Quartzkraft LLP Vs ITO (ITAT Hyderabad)
Year-Shift in GST Reporting of Exports? GST vs Income Reconciliation Dispute-ITAT Hyderabad Calls for Detailed Reconciliation
Assessee, engaged in manufacture of engineered quartz slabs, had filed return declaring NIL income. The case was selected for scrutiny & AO noticed that as per GST returns, total sales were Rs.12.91 crore whereas in audited accounts/IT return sales stood at Rs.11.28 crore. Holding that there was understatement of turnover of Rs.1.63 crore, AO completed assessment u/s 143(3) r.w.s. 144B & made addition. CIT(A) upheld this action.
Before Tribunal, Assessee explained that the disputed turnover of Rs.1.63 crore actually pertained to export sales of F.Y. 2019-20. These exports were already recorded in books & audited accounts of that year but inadvertently not shown in GST returns since exports are zero-rated. On advice, Assessee reported the same in GST return of Sept-2020 (F.Y. 2020-21). Thus, the turnover was only shifted in GST compliance but not omitted from income-tax accounts. Reliance was placed on proviso to section 37(3) of CGST Act. Supporting documents such as invoices & GST returns were produced.
Dept argued that the GST return filed in Sept-2020 belonged to F.Y. 2020-21, therefore the turnover must be considered of that year. Further, the rectification should have been done by 30.11.2020, but the return was filed on 03.12.2020, making the explanation untenable.
