30 May 2021
Sir, A gst registered composite scheme dealer annual return gstr4 filed in f.y.19-20.dealer mistake sales turnover not reported table 6 negative liability show in gstr4 in f.y.20-21. Question: Dealer previous sales turnover added outward supplies setoff negative liability adjustment in gstr4 or gstr9a in f.y.20-21
06 July 2024
In the scenario where a GST registered composite scheme dealer has filed GSTR-4 for FY 2019-20 with a mistake in reporting sales turnover and subsequently shows negative liability in FY 2020-21, here’s how the adjustments can typically be handled:
1. **Adjusting Previous Sales Turnover:** - The dealer should rectify the mistake in reporting sales turnover from FY 2019-20 in the subsequent returns or annual return, depending on the specific provisions and timelines under GST rules. - Sales turnover that was underreported or incorrectly reported in FY 2019-20 should be corrected and accounted for in FY 2020-21.
2. **Setoff Negative Liability in GSTR-4 or GSTR-9A:** - GSTR-4 is the quarterly return filed by composite scheme dealers, while GSTR-9A is the annual return. - To set off the negative liability shown in GSTR-4 for FY 2020-21, the dealer should adjust this against the corrected sales turnover and any tax liabilities applicable for that period. - If the correction involves adjustments beyond what can be accommodated in GSTR-4 for FY 2020-21, such as adjustments related to sales turnover, it might also reflect in the GSTR-9A filed for the entire financial year.
3. **Filing GSTR-9A for FY 2020-21:** - GSTR-9A is the annual return for composite scheme dealers, where all the consolidated details of sales, purchases, and tax payments are reconciled for the entire financial year. - Ensure that the corrected sales turnover and adjustments are appropriately reflected in GSTR-9A for FY 2020-21 to reconcile any discrepancies from previous filings.
4. **Compliance and Rectification:** - It’s crucial to maintain compliance by rectifying any errors promptly. If the negative liability persists due to previous reporting mistakes, ensure to rectify them in subsequent filings and reconcile in annual returns like GSTR-9A.
In conclusion, the dealer should adjust the previous sales turnover and set off any negative liability shown in GSTR-4 or GSTR-9A for FY 2020-21 to ensure accurate reporting and compliance with GST regulations. If there are complexities or persistent issues, seeking advice from a GST practitioner or consultant would be advisable for precise handling of the situation.
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