Quick Summary
Background Since FY 2019-20, composition taxpayers has to pay the liability through Form GST CMP-08 on quarterly basis while return in Form GSTR-4 is required to be filed on annual basis after end of a financial year. Reason of Negative Liability in GSTR-4 The liability of the complete year is re
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FAQ :
Composition taxpayers must use Form GST CMP-08 to pay their tax liability on a quarterly basis.
Form GSTR-4 is required to be filed annually by composition taxpayers after the end of a financial year.
A negative liability can occur if taxpayers pay their liability through Form GST CMP-08 but fail to declare any liability in Table 6 of GSTR-4. This leads to the amount paid in CMP-08 being treated as excess tax.
GSTN has debited amounts from the Negative Liability Statement for taxpayers who had negative balances, for convenience.
Taxpayers with a negative cash ledger balance due to un-deposited past liabilities are advised to deposit the equal amount urgently through a challan.
Yes, if the liability was paid by adding it to the next year's liability, the taxpayer can claim a refund by applying in Form GST RFD-01.
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