GST Invoice Amount Declared Lower Than Business Income - For LUT

GST
1

Hello

I declared GST invoice amount lower than my business income in FY 23-24.

I deal with export of service and I have LUT. This issue raised due to me declaring the amount I received in INR in my bank and not the Gross income in USD were some withholding tax was also deducted by client in US.

Issue is that client has also added TCS of 1% on gross income and added it to my AIS. This can create a mismatch.

Now, If I declare full Gross income to match with AIS, then it can mismatch with GST.

Is there any penalty I have to pay in GST, considering I pay 0% as it’s an export of service?

2

It is important to determine whether the difference between your GST invoice amount and your declared business income under LUT is due to exempt supplies or supplies that are not subject to GST. To avoid detection, make sure you keep proper documentation and keep track regularly. To avoid issues during GST audits or assessments, consult a tax professional.