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.
What is Electronic Cash Ledger?
Electronic Cash Ledger provides a summary of all your GST payments. It reflects the cash available to pay off your GST tax liability. Thus, any deposit made on the GST portal is credited to your Electronic Cash Ledger. This means that the amount available in the Electronic Cash Ledger is used for making payments. These payments are towards tax, interest, GST penalty fees and any other amount payable.
Form GST PMT-05
You need to maintain the electronic cash ledger in Form GST PMT – 05 on the common portal. The information in FORM GST PMT – 05 is divided into major and minor heads. Major heads include IGST, CGST, SGST/UTGST, and CESS. And the minor heads include tax, interest, penalty, fees, and others. These minor heads form a part of the major heads.
Following are the components of Form GST PMT-05:
- Serial Number
- Date of Deposit
- Time of Deposit
- Reporting Date by Bank (Reference Number)
- Reference Number
- Tax period, if applicable
- Transaction Type (Debit/Credit)
- Amount Debited/Credited
- Integrated Tax
- Central Tax (CGST)
- State Tax
- Total of above
- Integrated Tax
- Central Tax
- State Tax
- Total of above
Form GST PMT-05
1. Maintain Electronic Cash Ledger in Form GST PMT-05
You need to maintain the electronic cash ledger in Form GST PMT – 05 on the common portal. Such a ledger reflects:
amounts credited against deposits and
amounts debited for payment of tax, penalty, interest, fees or any other amount
2. Generate Challan in Form GST PMT-06
You need to generate Challan in Form GST PMT – 06 on the common portal in order to begin the GST payment process. Then, enter details regarding the amount to be deposited towards tax, interest, penalty, fees or any other amount. This is done once the Challan is generated. Such a challan is valid for 15 days once it is generated.
3. Use One of the Prescribed Modes For Deposit
You can make a deposit on the common portal using any of the following modes:
- internet banking through authorized banks
- credit or debit card through an authorized bank
- National Electronic Fund Transfer (NEFT)
- Real Time Gross Settlement (RTGS)
- Over the Counter Deposit through authorized banks for a payment up to Rs. 10,00 per challan for every tax period. Such a deposit can be made by cash, cheque or demand draft. However, the limitation for deposit does not apply to the deposit made by any of the following entities:
- Government departments or any person notified by the commissioner in this regard
- Proper officer having the authority to recover outstanding payments from registered or unregistered persons. Besides dues, the officer also has the authority to recover proceeds from selling immovable or movable properties.
- Proper officer having the authority to collect amounts on account of investigation or enforcement activity or ad hoc deposit. Such amounts can be collected by the way of cash, cheque or demand draft.
4. Payment By Unregistered Person
The GST portal allows even the unregistered persons to make payments. These individuals need to generate a temporary identification number on the portal.
5. Payment Through NEFT/RTGS
One of the ways through which you can pay GST is through NEFT/RTGS from any bank. In this case, the common portal generates a mandate form together with challan. Both the form and challan are submitted to the bank through which payment is to be made. This mandate form is valid for 15 days from the date the challan is generated.
6. Bank Collects CIN
The collecting bank generates a Challan Identification Number (CIN) after you make GST payment. This number is indicated on the Challan. Now, the bank generates CIN number only when the amount is credited to the concerned government account. Furthermore, banks need authorization to maintain the government account.
7. Amounts Gets Credited To The Electronic Cash Ledger
Now, your cash ledger shows a credit balance once the CIN is generated. Thus, CIN is mandatory to allow the portal to credit your electronic cash ledger. Finally, the common portal generates receipt as a result of the balance credited to your ledger.
8. In Case CIN Is Not Generated Or Not Updated
There are cases when bank debits your account on making GST deposit. But it fails to generate CIN in return. Or, the bank generates CIN but the number is not updated on the common portal. In such cases, you can present these concerns to the concerned bank electronically in form GST PMT – 07. You can present this form to the bank either via common portal. Or you can present it through electronic gateway via which payment was initiated.
9. Credit of Electronic Cash Ledger In Case of TDS Or TCS
There are taxpayers who pay TDS (under section 51) or collect TCS (under section 52) under GST. Further, these taxpayers claim the amounts deducted or collected in Form GSTR – 2. Now in such cases, the electronic cash ledgers of taxpayers paying TDS or collecting TDS gets credited.
10. Debit of Electronic Cash Ledger
The electronic cash ledger is debited if a taxable person has claimed any refund from the ledger itself.
11. Rejection of Refund
There are situations when a GST refund claimed gets rejected, either fully or partly. In such a cases, the amount debited under rule 10 is credited to the electronic cash ledger of the said person.Such amount is restricted to the portion of the refund claimed rejected. Furthermore, the said amount is credited by a proper officer through an order in form GST PMT – 03.
12. Discrepancy In Electronic Cash Ledger
There are cases when there is any discrepancy in the electronic cash ledger. In these scenarios, the registered person can communicates the discrepancy to the concerned officer. Such a communication is made through the common portal in form GST PMT – 04.