In case there is any negative liability in a tax period and no amount is payable during that tax period by the taxpayer, then such negative liability is maintained by the GST Portal in Negative Liability Statement. The Balance, if any, lying in the Negative Liability Statement, will automatically be adjusted against the liability of subsequent tax period(s). The Negative Liability Statement is only for view purpose by the taxpayers. The Negative Liability Statement is maintained for taxpayers registered under composition levy as of now. The negative liability arising from one Statement / Return can be adjusted against the liability of other Statement / Return.
For E.g.: If Tax Amount of Outward Supplies (CGST+SGST/IGST) = Rs 2,00,000 and Tax Amount of credit notes (CGST+SGST/IGST) issued = Rs 2,50,000, then negative liability = -50000
| Description | IGST | CGST | SGST | Total |
| Tax component on Outward supplies during a tax period say Q1 | 1,00,000 | 50,000 | 50,000 | 2,00,000 |
| Tax component of credit notes issued during the tax period Q1 | 1,00,000 | 70,000 | 70,000 | 2,50,000 |
| Negative Liability (available for utilization towards supplies in future tax periods) | -10,000 | -20,000 | -20,000 | -50,000 |
| Tax component on Outward supplies made during next tax period say Q2 | 10,000 | 15,000 | 15,000 | 40,000 |
| Tax amount adjusted against the Negative Liability | 10,000 | 15,000 | 15,000 | 40,000 |
| Negative Liability (available for utilization in future tax periods) say Q3 | 0 | -5,000 | -5,000 | -10,000 |
In above example, Rs 50000 will be posted as a credit entry in the Negative Liability Statement.
In the next tax period if the total liability is Rs 40,000, then out of Rs 50,000, Rs 40,000 will be utilized. Then, there will be a debit entry posted in the Negative Liability Statement for Rs 40,000.
To view the Negative Liability Statement, perform following steps:
. Access the https://www.gst.gov.in/ URL. The GST Home page is displayed. Login to the GST Portal with valid credentials. Click the Services > Ledgers > Negative Liability Statement option.
2. The Negative Liability Statement page is displayed. Select the ‘From’ and ‘To’ date using the calendar to select the period for which you want to view the Negative Liability Statement. Click the SEARCH button.
Note: You can view the Negative Liability Statement for a maximum period of 12 months at a time.
3. The negative liability statement details are displayed.
4. Click the DOWNLOAD AS CSV button to download and view the negative liability statement in an excel format.
5. The details are displayed in CSV format as shown below.
Negative liability reported for any return period in Net tax payable column of Payment of tax table of GSTR-3B will be credited to Negative liability statement and utilization of such credit in subsequent return period against payment of positive liability shall be debited to Negative Liability Statement.
Taxpayer who is opting out of composition scheme to pay tax as a normal taxpayer and if negative values were reported in last filed return/statement as a composition taxpayer or he/she has balance in Negative Liability Statement, then such negative liability balance will not be carry forward while being converted as a regular taxpayer and taxpayer will not be able to utilize it.
Taxpayer who is opting out from normal taxpayer and opted into composition taxpayer and if negative values were reported in last filed return/statement as a normal taxpayer or he/she has balance in negative liability statement, then such negative liability cannot be adjusted towards the positive liability arise after being converted as a composition taxpayer. However, subsequently again when the taxpayer will opt in as a regular taxpayer then previous negative liability balance will automatically be carry forward and will become opening balance which the taxpayer can utilize.
To view the Negative Liability Statement, perform following steps:
1. Access the https://www.gst.gov.in/ URL. The GST Home page is displayed. Login to the GST Portal with valid credentials. Click the Services > Ledgers > Negative Liability Statement -Regular Taxpayers option.
Or taxpayer can navigate to Services > Ledgers and on clicking of Ledgers tab ledgers dashboard will be displayed on the screen. Click on Negative Liability Statement -Regular Taxpayers hyperlink.
Or taxpayer can access quick link which comes in first screen, after logs in and click on Negative Liability Statement -Regular Taxpayers hyperlink.
2. The Negative Liability Statement -Regular Taxpayers page is displayed. Select the ‘From’ and ‘To’ date using the calendar to select the period for which you want to view the Negative Liability Statement. Click the SEARCH button.
Note: You can view the Negative Liability Statement for a maximum period of 12 months at a time.
3. The negative liability statement details are displayed.
4. Click the DOWNLOAD AS CSV button to download and view the negative liability statement in an excel format.
5. The details are displayed in CSV format as shown below.
6. Taxpayer can also view the Negative Liability Statement on the Dashboard after login.
