mahipal m. chande (ca) (216 Points)
05 November 2022In GSTR 3B of a particular month there is no outward supply and hence tax payable on outward supply is nil.
But the ITC of that month is negative due to purchase returns and amendments made by suppliers.
Now question is that how to deal this situation in GSTR 3B?
Should I add negative balance of ITC in outward liability of current month or reduce the ITC of subsequent month to the extent of negative balance of current month?
CA Kushwanth AVSR
(CA in Practice CMA by Qualification)
(1593 Points)
Replied 08 November 2022
No need to add the negative net amount of ITC claimed to outward liability. As during the set off process, the system will treat the negative ITC amount as tax payable and accordingly if you have GST credit, you can utilise that. It is automated process and no need to add it to output tax liability as it will double the amount payable. You can verify that once in the set off page.
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