What is Electronic Cash Ledger in GST?

June 20, 20197 min read

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.

Try QuickBooks Invoicing & Accounting Software – 30 Days Free Trial.

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
Description
Transaction Type (Debit/Credit)
Amount Debited/Credited
Integrated Tax
Central Tax (CGST)
State Tax
Cess
Total of above
Integrated Tax
Central Tax
State Tax
Cess
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.

You May Also Read:

Types of GST Invoices

Try Invoicing Software – 3O Days(Trial)

Generate GST Invoice Format in Word & Excel

Export Invoice Under GST

Partnership Firm Registration

All Topics

- - Nearly 8 million customers: Based on number of global QuickBooks subscribers as of July 2021.
  - QuickBooks reserves the right to change pricing, features, support and service at any time. Prices are in AUD and include GST. See our Terms of Service for further information.
  - Pricing: All prices are in AUD.
  - ProAdvisor Program: Please find the terms of our ProAdvisor program here.
  - Discount: For new QuickBooks customers, receive a 30% discount off the current monthly price for QuickBooks Self-Employed, QuickBooks Online Simple Start, QuickBooks Online Essentials or QuickBooks Online Plus for the first 3 months of service, starting from date of enrolment. From month 4 from the date of enrolment, the price will change to the then current monthly price. See current prices here. QuickBooks Payroll prices are not eligible for this discount. For further details about QuickBooks Payroll prices see here. Your account will automatically be charged on a monthly basis until you cancel. You may cancel at any time. There is no limit on the number of subscriptions ordered under this offer. This offer cannot be combined with any other QuickBooks Online promotion or offers.
  - Trial: First thirty (30) days of subscription to QuickBooks Online, QuickBooks Self-Employed and QuickBooks Payroll (including QuickBooks Advanced Payroll), starting from the date of enrolment, is free. During the free trial, you may pay any number of employees using QuickBooks Payroll free of charge. To continue using QuickBooks after your 30-day trial, you'll be asked to present a valid credit card for authorisation and you'll be charged monthly at the then-current fee for the service(s) you've selected.
  - QuickBooks Payroll powered by KeyPay: Payroll services are offered by a third-party, Webscale Pty Ltd, the makers of KeyPay. QuickBooks Payroll is only accessible via QuickBooks Online subscriptions. You will be charged $5.00 (incl. GST) per month for each ‘active employee’ paid using QuickBooks Payroll. An ‘active employee’ is one who has been paid at least once in the billing month. For Advanced Payroll, there is an additional monthly subscription fee of $10 (incl GST). Pricing, terms and conditions, including service options, are subject to change.
  * KeyPay was voted the leading payroll solution for SMBs <50 employees (Australian Payroll Association 2021 Payroll Benchmarking Study)
  - Customer support: Call or chat to an expert for QuickBooks Online Accountant, QuickBooks Simple Start, Essential and Plus, or use in-product QB Assistant and chat for QuickBooks Self-Employed. You'll also find useful resources in the QuickBooks Community.
  - Devices: QuickBooks Online, QuickBooks Self-Employed and QuickBooks Payroll require a computer with Internet Explorer 10, Firefox, Chrome, or Safari 6 and an Internet connection (a high-speed connection is recommended). The QuickBooks Online mobile app works with iPhone, iPad, and Android phones and tablets. QuickBooks Online and QuickBooks Payroll are accessible on mobile browsers on iOS, Android, and Blackberry mobile devices. Devices sold separately; data plan required. QuickBooks Payroll cannot be used on the mobile apps. Not all features are available on the mobile apps and mobile browser. QuickBooks Online mobile access is included with your QuickBooks Online subscription at no additional cost. Data access is subject to cellular/internet provider network availability and occasional downtime due to system and server maintenance and events beyond your control. Product registration required.
  - Cloud storage: Data access is subject to Internet or cellular provider network availability and occasional downtime due to events beyond our control.
  - Get paid faster: Based on customer data for invoices paid online versus offline from Jan 2016- Dec 2016. Optional fee-based service. PayPal is an optional fee-based service. The PayPal service is provided by PayPal Australia Pty Limited (ABN 93 111 195 389) which holds Australian Financial Services Licence number 304962. Any information provided is general only and does not take into account your objectives, financial situation or needs. Please read and consider the Combined Financial Services Guide and Product Disclosure Statement at paypal.com.au before acquiring or using the service.
  - Tax deductions: Tax deductions not guaranteed due to being subject to user data entry errors. Mileage calculation provided by the Australia Taxation Office - 72 cents per kilometre from 1 July 2020 for the 2020–21 income year. To a maximum of 5,000 business kilometres per car (Deductions are only applicable to cars)
  - CSIA awards: Awarded by Customer Service Institute of Australia in Australian Service Excellence Awards: Winner Service Excellence in a Small Contact Centre 2017, Customer Service Professional of the Year 2018, Service Champion for Service Excellence (in a Small Contact Centre) 2018, Service Champion for Customer Service Project of the Year - Service Innovation 2018.
  - 160.000 Australian small businesses: Based on the number of QuickBooks Online users in Australia as of August 2018.
  - Run business more easily: Based on a survey of small businesses using QuickBooks Online conducted in September 2018.
  - Multiple accounts: These terms apply to QuickBooks AU customers only. Multiple account discount offer is valid only if you are signing up for more than one QuickBooks Online subscription with each order. View terms and conditions for multiple accounts pricing here . To inquire further about the multiple account offer, please call 1800 917 771.
  - Reviews: GetApp, Capterra, Google Play Store, Apple App Store reviews last updated on 10/08/21.
  - Cost per day claim: Based on a QuickBooks Simple Start Plan at its regular retail price of $22 per month and a 31 day month.
  - Our Terms of Service apply to all QuickBooks Online subscriptions. Please review them carefully.