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Clause 44 of Tax Audit Report: Complete Understanding for AY 2023-24.

Clause 44 is the new GST reporting requirement, which was made effective from AY 2022-23 & onwards in the Income Tax Audit Report (Form 3CD). Below is the analysis and overview of reporting requirements to be made under this clause.


Column 1: Serial Number

Serial Number to be entered in this column.

Column 2: Total amount of Expenditure incurred

Items which are not expenditure are not to be reported in column 2 or any other column. Items which are not supply under GST are also not required to be reported in Column 2 or any other column. E.g.

Bad Debts,
Salary and Remuneration related items,
Stock in Hand,
Forex Loss & Gain etc.

All other items to be reported here.

Column 3: Exempted, Nil Rated and Non Taxable supplies are to be reported in Column 3. E.g.

Natural Gas,

Interest charged by Bank,
Interest on Loan (If lender has GSTIN) etc.

Column 4: Expenditure incurred relating to entities falling under composition scheme are to be reported under column 4.

Auditor may refer the copy of bills to verify the status of these dealers. In the absence of this information, a suitable disclosure may be made in the audit report.

Column 5: Value of all inward supplies from registered dealers, other than supplies from composition dealers and exempt supply from registered dealers, are to be mentioned here.

Column 6: Total of Column 3 + 4 + 5 is to be mentioned here.

Column 7: Expenditure relating to entities not registered under GST are to be reported under column 7. E.g.

Import of Goods and Services,
Expenses on which RCM has been paid,
Custom Duty,
Late Fee,
Interest on Loan (if lender does not have GSTIN),
Other non-GST registered entities expenditure.

Whether information in clause 44 is to be given with respect to each head separately?

A question arises whether the information is to be given in respect of each and every head of expenditure or only the total expenditure is to be given. Here, guidance may be taken from the heading of the table which starts with the words “Breakup of total expenditure” and hence the total expenditure including purchases as per the above format may be given. It appears that head-wise / nature wise expenditure details is not envisaged in this clause.

Which items of PL are not required to be reported in clause 44?

Depreciation under section 32, deduction for bad debts u/s 36(1)(vii) etc. which are not expenses should not be reported under this clause in any of the Columns.
Schedule III to the CGST Act, 2017 lists out activities or transactions which are treated neither as a supply of goods nor a supply of services and thus expenditure incurred in respect of such activities need not be reported under this clause in any of the columns from 3 to 7. For example, Para (1) of the Schedule III covers “Services by an employee to the employer in the course of or in relation to his employment” and thus, remuneration to employees need not be reported.
It may be noted that any expenditure that is incurred, wholly and exclusively for business or profession of the assessee qualifies for the deduction under the Act. Registration or otherwise of the payee under the GST Act has no relevance in considering allowability of expenditure.

Whether Capital Expenditure are also required to reported in clause 44?

In the table under clause 44, the language used is “expenditure in respect of”. Since, the word used is ‘expenditure’, it is necessar.......
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Sep 4, 2023


good up to date
By: H B Suresh | Dt: Sep 2, 2022
Replied to H B SURESH
By: Anil Jain | Dt: Sep 2, 2022
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By: Barkath | Dt: Sep 3, 2022
Replied to barkath
By: Mohd Zibrail Jibrail | Dt: Sep 12, 2023
In between you can't ask for registration and to subscribe. Not Favorable
By: Rajesh Prasad | Dt: Sep 2, 2022
pl send complete article to my e mail id
By: Vmv Subba Rao | Dt: Sep 4, 2022
By: Vikas Kumbhat | Dt: Sep 6, 2022
Excel sheet dowload regarding clause 44 of 3 CD reporting if available pls forward to my mail I'd
Without any charge,you think Sir
this is a service to professional fraternity. Thanks in advance & with
folded hands.
By: Basavaraj Hm | Dt: Sep 15, 2022
Replied to basavaraj hm
Excel auto calculation sheet for download & to report clause 44 of 3CD of TAR,expenses to be reported for AY 22-23 providing details to auditor by the assessee in a easy format & manageable excel auto calculation to report the clause.
By: Basavaraj Hm | Dt: Sep 17, 2022
Replied to basavaraj hm
Dear Sir,

If you have received the excel sheet can you please share it with me. my email address is thanks in advance
By: Uday Dhopeshwarkar | Dt: Sep 5, 2023
Replied to basavaraj hm
Your reply to the query posted yesterday may be posted to mail I d
By: Basavaraj Hm | Dt: Sep 17, 2022
Mail I'd :
By: Basavaraj Hm | Dt: Sep 17, 2022
By: Saramma | Dt: Sep 6, 2023

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