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Payment thorugh cash ledger only ?

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nukanaboina maruthi

150 Points Posted on 04 June 2021

sir. demand was communicated by DRC 1 U/s 74 and iam ready to pay by credit ledger upto tax portion. but dept insist cash payment. please help sec and rule peovision under GST. thanking you

Replies (5)

Quick Summary

This discussion clarifies that while GST liabilities declared in returns can generally be paid using the electronic credit ledger, specific demands raised by the department, such as under Section 74, often require payment through the electronic cash ledger. This is supported by Section 49(7) read with Rule 85(3) of the CGST Rules, 2017, which outlines the procedures for debiting these ledgers.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 04 June 2021

You should make partly payment in cash and in ledger balance

Deepak Kumar

791 Points Posted on 04 June 2021

I think we are filed GSTR-9 this time you have any mistake then you Rectify ( for Example- claim excess ITC or short payment of liablity )that case you utilised the credi ledger amount but in your case is Demand then you can pay cash ledger only. its my openion But you can wait other people answer

nukanaboina maruthi

150 Points Posted on 04 June 2021

Section or rule provision please, or any case laws please

Deepak Kumar

791 Points Posted on 04 June 2021

In terms of section 49(7) read with Rule 85(3) of CGST Rules, 2017, subject to the provision of section 49, payment of every liability by a registered person as per his return shall be made by debiting the electronic credit ledger maintained as per Rule 86 or electronic cash ledger maintained as per Rule 87 and the electronic liability register shall be credited accordingly.