Pre-deposit made through E-credit ledger is valid under GST

Last updated: 31 August 2023

Court :
Orrisa High Court

Brief :
The Hon'ble Orrisa High Court in M/s. Kiran Motors v. Addl. Commissioner of CT & GST [W.P (C) No.22817 of 2023 of August 10, 2023] set aside the appeal rejection order passed by the 1st Appellate Authority and held that a pre-deposit under GST can be made through electronic credit Ledger ("ECL").

Citation :
W.P (C) No.22817 of 2023 of August 10, 2023

The Hon'ble Orrisa High Court in M/s. Kiran Motors v. Addl. Commissioner of CT & GST [W.P (C) No.22817 of 2023 of August 10, 2023] set aside the appeal rejection order passed by the 1st Appellate Authority and held that a pre-deposit under GST can be made through electronic credit Ledger ("ECL").

Facts

M/s. Kiran Motors ("the Petitioner") field first appeal before the 1st Appellate Authority who vide order dated March 31, 2023 ("Impugned Order") rejected the appeal as the pre-deposit of 10% of admitted tax amount was debited through the ECL.
Aggrieved by the Impugned Order the Petitioner filed a writ before the Hon'ble Orrisa High Court and contended that the CBIC vide circular dated July 06, 2022 clarified that payment of pre-deposit can be made by using the ECL.

Issue

Whether pre-deposit under GST can be done through E-Credit Ledger Instead of the ECL?

Held

The Hon'ble Orrisa High Court W.P (C) No.22817 of 2023 held as under:

Noted that, CBIC vide circular dated July 06, 2022 clarified that payment of pre-deposit can be made by using the ECL.
Opined that, the Petitioner has already made the pre-deposit using the ECL, that will now be accepted by the Revenue Department.
Set aside the Impugned Order, and listed the matter before the 1st Appellate Authority on September 11, 2023.