PAYMENT OF TAX UNDER GST
In this article we will discuss how the liabilities of a person will be adjusted by using different type of register/Ledgers. For the payment of taxes under GST following ledger or register will be maintained –
1) Electronic Cash Ledger
2) Electronic Credit Ledger
3) Electronic Liability Register
Electronic Cash Ledger
As per Sec-49(1) of CGST Act 2017 - Every deposit shall be credited to Electronic Cash Ledger of such person, who made towards tax, interest, penalty, fee or any other amount by internet banking or by using credit or debit cards or NEFT or RTGS or by such other mode.
Sec-49(3) of CGST Act 2017 - Amount available in Electronic Cash Ledger may be used for making any payment towards tax, interest, penalty, fees or any other amount payable under the provisions of this Act or the rules.
As per Revised Draft Payment rules 2017 -Electronic Cash Ledger shall be maintained in FORM GST PMT-05 for each person, liable to pay tax, interest, penalty, late fee or any other amount, on Common Portal for crediting the amount deposited and debiting the payment there from towards tax, interest, penalty, fee or any other amount.
A Challan in FORM GST PMT-06 will be generated by any person, or a person on his behalf, the details of the amount to be deposited by him towards tax, interest, penalty, fees or any other amount on Common portal and Challan will be valid for 15 days.
Deposit shall be made through any of the following modes -
(i) Internet Banking through authorized banks;
(ii) Credit card or Debit card through the authorized bank;
(iii) NEFT or RTGS from any bank;
(iv) Over the Counter payment (OTC) through authorized banks for deposits up to Rs.10,000/- per Challan per tax period, by cash, cheque or demand draft
A temporary identification number will be generated through the Common Portal if any payment required to be made by a person who is not registered under the Act.
Mandate form shall be generated along with the Challan on the Common Portal where the payment is made by way of NEFT or RTGS mode from any bank and the same shall be submitted to the bank from where the payment is to be made and it will be valid for 15 days from the date of generation of Challan.
A Challan Identification Number (CIN) will be generated by the collecting Bank on successful credit of the amount to the concerned government account maintained in the authorized bank and same will be indicated in the Challan.
Electronic cash ledger of the person on whose behalf the deposit has been made shall be credited with such amount after receipt of CIN from the authorized Bank and a receipt will be available at Common Portal .
Where no Challan Identification Number (CIN) is generated or generated but not communicated to the Common Portal then concerned person may represent electronically in FORM GST PMT-07 through Common Portal to the Bank or electronic gateway through which the deposit was initiated.
Electronic cash ledger will be credited with the amount deducted under section 51(TDS) or collected under section 52(TCS) and claimed in FORM GSTR-02 by the registered taxable person from whom the said amount was deducted.
Electronic cash ledger shall be debited with the amount as a person has claimed as refund.
Proper officer will make an order in FORM GST PMT-03 and electronic cash ledger will be credited with the rejected amount of refund .
Electronic Credit Ledger
Sec- 49(2) of CGST Act 2017 - Input tax credit as self-assessed in the return of a registered person shall be credited to his Electronic Credit Ledger.
As per Sec- 49(4) of CGST Act 2017- Output tax under CGST Act or under Integrated Goods and Services Tax Act (IGST) may be paid by registered person by using Amount available in his Electronic Credit Ledger.
As per Sec- 49(5) of CGST Act 2017 - Amount of input tax credit available in Electronic Credit Ledger of the registered person on account of will be utilized as under-
|Tax Category||Tax Utilization|
|Union Territory Tax||
Union Territory Tax
1. Central Tax cannot be utilized for payment of State Tax
2. State Tax cannot be utilized for payment of Central Tax
3. Union Territory Tax cannot be utilized for payment of Central Tax
According to Revised Draft Payment Rules 2017 -
In FORM GST PMT-02 an Electronic Credit Ledger shall be maintained for each registered person eligible for input tax credit under the Act on Common Portal and every claim of input tax credit under the Act shall be credited to the said Ledger
Electronic Credit Ledger shall be debited to extent of discharge of any liability in accordance with section 49.
Amount of claim shall be debited in Electronic Credit Ledger, if a registered person has claimed refund of any unutilized amount from electronic credit ledger
Proper officer will re-credit the Electronic Credit Ledger, by an order made in FORM GST PMT-03 as the amount of refund rejected .
No entry shall be made directly in Electronic Credit Ledger under any circumstance.
In FORM GST PMT-04, a registered person shall communicate to officer through the Common Portal about any discrepancy noticed in his Electronic Credit Ledger .
Electronic Liability Register
As per Sec-49(7) of CGST Act 2017 - All liabilities of a taxable person under this Act shall be recorded and maintained in an Electronic Liability Register .
According to Revised Draft Payment rules 2017 - In FORM GST PMT-01, an Electronic Tax Liability register shall be maintained for each person liable to pay tax, interest, penalty, late fee or any other amount on the Common Portal and all amounts payable by him shall be debited in the same.
Electronic Tax Liability register shall be credited and Electronic credit ledger or electronic cash ledger will be debited if a registered person pays any amount of his liability as per return.
Electronic Cash Ledger will be debited and Electronic Tax Liability Register shall be credited with the amount deducted under section 51(TDS), or amount collected under section 52(TCS), or amount payable under section 9(3)or(4) (Reverse Charge Basis), or amount payable under section 10 ( Composition Levy), of CGST Act or section 5(3)or(4) (Reverse Charge Basis) of IGST Act or section 7(3)or(4)(Reverse Charge Basis) of UTGST Act any amount payable towards interest, penalty, fee or any other amount under the Act or IGST Act
Electronic Tax Liability Register shall be credited to the extent of relief given by appellate authority or Appellate Tribunal or court with the amount of demand reduced.
Discharge of Tax Liabilities
Sec-49(8) of CGST Act 2017 -Every taxable person shall discharge his tax and other dues under this Act or the rules made thereunder in the following order, namely:
(a) self-assessed tax, and other dues related to returns of previous tax periods;
(b) self-assessed tax, and other dues related to the return of the current tax period;
(c) any other amount payable under this Act or the rules made thereunder including the demand determined under section 73 or section 74
Interest on late payment of tax
Sec-50 of CGST Act 2017 - Any person 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 18 per cent., as may be notified by Government on the recommendations of the Council.
But he will pay interest at such rate not exceeding 24 per cent as may be notified by Government on the recommendations of the Council if he makes an undue or excess claim of input tax credit or undue or excess reduction in output tax liability
Interest shall be calculated from the day succeeding the day on which such tax was due to be paid.
List of Form for payment is as below:-
|1||FORM GST PMT-01||Electronic Tax Liability register|
|2||FORM GST PMT-02||Electronic Credit Ledger|
|3||FORM GST PMT-03||Order by Proper officer for re-credit of amount of rejected refund in Electronic Credit Ledger|
|4||FORM GST PMT-04||Communication by registered person to proper officer of any discrepancy noticed in his Electronic Credit Ledger|
|5||FORM GST PMT-05||Electronic Cash Ledger|
|6||FORM GST PMT-06||Challan for the amount to be Deposited by Registered person towards Tax, Interest, penalty, fee & other amount||Validity of challan will be 15 days|
|7||FORM GST PMT-07||Deposit detail in case of CIN not generated or not communicated to common portal|