Negative IGST Amount in GSTR-1 did not show in GSTR-3B

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This query is : Resolved

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A user reported that negative IGST amounts from credit notes issued in GSTR-1 were not reflecting in their GSTR-3B, preventing manual adjustments. The advice given was that GSTR-3B doesn't accept negative values, and while the credit notes were correctly reported, it would have been better to split them across months for smoother GSTR-3B reconciliation. The suggested workaround is to reduce the tax liability in subsequent months' GSTR-3B filings, with a caution about potential notices but reassurance that the process is compliant.

Hari Nandan

Hari Nandan (Querist)

20 April 2023 I had issued credit notes in the month of November 2022 for 2 inter-state parties amounting to nearly 60,000 IGST. It resulted in negative IGST value in GSTR-1 as there were no inter-state sales for the particular month. However, while paying up in GSTR-3B, IGST amount was ZERO and was not accepting any manual change. Please suggest how to go forward about it. Will wait for few days if you can suggest possible solutions. Thank you.

CA SANDESH MAHIPAL

CA SANDESH MAHIPAL (Expert)

23 April 2023 GSTR-3B does not accept negative values. As per law, you have done correctly by reporting both CN in the month of issuance. But due to system limitations, it could have been better if you would have shown one CN in one month and another in next month gstr1 so that it could be adjusted in 3B. Now in present situation, You can reduce remaining tax amount from next month's 3B liability. Although it may cause issuance of notice to you but don't worry you are not doing anything non compliance, just be ready with reconciliation only. Feel free to contact for further assistance. Regards

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Hari Nandan

Hari Nandan (Querist)

23 April 2023 Thank you Sandesh. Will do as suggested.

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