provide details in aggregate or head wise or |
1. Here, the value of all the inwards supplies which are exempt from GST is to be given.
2. Exempt supplies also include non-taxable supplies as well* |
1. Payment made to vendors who opted composition scheme need to be reported here | 1. Value off all inward supplies from regd. Dealers, other than composition dealers and exempt supply from regd. dealers, are to be reported here. |
1. The values inward supplies from un-regd. dealers need to be reported here. |
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* “non-taxable supply” means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act”
Hence, as per the above definition “non-taxable supply” includes supply of goods or services which are not leviable to tax under the CGST Act, 2017 or under the IGST Act, 2017.
As per section 9 of the CGST Act, 2017 / 5 of the IGST Act, 2017, the following supplies are not leviable to GST:
(i) supply of alcoholic liquor for human consumption
(ii) supply of petroleum crude, high speed diesel oil, motor spirit, natural gas and aviation turbine fuel
Hence, the above supplies, being not leviable to GST, are exempt supplies.
* To ascertain what are exempt supplies, you may refer following notifications issued under the CGST Act 2017 and IGST Act 2017:
(A) Notification No.1/2017 CT (R)
(B) Notification No.2/2017 CT (R)
(C) Notification No.11/2017 CT (R)
(D) Notification No.12/2017 CT (R)
(E) Notification No.1/2017 IT (R)
(F) Notification No.2/2017 IT (R)
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