Negative value in GST1

You can show the balance amounts in the subsequent month GSTR-3B and 1 and have zero figure in present month GSTR-3B and 1. Similarly clarified in circular 26 of 2017

In 3B show as zero now and the balance in subsequent months upto October of next FY.

Dear Pankaj Sir,

Refund should only be claimed if we are not able to adjust the balance amount till September of the next FY. This is provided in the circular.

Dear Mayank

There is no where mention in said circular that refund will be granted only till sept of next fy.

quoted "in case where there is no output tax liability against which a credit note can be adjusted, registered person may proceed to file a claim under "Excess payment of tax" if any" through FORM GST RFD-01"

So there is no relevant period is mentioned & above clearly suggested that refund can be claimed in month the liability cannot be adjusted. Moreover it is revenue neutral transaction. once refund is given the taxpayer cannot adjust the same against by reducing his tax liability.

Extracted para 4 of the circular below:

4. It is clarified that as return in FORM GSTR-3B do not contain provisions for reporting of differential figures for past month(s), the said figures may be reported on net basis alongwith the values for current month itself in appropriate tables i.e. Table No. 3.1, 3.2, 4 and 5, as the case may be. It may be noted that while making adjustment in the output tax liability or input tax credit, there can be no negative entries in the FORM GSTR-3B. The amount remaining for adjustment, if any, may be adjusted in the return(s) in FORM GSTR3B of subsequent month(s) and, in cases where such adjustment is not feasible, refund may be claimed. Where adjustments have been made in FORM GSTR-3B of multiple months, corresponding adjustments in FORM GSTR-1 should also preferably be made in the corresponding months.

This clearly states that where adjustment is not feasible, refund could be claimed.

Reading this with Section 34, credit note could be disclosed in GSTR-1 and 3B only upto September (now November) of the next financial year. So only in case where I am not able to adjust till November, the adjustment would not be feasible and hence the refund option.

Dear Mayank

As Per Sub Section (2) of Section 34 of CGST Act prescribe the time limit to issue credit note ie 30th november following end of FY. So one can wait for such adjustment till november . But as such there is no restriction in taking refund before nov month in the case. Moreover i myself have claimed & reced the refund in this case.

Dear Pankaj,

Yes, I agree that there is no restriction in claiming refund. But I feel that refund takes some time and when there is option to adjust in returns, why should we go for the refund option. This is my personal view

Dear Sandeep, 

Yes, I agree with you.