In a major relief to composition taxpayers, the Goods and Services Tax Network (GSTN) has removed negative liability/balance from the cash ledger. 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. And now, after reporting issues of the taxpayers, the system has removed this.
Since FY 2019-2020, composition taxpayers have to pay the liability through Form GST CMP-08 on a quarterly basis while GSTR-4 Return is required to be filed on annual basis after the end of a financial year.
A negative Liability Statement refers to a report available on the GST portal that shows any negative summary in Form CMP-08 for the present quarter that will be carried forward to the next quarter for adjustment against the next quarter’s liability.
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