there is a time limit to do so. As per the GST Act and Rules, a taxpayer can adjust a negative tax liability against positive output tax in the same financial year or in the next financial year, but within a specified time limit.
The time limit is: -
Within the same financial year: You can adjust the negative tax liability in the same financial year, before filing the annual return (GSTR-9/9A). - Next financial year: You can adjust the negative tax liability in the next financial year, within the time limit prescribed for filing the annual return (GSTR-9/9A) of the subsequent financial year.
In your case,
since the negative tax liability arose in June 2023, you can adjust it against positive output tax in: - The same financial year (2023-24): Before filing the annual return (GSTR-9/9A) for 2023-24. - Next financial year (2024-25): Within the time limit prescribed for filing the annual return (GSTR-9/9A) for 2024-25.
Please note that these time limits are subject to change, and you should always check the latest GST laws and regulations.
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