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Negative liability

Ajay jangir (no) (124 Points)

21 July 2021

I have face negative liability while I am filing CMP-08. anyone have solution about this problem?

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5 Replies

Deepak Kumar (791 Points)
Replied 21 July 2021

Please elaborate you querry

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CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 21 July 2021

Please elaborate in details

Ajay jangir (no) (124 Points)
Replied 21 July 2021

I unable to create challan for cmp 08. negative liability show and adjust with current quarter tax.

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 21 July 2021

Dear Ajay
This problem is being faced by every composition dealer who made the mistake in filing their GSTR 4 (Annual return) for Fy 2020-21.
while filing GSTR 4 , for Fy 2020-21 you have Not report the Tax liability in table 6 of GSTR 4 , so the tax deposited for the period (2020-21) will be transferred to Negative Liability Statement.
So those who have not reported the liability in table 6 of GSTR 4 , the liability declare for the year assumed to be NIL & the tax deposited for that year is get transferred to your Negative Liability Statement.

Thus it is adjusting your Qtr liability from Negative Liability Statement.
So it is better to compute your liability manually & generate the cash challan for the same then set-off the liability for Qtr from cash Ledger.

Note :
Those who have filed their CMP08 for current Qtr by adjusting liability from Negative Liability statement ,should pay the tax in Cash Ledger for the Qtr & file DRC 03 to setoff the same.