GSTN issues ratepayer notice on composition

The Goods and Services Tax Network (GSTN) has issued a notice to taxpayers of composition under the GST.

Since fiscal year 2019-2020, compound taxpayers must pay the debt via GST CMP-08 form on a quarterly basis, while the declaration on GSTR-4 form must be filed on an annual basis after the end of a practice.

The notice released Saturday said the full year’s liability must be reported in GSTR-4 according to applicable tax rates. Taxpayers are required to complete Table 6 of the GSTR-4. In case there is no responsibility, said table can be filled with the value ‘0’. If no liabilities are reported in Schedule 6, it is assumed that no liabilities need to be paid, even though the taxpayer may have paid the liability via the GST CMP-08 form. In such cases, the liability paid through GST CMP-08 becomes the excess tax paid and passes to the negative liability statement for the use of it for the liability of the next tax period.

In accordance with the notice, liability paid through the GST CMP-08 form is automatically populated in Table 5 of the GSTR-4 for the convenience of taxpayers. Taxpayers who do not complete Table 6 of the GSTR-4, i.e. no liability is reported, even though the taxpayer may have paid the liability via the GST CMP-08 form; since the “tax payable” in GSTR-4 is calculated after reduction of the liability reported in GST CMP-08 which is automatically populated in table 5. Thus, if nothing is reported in table 6, then the entry of negative passive appears in GSTR-4.

“In the past, many tickets were received on the Helpdesk to reduce the negative liability of the negative liability statement and the same was in progress. For the convenience of taxpayers, the amount available in negative liability statement has been debited for all taxpayers It was noticed that some taxpayers had used the amount available in the negative liability statement to pay the obligation to file a return in the following year’s GST CMP-08 or GSTR-4 form. such cases, the amount used on the negative liability statement was debited in the cash ledger, however, this liability should have been paid by depositing the amount via challan, but in some cases, the amount had not been deposited by the taxpayers.The taxpayer who deposited the amount in cash, the debited amount was adjusted whereas in case the liability amount was not deposited via challan, the balance in cash sse becomes negative. In such cases, taxpayers are advised to urgently deposit past liabilities through a challan of equal amount,” the notice reads.

The details of the debit thus effected have been communicated to all these taxpayers through e-mails available on the portal. In case the liability was paid by adding the liability of the following years, the same can be claimed as reimbursement through the application in the form GST RFD-01.

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