GST Annual return query

This query is : Resolved

CA Parul Saxena (Querist)
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12 February 2021 In Apr 2019 we have paid penalty of Rs.30000 for E way Bill non compliance. The problem is the amount is still showing in Electronic Cash Ledger. The vehicle was released upon payment of penalty amount at that time..

What to do now? Please clarify..

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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07 July 2024 It appears that while the penalty amount for E-way Bill non-compliance was paid, it was not properly offset in the GST portal, and hence, it is still showing in the Electronic Cash Ledger. To resolve this issue, you need to take the following steps:

### Steps to Adjust Penalty Amount in Electronic Cash Ledger:

1. **Verify the Payment Details:**
- Check your Electronic Cash Ledger to confirm that the penalty amount of Rs. 30,000 is still available as a balance.

2. **Locate the Challan Details:**
- Ensure you have the challan details with which the penalty was paid. This includes the Challan Reference Number (CRN), the date of payment, and the amount.

3. **Contact the Jurisdictional Officer:**
- Visit or contact your jurisdictional GST office. Provide them with the details of the penalty payment and the proof of payment (challan details).

4. **Filing Form DRC-03:**
- You can use Form DRC-03 to voluntarily pay tax, interest, penalty, or any other amount. In this case, since the penalty has already been paid but not adjusted, you need to declare this in Form DRC-03.
- Log in to the GST portal.
- Go to Services > User Services > My Applications.
- Select “Application for intimation of voluntary payment” in the drop-down and click on “New Application.”
- Fill in the details in Form DRC-03. Select the correct section under which the penalty was paid.
- Declare the payment amount and upload the necessary documents.

**Apply the Balance to Offset Liability:**
- If the jurisdictional officer confirms that the penalty was paid but not properly offset, they might adjust it against your outstanding liability.
- Alternatively, you can manually adjust the balance in your Electronic Cash Ledger against any tax liability (current or future).

**Keep Records:**
- Keep copies of all communications, challans, and acknowledgments for your records. This documentation will be useful if any queries arise in the future.

### Summary:
To resolve the issue of the penalty amount still showing in the Electronic Cash Ledger, verify the payment details, contact your jurisdictional officer, file Form DRC-03 if necessary, and adjust the balance to offset any outstanding liability. Keeping thorough records of all transactions and communications will help in case of any future queries.

If you encounter any difficulties or require further assistance, consider consulting with a GST practitioner or a tax professional to ensure proper resolution.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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