E - Ledgers under GST: Electronic Cash, Credit and Liability Ledger
The GST portal consists of three pillars that provide a snapshot of all the GST transactions that the taxpayers undertake after obtaining GST registration online. These pillars are the e-ledgers of GST that includes:
- Electronic Credit Ledger
- Electronic Cash Ledger
- Electronic Liability Register
Whether it's about claiming an input tax credit, tax payment, refunds or issue and payment of any demand, the transaction ultimately gets recorded in the above ledgers. So, what exactly these ledgers are and how can persons having GST registration access them? Find out here!
Electronic Credit Ledger
An electronic credit ledger is maintained in Form GST PMT-02. It records all the transactions associated with the availment, utilisation and refund of the input tax credit of the taxpayers. The ITC claimed by the registered person is credited to the electronic credit ledger. When the registered person utilizes the balance lying in the electronic credit ledger for discharge of outward tax liability or claiming refund, then the amount so utilised or refunded gets debited in the electronic credit ledger. In case the refund is inadmissible for any reason, the amount so inadmissible gets re-credited to the ledger. For accessing your electronic credit ledger, navigate as follows:
Login to the GST portal -> Services -> Ledgers -> Electronic Credit Ledger
The dashboard will display the balance lying in your electronic credit ledger as on the current date. You will be provided with 3 options:
- Electronic Credit Ledger: Here, you can open your electronic credit ledger. You need to select the period for which you want to view the ledger. You can view the transactions for a maximum period of 12 months in one go. The ledger will show the date and reference number, tax period, description of the transactions, amount of credits and debits from the ledger under each head and the balance lying under each head.
- Provisional Credit Balance: It shows the provisional and mismatch credit balance.
- Blocked Credit Balance: It shows the balance of blocked ITC.
Electronic Cash Ledger
Form GST PMT-05 is the electronic cash ledger that basically displays the deposits and payments towards tax, interest, fees and penalty on the common portal other than through utilisation of credit. For depositing the amount, the registered person shall use a challan generated in Form GST PMT-06. Once generated, the challan shall be valid for a period of 15 days. For accessing your electronic cash ledger, navigate as follows:
Login to the GST portal -> Services -> Ledgers -> Electronic Cash Ledger
The dashboard will display the balance in the electronic cash ledger as of the current month. You will be provided 3 options:
Electronic Cash Ledger: Here, you can open your electronic cash ledger. You need to select the period for which you need to view the ledger. Similar to electronic credit ledger, the balance can be viewed for a maximum period of 12 months in one go. In the electronic cash ledger, you can view the following details:
- Date of deposit or debit
- Time of deposit
- Reporting date by bank
- Reference No.
- Tax period
- Description of the transaction
- Amount of debit and credit for each tax head
- Closing balance for each tax head
File GST PMT-09 for Transfer of Amount: This provides an option to transfer the balance in the electronic cash ledger from one head to another (discussed later).
View Filed GST PMT-09: Here, you can view all the GST PMT-09 filed by you.
Deposits can be made through the following modes:
- E-payment i.e., through internet banking via the authorised banks
- NEFT or RTGS
- Over The Counter Payment. The limit is Rs. 10,000 per challan for each tax period. However, this limit shall not apply in certain situations like deposits by the government departments or other notified persons, recovery of outstanding dues by proper officers or amounts collected by proper officers during investigation, enforcement activity or any ad-hoc deposit.
The excess balance lying in the electronic cash ledger can be claimed as a refund by filing an application in Form RFD-01A. The amount of refund gets debited in the electronic cash ledger. However, in case the refund application is rejected, then the amount gets re-credited to the electronic cash ledger by the proper officer through an order in Form GST PMT-03.
GST PMT-09 in Electronic Cash Ledger
GST PMT-09 is introduced to facilitate taxpayers who have excess balance in the electronic cash ledger under one head but have to transfer the amount to another head for discharge of liability. The heads have been classified as follows:
Major Heads: IGST, CGST, SGST / UTGST, Cess
Minor Heads: Tax, Interest, Penalty, Fees, Others
Amounts can be transferred from any minor head of a major head to any other minor head of the same major head or any other major head.
Electronic Liability Register
Form GST PMT-01 is the electronic liability register that shows the amount payable by the registered person towards tax, interest, fees or penalty. The payment shall be discharged by debiting the electronic credit ledger or electronic cash ledger and consequently crediting the electronic liability register. For accessing your electronic liability register, navigate as follows:
Login to the GST portal -> Services -> Ledgers -> Electronic Liability Register
The dashboard will provide with two options along with detailed instructions related to Part-II:
- Part-I: Return related liabilities
- Part-II: Other than return related liabilities
Part-I will cover all the liabilities associated with GST returns. Liabilities accruing due to filing of returns and payments against the same will be recorded in this register. Apart from this, liabilities arising due to opting for composition scheme or due to cancellation of GST registration will also get covered under Part-I. The above will get auto-populated in the liability register for the tax period in which the application or order falls.
Part-II covers all the liabilities arising due to reasons other than the filing of GST returns. It includes the following:
- Liability due to enhancement or reduction of the amount payable as per the decision of appeal, revision, rectification, review etc.
- Refund of pre-deposit claimed for a particular demand in case the appeal is allowed.
- Payment made against the issue of show cause notice or any other voluntary payment
- Reduction in the penalty amount in case of payment made after the issue of show cause notice or within the specified time in the act or rules thereunder.
The electronic liability register shall indicate the following:
- The amount payable as tax, late fees, interest or any other amount that becomes payable as per the return furnished by the taxpayer.
- The amount payable as tax, penalty, interest or any other amount consequent to determination by the proper officer pursuant to any proceedings conducted.
- The amount of tax and interest that becomes payable consequent to the mismatch under sections 42, 43 or 50.
- Interest amount that could accrue from time to time.
- The amount of TDS deducted from the payments made or credited by the governmental authorities to the supplier where the total value of supply exceeds Rs. 2.50 lakhs.
- The amount of TCS collected by every e-commerce operator on the net taxable value of supplies made by the suppliers whereby the e-commerce operator collects the consideration of such supplies.
- The amount payable on a reverse charge basis.
- The amount payable under the composition scheme.
- The amount payable as fees, interest or penalty.
- Any other amount under the GST act.
In case the registered person notices any discrepancy in the electronic credit ledger, electronic cash ledger or electronic liability register, then he shall intimate the same to the jurisdiction officer through Form GST PMT-04.
Author : Dipen
Date : 04-Jul-2022