Blog

2022

Electronic Ledgers under GST

Electronic Ledgers under GST Blog Post

E-Ledger is an electronic form of passbook for GST. Under the Goods and Services Tax, the taxpayers can maintain electronic ledgers. These e-ledgers are available to all GST registrants when they login to GST Portal. Whenever a taxpayer undertakes an activity related to these electronic ledgers, the concerned ledger then gets updated in real-time. Also, the details in the electronic ledgers get auto-populated from previous returns that were filed.

In simple words, the electronic ledger is an e-passbook for GST maintained in the GST portal. A registered taxpayer has 3 different electronic ledgers under GST. It is created during the GST registration process. Following are the details of the e-ledgers: 

  • Electronic Cash Ledger: Amount of GST deposited in cash to government in Electronic Cash Ledger.
  • Electronic Credit Ledger: Balance of Input Tax Credit available (ITC) in Electronic Credit Ledger.
  • Electronic Liability Ledger: Manner of Setoff of GST liability and balance liability (if any) Electronic Liability Ledger.

Let us discuss each type of ledger into details.

Electronic Cash Ledger [GST PMT-05]:

  • An Electronic Cash Ledger is like an e-wallet of the tax payer maintained on GST portal. Like any other e-wallet we can add money to it or we can make payment from it. All type of GST liabilities can be discharged from the electronic Cash Ledger.
  • Any GST payment made in cash or through bank reflects in Electronic Cash Ledger.
  • After deduction of Input Tax Credit (ITC) any balance tax liability has to be paid using balance in Electronic Cash Ledger.
  • Example: Mr. X has a GST on sales of Rs 50,000. He also has an Input Tax Credit on purchases of Rs 25,000. He does not have any Input Tax Credit available. In this case Mr. X must make entire payment though electronic cash ledger.

Payment through E-Cash Ledger:

  • Electronic Cash Ledger is an account of the taxpayer maintained by GST system reflecting the cash deposits in recognized Banks and payments of taxes and other dues made by the taxpayer.
  • A taxpayer can make GST payment through online banking, credit or debit card, wire transfer, or over the counter payment.
  • You can see the paid amount in this ledger and it is accessible for the taxpayer, authorized signatories, GST practitioners, and the Jurisdictional Officials.
  • If the GST payment is over Rs.10,000, you can only pay it through a bank.
  • The Electronic Cash Ledger contains a summary of all the deposits/payments made by a taxpayer.
  • The Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) are also accounted for in the Electronic Cash Ledger as cash deposits of the taxpayer.

Heads in Electronic Cash Ledger:

  • A taxpayer must also specify the heads under which GST payments are made.
  • The electronic Cash Ledger has two types of heads namely Major Head and Minor Head.Information is maintained minor head-wise for each major head. However, for convenience of user, the ledger is displayed major head-wise.
  • Electronic Cash Ledger can be accessed after post-login on GST portal under Services

Major Heads:

  • IGST;
  • CGST;
  • SGST/UTGST;
  • Cess.

Minor Heads: Each major head is divided into five minor heads as follows:

  • Tax;
  • Interest;
  • Penalty;
  • Fee;
  • Others.

Electronic Credit Ledger [GST PMT-02]:

All eligible Input Tax Credit that is claimed by a registered dealer in the GST returns (GSTR-2 or GSTR-3B) reflects in Electronic Cash Ledger.
Credit in Electronic Cash Ledger can be used only for set off of tax liability of IGST/CGST/SGST. This means that balance of Electronic Credit Ledger cannot be utilized for payment of interest, penalty or late fees.
Interest and Penalty can be paid only through actual cash payment.
An electronic credit ledger under GST records all the tax payments made by a taxpayer.

Order of Utilization of GST Credit among various heads:

Head of Tax

Manner of Set off

IGST

Credit of IGST can be utilized against any tax liability in this order – IGST, CGST, SGST/UTGST.

CGST

Credit of CGST cannot be utilized for payment of SGST. It can be set-off in the following order – CGST, IGST.

SGST

Credit of SGST/UTGST cannot be utilized for payment of CGST. SGST can be set-off in the following order – SGST/UTGST, IGST.

  • Electronic Credit Ledger auto fetches the data based on the GSTR-1 and GSTR-2 returns filed by all registered taxpayers under GST. So, to compensate GST liability you can use the credit in your electronic credit ledger.
  • GST portal will generate a unique identification number for your every debit/credit to the electronic cash/credit ledger.

 

Important Note:

The following changes in relation to availment of ITC are proposed w.e.f. 1st January 2021:

  • ITC shall be available as per the invoices uploaded by the respective suppliers either in their GSTR-1 or by using the Invoice Furnishing Facility (IFF).
  • The recipients can claim a provisional input tax credit in GSTR-3B to the extent of 5% instead of earlier 10% of the total ITC available in GSTR-2B for the month.
  • Certain taxpayers cannot make GST payment from their electronic credit ledger in excess of 99% of the total tax liability for the tax period as per a new rule 86B.

 

Electronic Liability Ledger [GST PMT-01]:

  • The liability of a taxpayer under the Goods and Services Tax (GST) is reflected in the electronic liability ledger.
  • The ledger contains the total GST liability and the manner in which it has been paid – in cash or through credit.
  • This includes the tax due on GST return filing, penalty, and demands. It also displays the amount that is paid to discharge the liability through the credit balance available in the other two ledgers.

 

Different GST Forms: 

Sl. No.

GST Payment Form

Details

Role

1

GST PMT-01

Electronic Liability Register

Any tax, interest, penalty, late fee, or any other amount will be debited to this register.

2

GST PMT-02

Electronic Credit Ledger

All the ITC claims will be credited to this ledger.

3

GST PMT-03

Refund to be re-credited

Refund of unclaimed ITC, if rejected, the amount debited from the Electronic Credit Ledger, will be re-credited by order of a proper officer.

4

GST PMT-04

Discrepancy in Electronic Credit Ledger

Any discrepancy in Electronic Credit Ledger is communicated to an officer through this form.

5

GST PMT-05

Electronic Cash Ledger

Any tax, interest, penalty, late fee, or any other amount to be deposited in cash is credited to this ledger.

6

GST PMT-06

Challan for deposit of tax, interest, penalty etc.

Generate and pay a challan.

7

GST PMT-07

Application for discrepancy relating to payment

This application is meant for the taxpayer where the amount intended to be paid is debited from his account but CIN (Challan Identification Number) has not been generated or generated but has not been reported to the Government Portal within 24 hours of debit.

 

 

 

 

 

 

 

 

 

Blog Archive


Warning: mkdir(): No such file or directory in /home/bge9b4q3b1qk/public_html/munimji/academic/modules/mod_lca/cache.php on line 56

Warning: file_put_contents(/home/bge9b4q3b1qk/public_html/munimji/academic/cache/mod_lca/57e55f700d1772126b4bb8d207c1e29f.xml): failed to open stream: No such file or directory in /home/bge9b4q3b1qk/public_html/munimji/academic/modules/mod_lca/cache.php on line 57

Financial Management