Solution of Negative Liability Issues in GST CMP 08 on Portal

There is various assessee who is seeing the issues and is not able to furnish the CMP and create the challans because of shadowing the negative liability in GST CMP 08 on the GSTN portal.

What Do You Mean by Form GST CMP 08?

Form GST CMP-08 Get to know the step by step guide of filing GST CMP 08 return form online for depositing payment on official GST portal. The form is required to file every quarter Read more is practiced to declare the information or summary of self-assessed tax which is liable to pay for the provided quarter through the assessee who is enrolled as composition taxable individual or assessee who has chosen for composition levy.

The assessee who either posses the enrolled as composition taxable individual via Form GST REG 01 or assessee who has chosen the composition levy through Form GST CMP-02 urged to furnish Form GST CMP 08.

Meaning of Negative Liability?

Negative Liability management reveals that any negative entry performed in the present quarter shall be carried forward to the subsequent quarter.

If you had furnished GSTR-4 Learn the GSTR 4 form filing online step by step procedure for composition scheme taxpayers. Also, we have attached GSTR-4 format for easy understanding for the fiscal year 2019-20 or 2020-21 which you provided the information of the turnover and the tax furnished in Table No. 6. But the majority of the assessee has not entered the information of the turnover and the tax furnished in Table No.6.

As a result, the management shall be displayed in the ‘Adjustment of negative liability of past tax period’ Table 4 column of the GSTR-4 next quarter GST CMP-08 filing. Thus the portal is showing that you had furnished the summary of CMP-08 but as the turnover was zero so there is no liability to furnish the tax.

How to Handle the Situation?

According to the law, the assessee who has not given the information of the turnover and the tax furnish in Table No.6 GSTR-4 shall have to furnish the objection then provide in the writing to your jurisdictional officer asking him to eliminate the Negative Liability, which might be time taking. But there are various other methods that are drawn through the experienced people in the market where it is not legally prescribed anywhere:

Cash Payment

The assessee is furnishing the tax in cash by other challan and depositing that in the cash ledger and when they shall urge for that it shall be in writing to the jurisdictional officer for all the scenes that the negative liability will not permit them to file the CMP-08 who has opted this method.

A cash ledger has the deposits which an assessee had build and any GST payments Check out due dates of payment under GST for general and composition taxpayers in India. We have included penalty charges on late payment with interest build through the cash. The cash ledger has the details of head wise like CGST, IGST, CESS, and SGST/UTGST. including these categories (IGST, SGST, etc.) are divided into five minor heads -Tax, Interest, Penalty, Fees, etc. Electronic Cash Ledger is supported on the GST Portal.

Furnish via DRC 03 Under GST

DRC-03 is the form beneath the GST law which needs to be furnished for voluntary tax payments for the demand or tax shortfall noticed after some time post to the time limit to furnish the return of the FY expires. CGST Rule 142(2) and (3) include this form.

Boost the Turnover

Individuals are suggesting that you night raise the turnover of the past year.

Extend the Tax Amount

People are recommending that they confer the same turnover but arise the tax amount according to the amount of the negative liability reason being that it will be the negative liability and the assessee is able to furnish the particular tax amount which he needs to furnish.