Q. 43 In one my client's (Composition dealer) GSTR 4 was filed for FY 2020-2021. In liability column we forgot to enter the amount. Hence all GST paid during the year flowed in to Negative liability statement. For QTR 1 and 2,3 CMP-08 this year (2021-22) the cash has been duly deposited in cash ledger, but the liability has been set-off from this negative liabiluty statement. How to correct this issue? 

Ans. The taxpayer has not filled Table 6 of GSTR-4 due to oversight due to which liability discharged by him during the year through CMP-08 is showing in Negative Liability Statement. To deal with such issues an advisory has been issued by GSTN on 22nd July 2021 wherein it is mentioned that if Table 6 of GSTR-4 has not been filled due to oversight, a ticket may be raised on grievance portal to nullify the amount available in negative liability statement.

Further as an alternative, the taxpayer can use Form DRC-03 to make payment towards the tax liability of current quarter that is offset or adjusted with negative liability of previous year. He can replicate this step for every quarter where such negative liability adjustment from the last year continues in the present financial year.

Q.42 I have query regarding payment of interest for the excess claim of ITC. whether the taxable value for the excess claim of ITC should be considered after deducting the 5% of provisional itc allowed or the total excess claim without deducting provisional itc. 

Ans. Ideally, provisional ITC should be reduced from the wrongly availed ITC.

However, calculation needs to be reviewed properly whether 5% provisional ITC is calculated on the wrongly availed ITC or not.

Q.41 Hall marking charges statutorily to be charged in bill to the customer, whether GST will be paid @ 18% or 3% as bundled service, while jewelry is taxed @ 3% ?  

Ans. It is to be seen from the point of view whether the supply is mixed or composite or both are independent supply.

In case jewelry if hallmark charges are inseparable from the Jewelry or in other words, without hallmark charges if Jewelry cannot be sold in that case it shall be considered as composite supply and tax rate of Jewellery shall be applicable. In case both are separate components, then the respective rate of Jewelry and Hallmark Charges shall apply.