TMI BlogFiling of Annual returns by composition taxpayers. - Negative Liability in GSTR-4X X X X Extracts X X X X X X X X Extracts X X X X ..... Filing of Annual returns by composition taxpayers. - Negative Liability in GSTR-4 - Goods and Services Tax - GST Dated:- 23-7-2021 - News - Filing of Annual returns by composition taxpayers. - Negative Liability in GSTR-4 Instances have come to notice where taxpayers are reporting negative liability appearing in their GSTR-4 Background: Since FY 2019-20, composition taxpayers has to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the liability through Form GST CMP-08 on quarterly basis while GSTR-4 Return is required to be filed on annual basis after end of a financial year. Reason of Negative Liability in GSTR4 : The liability of the complete year is required to be declared in GSTR-4 under applicable tax rates. Taxpayers should fill up table 6 of GSTR-4 mandatorily. In case, there is no liability, the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... table may be filled up with 0 value. If no liability is declared in table 6, it is presumed that no liability is required to be paid, even though, taxpayer may have paid the liability through Form GST CMP-08. In such cases, liability paid through GST CMP-08 becomes excess tax paid and moves to Negative Liability Statement for utilization of same for subsequent tax period s liability. What ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the taxpayer did wrongly: Liability paid through Form GST CMP-08 is auto-populated in table 5 of the GSTR-4 for convenience of the taxpayers. Taxpayers who do not fill up table 6 of GSTR-4 i.e. no liability is declared, even though, taxpayer may have paid the liability through Form GST CMP-08 ; since the Tax payable in GSTR-4 is computed after reducing the liability declared in GST CM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P-08 and then auto-populated in table 5. Thus, if nothing is declared in table 6, then the negative liability entry appears in GSTR-4 . How to proceed in case of negative liability: If table 6 of GSTR-4 has not been filled due to oversight, a ticket may be raised to nullify the amount available in negative liability statement. If there is no liability to be paid during the year, the liabi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity paid through Form GST CMP-08 shall move to negative liability statement and the same excess amount can be utilised to pay the liability of future tax periods. Thanking You, Team GSTN - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
