17 July 2021
A Composition Taxpayer didn't fill column 6 of GSTR 4 in FY 2020-21 and total tax paid in FY 2020-21 is credited in Negative Liability Statement. As a result the taxpayer can't able to create challan and pay the tax for APR-JUN qtr 2021 in cash as the tax amount adjusted with Negative Liability. Now, in this situation, what is the suitable solution for this issue.
17 July 2021
Suppose Annual Turnover in FY 2020-21 was Rs. 30 lac and due to no filling column 6 of GSTR4, that 30 lac treated as returned sale and tax amount credited in Negative Liability Statement. Now the turnover for APR-JUN qtr 2021 is Rs. 8 lac. But in order to overcome from Negative Liability, the taxpayer need to show (30+8)= 38 lac turnover in APR-JUN 2021 qtr. In this case the turnover for current financial year will be a big amount which is actually not and previous years turnovers remains zero. So, there is a chance of problem arise in future. Kindly give suitable suggestion regarding this issue.
17 July 2021
Correct Method is to show April- June 2021 turnover only in CMP-08. It is advisable to pay the liability of F Y 20-21 by DRC-03 . and pay tax of current year through negative liability statement.
CAclubindia
