LIABILITY ADJUSTMENT

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This query is : Resolved

Priyanka Roy (Querist)
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20 July 2026 IN GSTR 3B CGST & SGST LIABILITY IS NEGATIVE BECAUSE OF EXCESS CREDIT NOTE. CAN WE ADJUST THIS EXCESS AMOUNT FROM IGST LIABILITY. AS WE EXPECTED THERE IS NO SALE IN NEXT MONTH ALSO SO WHAT WE DO THIS NEGATIVE LIABILITY.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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21 July 2026 Negative CGST and SGST liability arising from excess credit notes cannot be cross-adjusted against IGST outward liability in GSTR-3B. The portal requires the excess amount to be carried forward to offset future CGST/SGST sales. However, since the business anticipates no future sales, the correct course of action is to stop carrying it forward and instead file a refund application via GST RFD-01 under the "Excess payment of tax" category to recover the amounts from the government.

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