Payment Under GST

Payment under GST
Electronic Cash Ledger
Section 49 3 Ledgers Electronic Credit Ledger
Electronic Liability
Register
• The Electronic Cash
Ledger contains a
summary of all the
deposits/payments
Electronic Cash made by a taxpayer.
Ledger
• Electronic Cash Ledger
is maintained on the
GST Portal.
Format of Ledger
Debit Credit
 Credit amount of this Ledger  Any deposit made towards

may be used for payment of -
tax, interest, penalty, late fees
etc.  Tax
 Interest
 Remaining credit balance  Penalty
amount after payment of tax,  Late fees
interest, penalty, late fees etc.  Etc.
will be refunded to taxable
person.
Mode of deposit in
Online Payment Offline Payment
 Internet Banking  NEFT/RTGS - No Limit of

deposit
 Credit/Debit Card
 Over the counter (OTC) –
Note – Up to Rs. 10,000 per challan
No Limit of deposit in case of per tax period by Cash/
online payment Cheque / Demand Draft
Payment by Challan
Step 1 – Create Challan
• Step 2 – CPIN - Valid for 15 days
• CPIN stands for Common portal Identification Number.

• It is created for every Challan successfully generated by
the taxpayer.
• It is a 14-digit unique number to identify the challan.
• CPIN remains valid for a period of 15 days.
• Step 3 – CIN
• On successful credit of amount in the concerned (Central/State) Government

Account maintained in the authorized bank, a Challan Identification Number (CIN)
will be generated by the collecting bank which will be indicated in the challan.
• CIN or Challan Identification Number is generated by the banks, once payment in lieu
of a generated Challan is successful.
• It is a 17-digit number that is 14-digit CPIN plus 3-digit Bank Code.
• It is an indication that the payment has been realized and credited to the appropriate
government account.
• CIN is communicated by the authorized bank to taxpayer as well as to GSTN.

• Step 4 – Credit of amount in Electronic Cash Ledger
• On receipt of the CIN from the collecting bank, the said amount is credited into
the electronic cash ledger of the person on whose behalf the deposit is made
and the common portal will generate a receipt to this effect.
• If CIN is not generated even after making payment and submission of mandate
form or when after generation, it has not reflected in the common portal, the
person making the deposit or the person on whose behalf the deposit has been
made, can make a representation in prescribed form through the common
portal or e-gateway through which the payment has been made.
Few Questions - - -
Whether Manual
challan are
applicable under
GST?
How many types of
Challans are prescribed
for various taxes and
payments to be paid
under the GST regime?
Validity
period of
E-challan?
Commission for
making payment
through E-Challan is
to be borne by –
How can an
unregistered person
can make payment on
the through common
portal?
Date of credit into the
treasury of the State
Government/Central
Government?
Manner of Utilisation of amount
reflected in Electronic Cash Ledger
• The amount reflected in the electronic cash ledger may be used
for making any payment towards tax, interest, penalty, fee, or any
other amount under the relevant tax head in the prescribed
manner.
• In the ledger, information is kept minor head-wise for each

major head.
• The ledger is displayed major head-wise i.e., IGST, CGST,

SGST/UTGST, and CESS.
• Each major head is divided into five minor heads - Tax, Interest,
Penalty, Fee, and Others.
Major Heads Minor Heads
CGST Tax
SGST Interest
CESS Penalty
IGST Fees
Others
Utilisation of cash available in
• The amount available in the Electronic Cash Ledger can
be utilised for payment of any liability for the
respective major and minor heads.
• Amount available under one major head (SGST/UTGST,

CGST, IGST or CESS) cannot be utilised for discharging
the liability under any other major head.
GST PMT 09
Questions
• Can cash balance available in one major head be utilised for other
major head?
• Can cash balance available in one minor head be utilised for

other minor head in the same major head?
• Can cash balance available in one minor head be utilised for

other minor head in the other major head?
Electronic Credit Ledger
• Input Tax Credit as self-assessed in monthly returns
will be reflected in the ITC Ledger.
• The credit in this ledger can be used to make

payment of TAX ONLY and not other amounts such
as interest, penalty, fees etc.
Format of Ledger
Debit Credit
 Credit amount of this  Input Tax credit as self-

ledger may be used for assessed in the return in
payment of output tax viz the form of IGST, CGST,
IGST, CGST, SGST, UTGST in SGST, UTGST
the prescribed order.
Manner of Utilisation of Credit
Filing of returns without Payment of
tax
• If return is filed without payment of taxes, the

return is not considered as a valid return.
• A valid return means a return furnished on which

self-assessed tax has been paid in full.
Common Points for
Electronic Cash & Credit Ledger
• Where a person has claimed refund of any amount from the

electronic cash or credit ledger, the said amount shall be
debited to the electronic cash or credit ledger.
• If the refund so claimed is rejected, either fully or partly, the

amount debited earlier, to the extent of rejection, shall be
credited to the electronic cash or credit ledger by the
proper officer by an order made in prescribed form.
Electronic Liability Register
• Electronic Liability Register will reflect the

total tax liability of a taxpayer for the
particular month.
Format of Liability Register
Debit Credit
 Amount payable towards  Electronic cash ledger

tax, interest, fees etc.
 Any other dues
 Amount payable towards  Electronic credit ledger

output tax
Order of discharge of tax and
other dues
Benefits of new
payment systems
benefit to the
taxpayer
and Tax Department
Interest on
delayed payment
of Tax
Section 50
Section 50
• Every person who is liable to pay tax in accordance with
the provisions of this Act or the rules made thereunder,
• but fails to pay the tax or any part thereof to the

Government within the period prescribed, shall for the
period for which the tax or any part thereof remains
unpaid,
• pay, on his own, interest at such rate, not exceeding

eighteen per cent., as may be notified by the
Government on the recommendations of the Council.
Amendment
• Provided that the interest on tax payable in respect
of supplies made during a tax period and declared in
the return for the said period furnished after the
due date in accordance with the provisions of
section 39,
• except where such return is furnished after

commencement of any proceedings under section 73
or section 74 in respect of the said period,
• shall be levied on that portion of the tax that is

paid by debiting the electronic cash ledger
1. Situation where
Interest is Payable
2. Rate of Interest
3. Period of Interest
4. Amount on which
Interest is to be Paid
a. If Return is filed
before due date
b. If Return if filed after
due date
Question
• Mr. Alok, a registered supplier of taxable goods, filed
GSTR 3B for the month of January, 2020 on 15th April,
2020.
• The prescribed due date to file the said GSTR3B was
20th February, 2020.
• The amount of net GST payable, in Cash i.e. Electronic
Cash Ledger on supplies made by him for the said month
worked out to be Rs. 36,500 which was paid on 15th April,
2020.
• Briefly explain the related provisions and compute the
amount of interest payable under the CGST Act, 2017 by
Mr. Alok.
• Ignore the effect of leap year, if applicable in this case.
Question
• M/s ABC Ltd., have filed their GSTR3B for the month of July, 2020
within the due date prescribed under Section 39 i.e. 20.08.2020.
• Post filing of the return, the registered person has noticed during
September 2020 that tax dues for the month of July, 2020 have
been short paid for Rs. 40,000.
• M/s ABC Ltd., has paid the above shortfall of Rs. 40,000, through
GSTR3B of September 2020, filed on 20.10.2020 [payment through
Cash ledger – Rs. 30,000 and Credit ledger Rs. 10,000].
• Examine the Interest payable under the CGST Act, 2017.
• What would be your answer if, GSTR3B for the month of July 2020
has been filed belatedly on 20.10.2020 and the self-assessed tax of
Rs. 40,000/- has been paid on 20.10.2020 [payment through
electronic cash ledger – Rs. 30,000 and electronic credit ledger Rs.
10,000]
• Notes:
• There exists adequate balance in Electronic

Cash & Credit ledger as on 31.07.2020 for the
above short fall
• No other supply has been made nor tax payable
for the month of July, 2020 other than Rs.
40,000/- missed out to be paid on forward
charge basis
• Ignore the effect of leap year, if applicable in
this case.
Computation of period for
calculation of interest
• The period of interest will be from the date
following the due date of payment to the actual
date of payment of tax.
Other Points
Tax wrongfully collected and paid to
Central Government or State Government
Section 19 of IGST Act, 2017
Situation 1 – CGST+SGST/UGST Paid instead of IGST
Situation 2 – IGST Paid instead of CGST+SGST/UGST

94294 61564
[email protected]
smit_shah_ca CA Smit Shah

Payment Under GST

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Payment under GST

Electronic Cash Ledger

Section 49 3 Ledgers Electronic Credit Ledger

 Credit amount of this Ledger  Any deposit made towards

 Internet Banking  NEFT/RTGS - No Limit of

• CPIN stands for Common portal Identification Number.

• On successful credit of amount in the concerned (Central/State) Government

• It is a 17-digit number that is 14-digit CPIN plus 3-digit Bank Code.

• CIN is communicated by the authorized bank to taxpayer as well as to GSTN.

• In the ledger, information is kept minor head-wise for each

• The ledger is displayed major head-wise i.e., IGST, CGST,

• Amount available under one major head (SGST/UTGST,

• Can cash balance available in one minor head be utilised for

• Can cash balance available in one minor head be utilised for

• The credit in this ledger can be used to make

 Credit amount of this  Input Tax credit as self-

• If return is filed without payment of taxes, the

• A valid return means a return furnished on which

• Where a person has claimed refund of any amount from the

• If the refund so claimed is rejected, either fully or partly, the

• Electronic Liability Register will reflect the

 Amount payable towards  Electronic cash ledger

 Amount payable towards  Electronic credit ledger

• but fails to pay the tax or any part thereof to the

• pay, on his own, interest at such rate, not exceeding

• except where such return is furnished after

• shall be levied on that portion of the tax that is

• There exists adequate balance in Electronic

Situation 1 – CGST+SGST/UGST Paid instead of IGST

Situation 2 – IGST Paid instead of CGST+SGST/UGST

smit_shah_ca CA Smit Shah

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