After the Goods and Services Tax is implemented, every individual taxpayer registering under GST will be able to access the GST common portal by using their individual login credentials. After a successful login, the taxpayers will be able to access the dashboard and all the various features being presented. Under the GST common portal, every taxpayer will also be able to access the three kinds of electronic ledgers under GST.
What are Electronic Ledgers under GST?
Once a taxpayer is done with their registration process under GST, the common portal (GSTN) will maintain and display the E-ledgers or Electronic ledgers under GST. These ledgers will provide the necessary information such as tax dues, tax liability, and tax deposited, input tax credit earned and utilized, refunds granted, and the information related to interest and penalties.
Three kinds of Electronic ledgers under GST will be displayed on a real-time basis. These are Electronic Cash Ledger, Electronic Credit Ledger, and Electronic Liability Ledger.
Electronic Ledgers under GST – Cash Ledger
Cash Ledger will display the deposits that were made using cash and Tax Deducted at Source(TDS) or Tax Collected at Source (TCS) made on account of the taxpayer. This ledger can be used for making any payments on account of GST. All the information will be displayed on a real-time basis.
As per the Rule 3 of Payment of tax rules, the electronic cash ledger mentioned under section 49(1) shall be maintained in common portal in form GST PMT-5.
The format of form GST PMT-5 is as follows:-
The amount as per payment rule can be deposited by any of the following modes:
i) Internet Banking through authorized banks;
ii) Credit card or Debit card through the authorized bank;
iii) National Electronic Fund Transfer (NEFT) or Real Time Gross Settlement (RTGS) from any bank;
iv) Over the Counter payment (OTC) through authorized banks for deposits up to ten thousand rupees per challan per tax period, by cash, cheque or demand draft.
Provided that the restriction for deposit up to ten thousand rupees per challan in case of an Over the Counter (OTC) payment shall not apply to deposit to be made by-
a) Government Departments or any other deposit to be made by persons as may be notified by the Board/Commissioner (SGST) in this behalf;
b) Proper officer or any other officer authorized to recover outstanding dues from any person, whether registered or not, including recovery made through attachment or sale of movable or immovable properties;
c) Proper officer or any other officer authorized for the amounts collected by way of cash or cheque, demand draft during any investigation or enforcement activity or any ad hoc deposit:
Electronic Ledgers under GST – Credit Ledger
The Input Tax Credit which is self-assessed in the return of a registered person shall be credited under the Electronic Credit Ledger. The monthly returns of the registered taxpayer are reflected under three categories – IGST, CGST, and SGST.
Some important points with regards to Electronic Credit Ledger –
a) As per sub-rules 2(1) of payment of tax rules the electronic credit ledger for each taxable person shall be maintained in format GST PMT -2 and every claim of input tax credit under the Act shall be credited to the said Ledger.
b) The credit in this ledger can be used to make payment of TAX ONLY and not other amounts such as interest, penalty, fees etc.
c) The electronic credit ledger shall be debited to the extent of discharge of any liability in accordance with section 49.
d) Where a registered person has claimed a refund of any unutilized amount from the electronic credit ledger in accordance with the provisions of section 54, the amount to the extent of the claim shall be debited in the said ledger.
e) If the refund so filed is rejected, either fully or partly, the amount debited under subrule (3), to the extent of rejection, shall be re-credited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-03.
f) Save as provided in these rules, no entry shall be made directly in the electronic credit ledger under any circumstance.
e) A registered person shall, upon noticing any discrepancy in his electronic credit ledger, communicate the same to the officer exercising jurisdiction in the matter, through the Common Portal in FORM GST PMT-04.
Note: For the purpose of this rule, a refund shall be deemed to be rejected, if the appeal is finally rejected or if the claimant gives an undertaking to the proper officer that he shall not file an appeal.
Electronic Ledgers under GST – Liability Ledger
Electronic Liability Ledger will reflect the total tax liability of a taxpayer (after netting) for the particular month. This ledger is specified under sub-section (7) of section 49 and shall be maintained in FORM GST PMT-01 for each person liable to pay tax, interest, penalty, late fee or any other amount on the Common Portal and all amounts payable by the taxpayer shall be debited to the said ledger.
The format of the form is as follows:-
Part I – Return related liabilities
Part II – Other than return related liabilities
The Electronic Liability Ledger of the person shall be debited by:-
i) the amount payable towards tax, interest, late fee or any other amount payable as per the return furnished by the said person;
ii) the amount of tax, interest, penalty or any other amount payable as determined by a proper officer in pursuance of any proceedings under the Act or as ascertained by the said person;
iii) the amount of tax and interest payable as a result of mismatch under section 42 or section 43 or section 50; or
iv) any amount of interest that may accrue from time to time.
Some important points related to Electronic Liability Ledger –
1) Subject to the provisions of Section 49, payment of every liability by a registered person as per his return shall be made by debiting the electronic credit ledger maintained as per rule 2 or the electronic cash ledger maintained as per rule 3 and the electronic liability register shall be credited accordingly.
2) The amount deducted under Section 51, or the amount collected under section 52, or the amount payable on reverse charge basis, or the amount payable under section 10 any amount payable towards interest, penalty, fee or any other amount under the Act shall be paid by debiting the electronic cash ledger maintained as per rule 3 and the electronic liability register shall be credited accordingly.
3) Any amount of demand debited in the electronic liability register shall stand reduced to the extent of relief given by the appellate authority or Appellate Tribunal or court and the electronic tax liability register shall be credited accordingly.
4) The amount of penalty imposed or liable to be imposed shall stand reduced partly or fully, as the case may be if the taxable person makes the payment of tax, interest, and penalty specified in the show cause notice or demand order and the electronic liability register shall be credited accordingly.
5) A registered person shall, upon noticing any discrepancy in his electronic liability ledger, communicate the same to the officer exercising jurisdiction in the matter, through the Common Portal in FORM GST PMT-04.
Identification number for each transaction
A unique identification number shall be generated at the Common Portal for each debit or credit to the electronic cash or credit ledger, as the case may be.
The unique identification number relating to the discharge of any liability shall be indicated in the corresponding entry in the electronic liability register.
A unique identification number shall be generated at the Common Portal for each credit in the electronic liability register for reasons other than those covered under sub-rule (2).