NEGATIVE ITC IN 3B

This discussion addresses how to handle negative Input Tax Credit (ITC) in GSTR 3B when there are no outward supplies but ITC exceeds the tax payable due to purchase returns or supplier amendments. The advice given is not to add the negative ITC balance to the current month's outward liability. Instead, the system automatically handles this during the set-off process, treating the negative ITC as tax payable which can be utilised against existing GST credit, preventing double payment.