Removal of negative balance in cash ledgers of some composition taxpayers

the Goods and Services Tax Network (GSTN) has removed negative liability/balance from the cash ledger for Composition Taxpayers. The concerned taxpayers can now verify and file the Annual Return in GSTR 4 for FY 2021-22 by 28th July 2022.

Earlier, in April this year, GSTIN requested the taxpayer to deposit the amount equal to the negative balance in the cash ledger urgently, in case there is a negative balance.

GSTN has informed that “Due to the reversal of amount in the cash ledger of some composition taxpayers, the balance in the cash ledgers had become negative. The government has now decided that the negative balance in the cash ledgers of such taxpayers should be nullified. Accordingly, the negative balance has been nullified. All such taxpayers have been informed through email also.”