To check negative liability in GST, log in to the GST Portal, navigate to Services > Ledgers > Negative Liability Statement, and select the desired date range (up to 12 months). This statement, primarily for composition taxpayers (CMP-08), shows negative balances carried forward for automatic adjustment against future liabilities.
To view the Negative Liability Statement, perform following steps:
Login to the GST Portal with valid credentials.
For negative balance in RCM Liability/ITC Statement, taxpayer need to either pay the additional RCM liability equivalent to negative closing balance in Table 3.1(d) or reduce the ITC claimed in Table 4A(2) or 4A(3) to the extent of closing balance in the current return period.
If you have an amount owing, you can view a balance that includes interest calculated to a date you select in your CRA account: Sign in to your CRA account. Select your Business or Representative account. Beside the amount owing, choose View and pay account balance.
GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. To work out the cost of an item including GST, multiply the amount exclusive of GST by 1.1.
Method 2: CRA My Business Account (Most Secure – Under 5 Minutes)
The negative liability arising from one Statement / Return can be adjusted against the liability of other Statement / Return. For example: You have some negative liability from Form CMP-08, the same can be adjusted while you are filing form GSTR-4, if there are any liabilities to be paid.
Taxpayers can navigate to the statement on the GST Portal by following this path: Services >> Ledger >> RCM Liability/ITC Statement.
Reasons for Negative Current Liabilities on a Balance Sheet
If only one liability account has a negative sign, it is likely that the liability account has a debit balance instead of the normal credit balance. This would be the case if a company remitted more than the amount needed.
For example, when you sell a product at ₹50,000 and the applicable GST rate is 18%, your output GST is ₹9,000 (₹50,000 x 18%). Input GST is the tax you pay on the goods or services you purchase for your business. You can claim this amount as an Input Tax Credit (ITC) to reduce your total GST liability.
The recipient has to report in Table 3.1 (D) of GSTR-3B (inward supplies liable to reverse charge). The recipient has to discharge the liability through electronic cash ledger while filing his GSTR-3B. The recipient can utilise ITC on purchases under RCM only in the next tax period.
Negative values in GSTR-3B are values that are less than zero. They can occur in the following cases: When the value of all credit notes exceeds the total value of outward supplies and debit notes in Table 4B. When a taxpayer has a negative ITC balance.
To access the Tax liabilities and ITC comparison reports, perform following steps:
The Negative List Under GST. Under the Goods and Services Tax (GST) framework, the negative list identifies specific goods and services that are exempt from GST obligations. Defined in Schedule III of the CGST Act, these exclusions clarify which items do not fall within the GST tax regime.
Some common examples of negative liability include: A payment posted twice against the same vendor invoice. An overpayment to a subcontractor. Reversals of retainage held without adjusting the related receivable.
The GSTR-2A is a dynamic statement that gets updated whenever a taxpayer's suppliers file their GST return of outward supplies. On the other hand, the GSTR-2B is a static statement containing details of input tax credit only for a particular return period.
RCM Liability/ITC Statement is a statement/ledger that is maintained on the GST portal used for tracking RCM transactions of a particular GSTIN and ITC claimed therefrom. Whenever RCM liabilities are declared in Table 3.1(d) of GSTR-3B of any tax period, the data is automatically fetched in this statement.
Reverse Charge Mechanism under GST is a mechanism under which the usual cycle of tax payment is reversed. Under Reverse Charge, the recipient pays to the supplier an amount exclusive of GST, the recipient then pays the GST directly to the Government. RCM is a complex concept that works in select scenarios only.
Apply Offset Rules:
If the customer defaults on payment, it leads to bad debts, but the GST law does not provide a mechanism to recover the tax paid on such bad debts. Supply is made, Goods and Services Tax is paid but amount is not recoverable from Customer.
Businesses are required to register for GST and pay tax on their annual turnover if their annual revenue exceeds Rs. 40 lakhs in the case of goods supplied and Rs. 20 lakhs for the supply of services.
Online using myGov
Use your myGov account linked to the ATO to check your outstanding balance and when your payment is due.
To make the GST payment post-login to the GST Portal once the challan is generated, perform the following steps:
Calculating how much GST you owe
When you purchase goods and services for your business, you'll also be paying GST on those bills. To calculate how much you need to remit, add up all the GST you collected during the period and subtract all the GST you paid during the period to get your net GST payable.