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Filing of Annual returns by composition taxpayers. – Negative Liability in GSTR-4

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 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 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 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 CMP-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 liability 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 | 22/07/2021

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One Comment

  1. R RAMESH M.COM BBA GSTP says:

    To, 23-07-2021

    Hon.Smt. Nirmala Sitharaman
    Union Minister of Finance, Government of India &
    Chairperson – GST Council
    134, North Block, New Delhi – 110 001

    [email protected]
    Tel: 011-23762656

    Respected Sir/Madam,

    Disaster Relief Covid-19-2 – Request To All # Union Government India – Ministry of Finance – GST Council. Kindly Support – Waiver All the Late Fees. GST, IT, MCA. Extend All Returns Upto 3 Months.
    #AgainRailwayBudget
    #Gstr4CompositionDealersOptional201920and202021
    #GSTAmnestySchemeWithITC

    GST Portal and GST Network 1st July 2017 To 23rd July 2021. 4 Years 22 Days Completed. Infosys Team – GST Server Problem, OOPs, Technical Glitches Continued, Monopoly, Without Customer Service. All India Rural and Urban Areas All the GSTPs, Tax Professionals Faced Lot of Difficulties and More Losses. GST Portal Without User Friendly. Without GST Revision Return Options.
    Real Life Struggles, After GST and GST Portal All the Freedom ??? Silent Killer- GST Portal, Network 2017 To 2021

    More Indifference Between Income Tax and GST.
    Income Tax Due Dates Extended But GST Pending

    GST Common Portal – Disaster Covid-19 Pandemic Lockdown – More than 50 Days All the Shop Closed.
    Kindly Disaster Relief Covid-19. Kindly Extend All
    Waiver All GST Late Fees, Save All

    After 2017 GST and GST Portal Without Care for National Welfare. Monopoly GST Portal Own Decision Power Changed 2021 June GSTR-3B Return 20-07-21 But Old Due Date 22-07-21, 24-07-21 Already Covid-19 and Lockdown Without Relief. Extra Problems Created Every Day GST Portal ???

    2017 To 2021 More GST Notifications, Circulars Issued. Disaster Covid-19 Lockdown and GST Late Fees. One Nation One Tax More Forms More GST Late Fees. Destroyed Tax Professionals, Tax Payers, MSMEs. Tamilnadu State and Other States Unique Identification. Culture, Language, Business, Standard of Living, Architecture, Temples. People, Etc

    CBIC Collects Late Fees of Rs.1516.34 Cr during April 2020 To Feb 2021. Rs.13000 Crores of GST Late Fees Collected under #GST upto February 2021. GST Portal Finally Destroyed Our Tax Profession, Goodwill, Life, Money.

    GST Portal 2021 April asking GSTR -1 HSN/SAC Summary, Not Possible, due to Without Normal Life, Covid-19 Pandemic Lockdown. GST Portal Every Day Changes New Option without Proper Announcement.

    GST Portal Due Date Sunday Holiday,- Working – Sunday Holidays and without Festival Holiday, Without Rest. GST Customer Service Centre. All Languages Press 1. Tamil, 2. Malayalam, 3. Telugu, 4. Kannada, 5. English 6. Hindi, 7. Others. Without GST Subject Knowledge only Time Passing Call Centre People.

    Tamilnadu State More MSMEs Sectors Small and Medium Sectors, More Employees Without Job In the Lockdown Period and Without Production and Without Sales, All the Banks All the EMIs, Various Loans Dues Pending. All India GSTPs, Tax Professionals More Affected. 2020 Lockdown More GST Late Fees Paid – Major Financial Problems. 2021 Lockdown – Major Survival Problems. Kindly Waiver All the GST and Other Late Fees. And Extend Due Dates Upto Three (3) Months.

    All Over India All the Tax Professionals, All the GSTPs, National Federation of Tax Practitioners, and All the States Federation of Tax Practitioners, Trade Associations, Chamber of Commerce Send Email Representation To Union Government India – Ministry of Finance – GST Council – CBIC.

    After 2017 To 2021 GST Portal and GST Network Server Problems Continued. All Over India All Tax Professionals, GSTPs, Faced Lot of Problems., and More Money Losses.

    Union Government India – Ministry of Finance – CBIC – GST – 2019 Gaja Cyclone, Nivar Cyclone, Covid-19, Last Year 2020 Lockdown and 2021 Lockdown Without Relief.

    Request To All # – Government of India – Ministry of Finance -GST Council – #GSTAmnestySchemewithITC GST Late Fees Rs.500/- Nil Return 0 ( No Late Fees)
    and Removal of GST-4 Annual Return 2019-20 and 2020-21

    Reopen – Cancelled GSTIN. Kindly Waiver All GST Late Fees. GSTR 1,4,9,10. GST New Registration Entry Free. GST Cancellation – Exit – GSTR -10 Final Return GST Late Fees Rs.10000/- (CGST Rs.5000/- + SGST Rs.5000/- )

    Every Month More than 1 Lakhs Tax Professionals, GSTPs, Efficiently Workings More Lakhs of Crores GST Revenues Collected. After 2017 To 2021. GST Portal and GST Network Failure. Our Profession,???, Life ???, Family ??? Waiver All GST Late Fees.

    Kindly Issue GSTPs Certificate (Goods and Services Tax Practitioners) in GST Portal. Kindly Allow EVC Facilities in the GSTPs Login. All Over India All the GSTPs Certificates Not Issued, Waiting more than 3 Years.

    Kindly Relief Covid-19…

    Thanking You

    Yours Faithfully

    R.Ramesh M.Com BBA GSTP

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