Annual Value of Outward Supplies in ITR: What to Enter

Businesses filing ITR-5 or ITR-6 must report the Annual Value of Outward Supplies in ITR for each GSTIN, using GST-return figures rather than book revenue. The field should include taxable and non-taxable supplies, preferably from GSTR-9, or consistently aggregated from GSTR-1 or GSTR-3B if no annual return was filed.

“Annual value of outward supplies as per the GST return filed” is a field in Schedule GST of ITR-5 and ITR-6. It asks for the total value of all sales you reported in your GST returns for that financial year. Take the figure from your GSTR-9 annual return, or if you did not file one, add up the outward supplies across all twelve GSTR-1 or GSTR-3B returns.

It appears the moment you enter a GSTIN, which is why it usually arrives as an unwelcome surprise late in the filing process.

Why this field exists

It is a cross-check. The Income Tax Department already receives your GST data. Schedule GST asks you to state your GST turnover in your income tax return so the two can be compared automatically.

If you declare ₹4 crore of turnover to the GST authorities and ₹2.5 crore of revenue in your income tax return, that gap is visible without anybody opening a file. Most scrutiny that begins with “there is a difference between your GST and income tax turnover” starts here.

Entering the GSTIN makes the outward supplies field mandatory. You cannot fill one and leave the other blank.

Which number to use

The wording is “as per the GST return filed”, and it should be read literally. It wants what you actually reported to GST, not what your books say the revenue was, and not a corrected figure.

In order of preference:

If you filed GSTR-9, use that. It is the annual return and already consolidates the year. Table 4 covers outward supplies on which tax is payable. Table 5 covers outward supplies on which tax is not payable, which includes nil-rated, exempt, non-GST and zero-rated supplies such as exports under LUT.

The field asks for the annual value of outward supplies, so it should reflect the total of taxable and non-taxable outward supplies, not merely the taxable portion. A pure exporter filing under LUT has substantial outward supplies and near-zero tax payable. Reporting zero here because no tax was paid would be wrong.

If you did not file GSTR-9, which is optional below the prescribed turnover threshold, add up the outward supplies reported across your monthly or quarterly returns for the year. Use one series consistently. Do not take some months from GSTR-1 and others from GSTR-3B.

If you have more than one GSTIN, and most businesses operating across states do, report each GSTIN with its own outward supplies figure. Schedule GST allows multiple rows. Do not consolidate several registrations into a single line.

Where taxable value and turnover part company

The commonest source of confusion is that GST turnover and accounting revenue are built on different rules. They are supposed to differ. What matters is that you can explain the difference.

• Stock transfers between your own branches in different states are outward supplies under GST and carry an invoice. In your accounts they are not revenue at all. This alone can inflate GST turnover well above book revenue for a multi-state business.
• Schedule I supplies, made without consideration, appear in GST but not in revenue.
• Advances received on services may attract GST in one period while the revenue is recognised in another.
• Credit notes reduce GST turnover in the month they are issued, which may not be the month of the original sale.
• Non-GST income such as interest, dividends or certain other receipts sits in your profit and loss account but never appears in a GST return.
• The financial year boundary. March invoices reported in the April GSTR-1 belong to the earlier financial year for income tax but appear in a later month’s GST return.

None of these is a problem in itself. They become a problem when a notice arrives and nobody can reconstruct the difference two years later.

Keep the working

Before you file, prepare a short reconciliation: GST outward supplies at the top, book revenue at the bottom, and each adjustment listed between them with the amount. One page.

If a query ever arrives, that page is the entire answer, and it takes minutes to produce now against days to reconstruct later. If you are required to file GSTR-9C, much of this work is already done in that reconciliation statement.

What happens if the figures do not match

A mismatch between GST turnover and income tax turnover is one of the standard automated risk flags. It does not automatically produce a demand, but it can produce a notice asking you to explain.

The response is almost always documentary rather than argumentative. You show the reconciliation, evidence the branch transfers or the credit notes, and the matter closes. Businesses that struggle are the ones that entered a round figure without a supporting schedule.

Do not attempt to make the numbers agree by adjusting this field. Reporting a figure that differs from your filed GST returns creates a second inconsistency on top of the first, and the department can see both.

Practical cases

Registered but no sales all year. Report zero. Having a GSTIN with nil turnover is ordinary, and nil returns filed through the year support the figure.

Registration cancelled mid-year. Report the outward supplies for the part of the year the registration was live, using the returns actually filed.

Composition scheme. You file CMP-08 and GSTR-4 rather than GSTR-1 and GSTR-3B. Use the turnover reported in those returns.

Errors found after filing GST returns. Report what was filed. Correct the GST position through the amendment mechanism, and note the difference in your reconciliation. Do not silently substitute the corrected number.

Filing ITR-3 as a proprietor. Schedule GST in its ITR-5 and ITR-6 form does not apply, but GST turnover still needs to be consistent with the business receipts you declare. The reconciliation discipline is the same even where the field is not.

Common questions

Is this field mandatory?
If you have entered a GSTIN, yes. The two are linked.

Gross or net of GST?
Report the value of outward supplies as reported in the GST returns, which is the taxable value, not the value plus tax collected. Use the same basis your returns used.

Do exports count?
Yes. Zero-rated is not the same as no supply. Exports are outward supplies and belong in the figure.

Do I include RCM purchases?
No. Reverse charge relates to inward supplies. This field is about outward supplies only.

What if I have three GSTINs?
Report three rows, one per registration, each with its own outward supplies figure.

The short version

Take the total outward supplies you actually reported to GST for the year, taxable and non-taxable together, preferably from GSTR-9, and enter it against each GSTIN. Do not adjust it to match your books. Instead, keep a one-page reconciliation explaining why the two differ, because branch transfers, credit notes and timing differences mean they usually will.