Payment of Taxes

Electronic Cash Ledger

The amount deposited by the person for taxes, interest, penalty, fees or any other amount will be credited in Electronic Cash Ledger maintained in FORM GST PMT-05. The payment of taxes, Interest, penalty, fees or any other amount can be made by the person through internet banking or through debit card, credit card or through National Electronic Fund Transfer (NeFT) or by Real Time Gross Settlement (RTGS) or any other mode as may be prescribed. If the payment amount is less than ₹ 10,000/- per challan per tax period, he can make the payment through any authorised bank’s counter (OTC).

The amount credited/paid to Electronic Cash Ledger can be adjusted/utilised against payment of taxes, Interest, penalty, fees or any other amount payable as per the provisions and rules of GST Act.

The person making payment has to generate challan No. FORM GST PMT-06 and has to enter the details regarding the amount deposited. The challan generated will be valid for 15 days only from the date of its generation. After making payment Challan Identification Number (CIN) will be generated by the Bank and the said amount will be credited to the Electronic Cash Ledger of the person. If CIN is not generated the same shall be communicated through the common portal in FORM GST PMT-07.

If any payment to be made by unregistered person, he can make the payment on the basis of temporary identification number generated through portal.

Any TDS deducted or TCS collected from the registered taxable person, will be credited to his Electronic Cash Ledger.

If any refund is claimed from the ledger it will be debited to Electronic Cash Ledger and if the refund claim is rejected, it will be recredited to the Electronic Cash Ledger.

Any discrepancy noticed in the ledger can be communicated to the proper officer in FORM GST PMT-04.

Electronic Credit Ledger

The Electronic Credit Ledger will be maintained in FORM GST PMT-02 for each registered person on the Common Portal and the self-assessed eligible input tax credit (as determined u/s. 41) will be credited to this ledger. The amount credited to Electronic Credit Ledger can be utilised against payment of output taxes as determined under the Act. The amount of credit ledger will not be available to adjust against any interest, penalty, fees or any other dues except output tax.

The credit available in the Electronic Credit Ledger should be used in the following order only

INTEGRATED GOODS AND SERVICES TAX (IGST)

IGST FIRST TO IGST

– THEN TO CGST AND

– THEN TO SGST

CENTRAL GOODS AND SERVICES TAX (CGST)

CGST FIRST TO CGST

– THEN TO IGST

STATE GOODS AND SERVICES TAX (SGST)

SGST FIRST TO SGST

– THEN TO IGST

UNION TERRITORY GOODS AND SERVICES TAX (UTGST)

UTGST FIRST TO SGST

– THEN TO IGST

The Electronic Credit Ledger will be credited to the extent of utilisation against output tax. If any refund is claimed for the unutilised amount as per the provisions of Section 54 then the ledger will be debited to that extent. If the refund claim is rejected either fully or partly, then the ledger will be recredited by that amount and order will be issued in FORM GST PMT-03 by the proper officer.

No entry will be made directly in this credit ledger. Any discrepancy noticed in the ledger can be communicated to the proper officer in FORM GST PMT-04.

Electronic Liability Register :

A separate Liability register of the person will be maintained on the common portal, in which liability on account of any tax, interest etc. will be maintained. The dues mentioned in the register will be discharged in the following order :

First the self-assessed taxes and other dues of previous tax period will be adjusted.

Then the self-assessed taxes and other dues of current tax period will be adjusted.

Then any other amount payable / determined as per the provisions of the Act will be adjusted

This register will be maintained in FORM GST PMT-01 and the amount payable will be debited to this register. The dues determined as per the self-assessed return or as per the proceedings of the proper officer or as per the mismatch record or as per any other mode will be debited to this register.

The liability as per the return, will be paid by crediting the electronic liability register and correspondingly debiting the Electronic Credit Ledger or Electronic Cash Ledger. And the liability on account of TDS, TCS, RCM, Composition tax or any interest, tax, penalty, fee or any other dues will be paid by crediting the electronic liability register and by debiting the Electronic Cash Ledger.

Any discrepancy noticed in the register can be communicated to the proper officer in FORM GST PMT-04.

Interest

If the tax is not paid either in full or in part as per the due date, then interest u/s. 50(1) will be levied from the date it became payable to the date it has actually been paid. Interest rate is not yet prescribed but it will not be more than 18% p.a.

If the person has claimed undue or excess credit or has reduced his output tax liability with any wilful intention, he will be liable to pay interest U/s. 50(3) which is maximum to 24% p.a.