28 April 2022
I have received the following mail from the department
Dear Taxpayer,
It has been noticed that while filing GSTR-4 of the FY 2019-20, you have inadvertently either not filled up table 6 of the said return, or filled up zero values therein, even though you have paid the liabilities for the year through Form GST CMP-08s filed on quarterly basis. Therefore, to nullify the undue credit, the excess amount credited to negative liability statement has to be debited. In case where the amount so credited in negative liability statement, has been utilised; the recovery of amount so utilised is being done by debiting the amount in cash ledger. If sufficient balance is not available in cash ledger, the negative balance in cash ledger shall be adjusted out of the amount deposited through challan.
You are, therefore, requested to:
Deposit the amount equal to the negative balance in cash ledger urgently, in case there is a negative balance. In case you have already paid the amount, now being debited in cash ledger or negative liability statement by including the same in any return/statement, the same can be claimed as refund by filing refund application in Form GST RFD-01. Inconvenience caused is regretted.
THE SITUATION WAS
I am having -5207 each in sgst and cgst in my electronic cash ledger now i made the mistake in GSTR-4 of FY 19-20, they said u have no tax due and returned the amount, which i didnt utilised during first quareter of FY 2021-22, my sale was of 1,00,000, tax due was 500 each for SGST and CGST, but i declared that tax due is 500+5207 = 5507 each for sgst and cgst.
now cash ledger showing negative balance, please help what to do thanks
09 July 2024
Based on the email you received from the department regarding the negative balance in your electronic cash ledger, here are the steps you can take to address the situation:
1. Deposit Amount to Clear Negative Balance: Since you have a negative balance of -5207 each in SGST and CGST in your electronic cash ledger, you need to deposit an amount equal to this negative balance urgently. This can be done through the GST portal by making a payment using the appropriate challan (GST PMT-06). 2. Adjustment and Debiting of Cash Ledger: According to the email, if you have already paid the amount that is being debited in your cash ledger or negative liability statement, you can claim it as a refund by filing a refund application in Form GST RFD-01. Ensure you have proper documentation and evidence of payment to support your refund claim. 3. Filing Correct GST Returns: Going forward, ensure that you correctly declare your tax liabilities in your GST returns (such as GSTR-4 for composition taxpayers). If you have overpaid or underpaid taxes inadvertently, corrections should be made in subsequent returns to avoid further discrepancies. 4. Communication with GST Department: If you have any doubts or need clarification on the process, it’s advisable to communicate directly with the GST department through their helpline or by visiting the nearest GST office. They can provide specific guidance based on your individual case and help resolve any issues with your cash ledger balance. 5. Documentation and Record Keeping: Keep all records, emails, payment receipts, and other relevant documents related to your GST transactions and payments. These will be crucial in case of any audits or further inquiries from the GST department.
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