Part A: Concept of Electronic Tax Liability Register, Electronic Cash Ledger and Electronic Credit Ledger
Electronic Tax Liability Register
As per payment of tax sub-rule 1(1), the electronic tax liability register as provided under section 49(7) shall be maintained in Form GST PMT-1 on the common portal. All amounts like tax, interest, fine, penalty etc. payable shall be debited to the said register.
As per sub-rule (2), debit in liability register will be made for following:
- the amount payable towards tax, interest, late fee or any other amount payable as per the return filed by the said person;
- the amount of tax, interest, penalty or any other amount payable as determined by a proper officer in pursuance of any proceeding under the Act or as ascertained by the said person;
- the amount of tax and interest payable as a result of mismatch under section 42 or section 43 or section 50; or
- any amount of interest that may accrue from time to time.
Electronic Cash Ledger
The electronic cash ledger is defined in Section 2(43) of the GST Act as follows:
'(43) 'electronic cash ledger' means the electronic cash ledger referred to in sub-section (1) of section 49.'
The sub-section (1) of section 49 of the GST Act states that every deposit made by the registered person towards tax, interest, penalty, fee or any other amount shall be credited to the electronic cash ledger
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 amount as per payment rule can be deposited by any of the following modes :
- Internet Banking through authorized banks;
- Credit card or Debit card through the authorised bank;
- National Electronic Fund Transfer (NEFT) or Real Time Gross Settlement (RTGS) from any bank;
- 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-
- Government Departments or any other deposit to be made by persons as may be notified by the Board/Commissioner (SGST) in this behalf;
- Proper officer or any other officer authorised to recover outstanding dues from any person, whether registered or not, including recovery made through attachment or sale of movable or immovable properties;
- 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 Credit Ledger
The electronic credit ledger is defined in Section 2(46) of the GST Act as follows:
'(46) 'electronic credit ledger' means the electronic credit ledger referred to in sub section (2) of section 49.'
The sub-section (2) of section 49 of the GST Act states that input tax credit which is self-assessed in the return of a registered person shall be credited to his electronic credit ledger
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.
Payment of liabilities
Thus amount which is shown as liability in electronic tax liability register on debit side will be paid by the registered person either by debiting the electronic cash ledger or electronic credit ledger and electronic tax liability register will be credit accordingly.
Part B : Utilization of Credit
The provision relating to utilization of credit is made under section 49 (4) & (5). The sub-section (4) provides that the amount available in the credit ledger may be used for making any payment towards tax subject to terms and conditions within such time as may be prescribed. Sub-section (5) provides the following manner of utilizing the credit for payment of tax (a) integrated tax shall first be utilised towards payment of integrated tax and the amount remaining, if any, may be utilised towards
(a) integrated tax shall first be utilised towards payment of integrated tax and the amount remaining, if any, may be utilised towards
(b) the central tax shall first be utilised towards payment of central tax and the amount remaining, if any, may be utilised towards the payment of integrated tax;
c) the State tax shall first be utilised towards payment of State tax and the amount remaining, if any, may be utilised towards payment of integrated tax;
(d) the Union territory tax shall first be utilised towards payment of Union territory tax and the amount remaining, if any, may be utilised towards payment of integrated tax;
(e) the central tax shall not be utilised towards payment of State tax or Union territory tax; and
(f) the State tax or Union territory tax shall not be utilised towards payment of central tax;
It is evident from this that the credit of CGST cannot be used for payment of SGST or union territory tax and vice versa. However, balance of CGST and SGST or union territory tax can be used for the purpose of payment of IGST.