Nagitive lability in GSTR 1 not showing as input in GSTR 3B
This query is : Resolved
07 August 2024
I have showing IGST value (-) 2873234.15 in GSTR 1
in GSTR 3B not considerding this input
how to solove it
in GSTR 3B not considerding this input
how to solove it
13 August 2025
What’s Happening?
Negative liability in GSTR-1 usually means you have more credit (refund or excess input) or adjustment entries like credit notes, debit notes, or amendments leading to negative outward supplies.
GSTR-3B is a summary return where you declare actual tax liability and input tax credit (ITC).
Sometimes, negative values in GSTR-1 do NOT automatically flow into GSTR-3B ITC fields because GSTR-3B requires actual tax paid or credit available, not just adjustment entries.
Why is Negative Liability NOT showing as ITC in GSTR-3B?
Mismatch in reporting periods:
If negative liability is from previous months or related to credit notes issued for earlier supplies, you need to ensure that ITC adjustment is reflected in the period when credit note is accounted.
Nature of negative liability:
If negative liability arises due to reversal of supplies or credit notes to customers, ITC is not claimed but liability reduced. It’s a reduction in output tax liability, not input tax credit.
Wrong table used in GSTR-1:
Negative liability must be reported correctly in Table 9 (Amendments to outward supplies) or credit note tables, and GSTR-3B ITC should be accordingly adjusted.
ITC claimed only if vendor reports invoice correctly:
Your input tax credit depends on your vendors’ valid invoices, not your negative liability in GSTR-1.
How to solve this:
Check nature of negative liability:
If it’s a credit note issued to customer → reduce output tax liability in GSTR-3B, not ITC.
If it’s a reversal of ITC or excess credit claimed → adjust ITC in the respective GSTR-3B period.
Correct Reporting in GSTR-3B:
In GSTR-3B, enter negative output tax adjustments under Table 3.1 (Output tax) as a reduction in liability.
ITC can be claimed only if you have valid tax invoices from suppliers reflecting ITC eligible inputs.
Match GSTR-1 and GSTR-3B carefully:
Ensure credit notes or debit notes issued and reported in GSTR-1 are reflected in the same month’s GSTR-3B as adjustment in output liability or input credit.
File revised returns if required:
If mismatch persists due to past mistakes, consider revising returns to align GSTR-1 and GSTR-3B.
Summary Table:
Scenario Effect on GSTR-3B Action Required
Negative liability = credit note issued to customer Reduces Output tax liability, not ITC Adjust output tax in Table 3.1 of GSTR-3B
Negative liability = excess ITC or reversal Adjust ITC in GSTR-3B Reflect ITC in Table 4 of GSTR-3B correctly
Mismatched reporting months ITC or liability not reflected File amendment/revised returns
Final Tip:
Negative IGST in GSTR-1 is mostly a reduction in your output tax liability, so you should reflect this as a negative tax payment or adjustment in your GSTR-3B output tax section, NOT as ITC input.
Negative liability in GSTR-1 usually means you have more credit (refund or excess input) or adjustment entries like credit notes, debit notes, or amendments leading to negative outward supplies.
GSTR-3B is a summary return where you declare actual tax liability and input tax credit (ITC).
Sometimes, negative values in GSTR-1 do NOT automatically flow into GSTR-3B ITC fields because GSTR-3B requires actual tax paid or credit available, not just adjustment entries.
Why is Negative Liability NOT showing as ITC in GSTR-3B?
Mismatch in reporting periods:
If negative liability is from previous months or related to credit notes issued for earlier supplies, you need to ensure that ITC adjustment is reflected in the period when credit note is accounted.
Nature of negative liability:
If negative liability arises due to reversal of supplies or credit notes to customers, ITC is not claimed but liability reduced. It’s a reduction in output tax liability, not input tax credit.
Wrong table used in GSTR-1:
Negative liability must be reported correctly in Table 9 (Amendments to outward supplies) or credit note tables, and GSTR-3B ITC should be accordingly adjusted.
ITC claimed only if vendor reports invoice correctly:
Your input tax credit depends on your vendors’ valid invoices, not your negative liability in GSTR-1.
How to solve this:
Check nature of negative liability:
If it’s a credit note issued to customer → reduce output tax liability in GSTR-3B, not ITC.
If it’s a reversal of ITC or excess credit claimed → adjust ITC in the respective GSTR-3B period.
Correct Reporting in GSTR-3B:
In GSTR-3B, enter negative output tax adjustments under Table 3.1 (Output tax) as a reduction in liability.
ITC can be claimed only if you have valid tax invoices from suppliers reflecting ITC eligible inputs.
Match GSTR-1 and GSTR-3B carefully:
Ensure credit notes or debit notes issued and reported in GSTR-1 are reflected in the same month’s GSTR-3B as adjustment in output liability or input credit.
File revised returns if required:
If mismatch persists due to past mistakes, consider revising returns to align GSTR-1 and GSTR-3B.
Summary Table:
Scenario Effect on GSTR-3B Action Required
Negative liability = credit note issued to customer Reduces Output tax liability, not ITC Adjust output tax in Table 3.1 of GSTR-3B
Negative liability = excess ITC or reversal Adjust ITC in GSTR-3B Reflect ITC in Table 4 of GSTR-3B correctly
Mismatched reporting months ITC or liability not reflected File amendment/revised returns
Final Tip:
Negative IGST in GSTR-1 is mostly a reduction in your output tax liability, so you should reflect this as a negative tax payment or adjustment in your GSTR-3B output tax section, NOT as ITC input.
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