It’s quite convenient to pay taxes under the GST regime. This is because you can file returns and pay taxes online through GST portal. All you need to do is access your electronic ledgers to pay GST online.
Now, there are three types of electronic ledgers that you can access. These include (i) Electronic Liability Ledger; (ii) Electronic Cash Ledger and (iii) Electronic Credit Ledger.
So, the electronic liability ledger reflects the amount of tax that you have to pay to the government. The electronic cash ledger displays the amount of cash that you have in order to pay off GST liability. Likewise, the electronic credit ledger reflects the amount of input tax credit that you can avail.
Thus, these ledgers are quite handy. This is because you can see the information about GST tax liabilities and input credits at one place. Furthermore, these ledgers are updated once you update your GSTR -3B.
So, we have discussed electronic credit ledger and liability ledger in separate articles. However, this article just talks about the electronic cash ledger.