What is Electronic Cash Ledger in GST?
e-Ledgers is considered to be a kind of e-wallet. Electronic Cash Ledger records any kind of GST payment that is made by bank transfer or in cash.
Any of the remaining tax burden should be paid after the deduction of Input Tax Credit (ITC). This should be paid using the balance in the electronic cash ledger.
How e‑Ledgers under GST Work?
All valid Input Tax Credit claimed by a registered dealer in GST returns (GSTR-2 or GSTR-3B) is recorded in the Electronic Cash Ledger. Credit present in the Electronic Cash Ledger can only be used to pay taxes. This means that the Electronic Credit Ledger balance cannot be used to pay late fees, penalties, or pay interest. These penalties and interests can be paid only by cash payments.
Specific limitations and order for using ITC (IGST, CGST, SGST) to pay GST liability:
- The CGST credit cannot be used to pay the SGST. It is possible to set it off in the following order: CGST, IGST.
- The IGST credit can be used to cover any tax liability in this order – SGST/UTGST, CGST, or IGST.
- Credit for SGST/UTGST cannot be used to pay CGST. SGST can be deducted in the order SGST/UTGST, IGST.
How to Deposit Money in e-Ledgers Under GST?
The steps mentioned below explain how one can deposit money in e-ledgers under GST:
Step 1: The registered person will pay the appropriate amount using any of the preferred modes (credit cards, debit cards, NEFT/RTGS, etc.).
Step 2: The amount will be credited to the applicable government account kept in the authorized bank once the payment is made by the registered person.
Step 3: The collecting bank will issue a Challan Identification Number (CIN).
Step 4: Finally, once the CIN is received, the amount will be credited to the Electronic Cash Ledger.
How to Download e-Ledgers from GST Portal?
Follow the steps mentioned below to download e-ledgers from GST portal:
Step 1: Open the official website of GST portal.
Step 2: Click 'Login,' then enter your 'Username,' 'Password,' and 'CAPTCHA Characters.'
Step 3: Find the ‘Electronic Cash Ledger’ from the ‘Services’ section.
Step 4: Choose a period from the drop-down menu and press the 'GO' button.
FAQs on E-Ledgers under GST
- Where does the Electronic Cash Ledger reside?
The GST Portal (https://www.gst.gov.in/) keeps the electronic cash ledger.
- Is it possible for someone else to examine my Electronic Cash Ledger?
No, only the taxpayers, their authorized signatories, and the GST Practitioner have access to the Electronic Cash Ledger. It is also accessible to their Jurisdictional Officials (JO).
- How can a taxpayer get access to their Electronic Cash Ledger?
A taxpayer can access their Electronic Cash Ledger by visiting the GST Portal at https://www.gst.gov.in/.
- What is the longest time frame for which the Electronic Cash Ledger can be viewed?
The Electronic Cash Ledger can be viewed for a maximum of 12 months.
- Will the money accidentally put in the Electronic Cash Ledger be retained?
Yes, any extra funds placed by mistake in the Electronic Cash Ledger will stay there and can be used in the following months to release liabilities. Subsequently, the extra money that is placed in the Electronic Cash Ledger can be refunded by selecting the appropriate option while filing the periodic return or through a refund application.
- Is it permitted to transfer funds between major headings in order to discharge liabilities?
Amounts that are available under one major head (CGST, SGST, IGST, or CESS) are ineligible to be used to satisfy any liabilities under any other major head.
- How may the money in the Electronic Cash Ledger be used?
The Electronic Cash Ledger balance can be used to pay liabilities under any major and minor headings.
- Can the amount in the cash ledger be considered payment for any liability?
No, the amount in the cash ledger cannot be assigned to any liability unless the taxpayer makes a debit entry from the cash ledger for that liability.
- How does a taxpayer access the Electronic Cash Ledger's available balance?
A taxpayer can access the GST Portal and go through the home page of electronic cash ledger following the steps below: Electronic cash Ledger is a service. The balance is displayed in the upper right corner under the heading "Cash balance as of Date:"
- Is it essential to request a refund of the excess amount in the Electronic Cash Ledger?
No, the excess amount will stay in the cash ledger. This extra amount can also be used in the future.
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