Negative GST Liability in GSTR1 and GSTR3B

[PRAVIN TALEGAONKAR]

Dear sir,

In current month we have Negative liability in GSTR-1 for IGST amount in this case we need your guidance for following points:-

1). Is there is negative liability will be display in GSTR-3B in table 6 and same will be adjusted in next month IGST Liability.

2). Shall ITC of IGST will be adjusted CGST and SGST Tax Liability, since there is negative balance in IGST Liability.

Regards

Pravin Talegaonkar

display the to same in GSTR-3B. The negative liability will display in Table 6.

[Padmanathan KV]

Kindly clarify how you have got "negative liability". Is it because you have issued credit notes in the current month?

[Ganeshan Kalyani]

In my view, the negative liability will not populate in GSTR-3B. The same to be maintained in your books till the time its turns out to positive. Till then declare the liability as 0 in IGST.

[Shilpi Jain]

Ensure you disclose the credit note in GSTR-1 and adjust the liability in GSTR-3B as and when IGST liability arises.

Though presently it is allowed to put neagtive figures in the ITC table in GSTR-3B, same is not enabled for liability fields.

[Shilpi Jain]

Also in case you are seeing that in near future there is no possibility of having any IGST liability which can be adjusted against this credit note, you can apply for refund.

[PRAVIN TALEGAONKAR]

Dear All,

The Negative liability is around 1.80 lacs and its due to credit note issued during the month and month of june till date liability around 3.50 lacs.

Regards

Pravin Talegaonkar

[Ravikumar muthusamy]

you can edit 3B and adjust CGST and SGST liabilities if any with the negative IGST amount and submit letter to jurisdiction

[Padmanathan KV]

I agree with views of Shilpi Ma'am.

AI Summary

Negative IGST liability: disclose credit notes in GSTR 1 and hold or refund until IGST arises for adjustment in GSTR 3B.
A taxpayer has a negative IGST liability in GSTR-1 due to credit notes. Credit notes must be disclosed in GSTR-1, but the GST portal does not permit negative figures in GSTR-3B liability fields; taxpayers therefore often declare IGST liability as nil until positive IGST arises. Options discussed include holding the negative balance in books until adjusted, applying for a refund if no future IGST liability is expected, or attempting manual adjustments in GSTR-3B to offset CGST/SGST with a jurisdictional letter, reflecting mixed procedural practice.