{"id":7276,"date":"2022-05-14T07:01:26","date_gmt":"2022-05-14T06:01:26","guid":{"rendered":"https:\/\/www.gstworld.co.in\/blog\/?p=7158"},"modified":"2022-05-14T07:03:18","modified_gmt":"2022-05-14T06:03:18","slug":"advisory-to-composition-taxpayers","status":"publish","type":"post","link":"https:\/\/www.klickongstworld.com\/blog\/advisory-to-composition-taxpayers\/","title":{"rendered":"Advisory to composition taxpayers"},"content":{"rendered":"<p><strong>Background<\/strong>: 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.<\/p>\n<p><strong>Reason of Negative Liability in  GSTR-4<\/strong>: The liability of the complete year  is required to be declared in GSTR-4 under applicable tax rates. Taxpayers  should fill up table 6 of GSTR-4 mandatorily. In case, there is no liability,  the said table may be filled up with 0 value. If no liability is declared in  table 6, it is presumed that no liability is required to be paid, even though,  taxpayer may have paid the liability through Form GST CMP-08. In such cases,  liability paid through GST CMP-08 becomes excess tax paid and moves to Negative  Liability Statement for utilization of same for subsequent tax period&#8217;s  liability.<\/p>\n<p><strong>What the taxpayer did wrongly<\/strong>: Liability paid through Form GST  CMP-08 is auto-populated in table 5 of the GSTR-4 for convenience of the taxpayers.  Taxpayers who do not fill up table 6 of GSTR-4 i.e. no liability is declared,  even though, taxpayer may have paid the liability through Form GST CMP-08;  since the Tax payable in GSTR-4 is computed after reducing the liability  declared in GST CMP-08 which is auto-populated in table 5. Thus, if nothing is  declared in table 6, then the negative liability entry appears in GSTR-4.<\/p>\n<p><strong>Debit of the negative liability<\/strong> In the past, lot of tickets  were received on the Helpdesk for reducing the negative liability from the  Negative Liability Statement and the same was being done. For convenience of  the taxpayers, the amount available in negative liability statement have been  debited for all taxpayers. It has been noticed that some taxpayers had utilised  the amount available in negative liability statement for paying the liability  to file statement in Form GST CMP-08 or GSTR-4 of subsequent financial year. In  such cases, the amount utilised out of negative liability statement has been  debited in the cash ledger. Though, such liability should have been paid by  depositing the amount through challan but in some cases the amount had not been  deposited by the taxpayers. The taxpayer who have deposited the amount in cash  ledger, the debited amount has been adjusted whereas in case the amount of  liability has not been deposited through challan, the balance in cash ledger  becomes negative. In such cases, the taxpayers are advised to deposit the past  liability through challan of equal amount urgently.<\/p>\n<p>  The details of the debit so made have  been communicated to all such taxpayers through emails available on the portal.  In case, the liability had been paid through adding in the next years liability, the same can be claimed as refund through application in Form GST  RFD-01.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>2022\/05\/gstcouncil.jpg<\/p>\n","protected":false},"author":1,"featured_media":7141,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/posts\/7276"}],"collection":[{"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/comments?post=7276"}],"version-history":[{"count":0,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/posts\/7276\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/media\/7141"}],"wp:attachment":[{"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/media?parent=7276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/categories?post=7276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/tags?post=7276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}