Every registered taxpayer has access to electronic ledgers in order to make tax payment under GST. These ledgers include (i) Electronic Cash Ledger (ii) Electronic Credit Ledger and (iii) Electronic Liability Ledger.
So, the electronic cash ledger reflects the cash available to settle the tax liability online. Whereas, the electronic credit ledger reflects the amount of input tax credit available to settle the output tax liability of the taxpayer. Finally, electronic liability ledger showcases the amount of tax payable by the registered taxpayer.
This ledger contains the details of GST liability. It showcases the way in which the GST liability has been set off, that is, through cash or credit. All the amounts payable by a registered taxable person shall be debited to the electronic liability register. So let’s understand what is an electronic liability register and what is the purpose of such a register.
What is Electronic Liability Register?
All the liabilities of a taxable person under GST are maintained in electronic liability register. This register showcases the amount of tax due, interest, penalty, late fee or any other amount on the common portal.
Hence, the electronic liability register is debited with all the amounts payable by registered taxable person.
Form GST PMT – 01
Each taxable person liable to pay tax, interest, penalty, late fee or any other amount maintains an electronic liability register on the common portal. This register is maintained in form GST PMT – 01. Furthermore, this register is maintained in two parts:
- Part I maintains the return related liabilities. All the liabilities that accrue due to return and payments made against such returns are recorded in this part of the register. This part of the register also covers the liabilities arising on account of opting for composition scheme (Form GST CMP-03) and cancellation of registration (Form GST REG 16). The details of all such liabilities are entered in the liability register in the tax period for which the return has been filed.
- Whereas, Part II of the electronic tax liability register contains complete details of liabilities other than the return related liabilities. These liabilities include:
- Liabilities on account of reduction or enhancement in the amount of tax payable. Where such a reduction or enhancement is a result of decision of appeal, rectification, review, revision etc.
- Refund of a pre-deposit claimed by a registered taxpayer for a particular demand. Provided the taxpayer is allowed to make an appeal for such a refund.
- Payments made on account of show cause notice received from the authorities. It also includes other payments made voluntarily by the registered taxpayers.
- Reduction in amount of penalty on account of payments made against show cause notice or within the specified time period. These payments are shown automatically in electronic liability ledger
GST Payment Rules for Electronic Liability Ledger
Following are the rules pertaining to the electronic tax liability ledger of a registered taxpayer.
Payments Recorded in Electronic Liability Register
- The amounts that a registered taxable person has to pay towards tax, interest, late fee or any other amount payable as per the return.
- Amounts determined by a proper officer as a result of proceedings under the act. These amounts include the amount payable towards tax, interest, late fee or any other amount.
- The amount of tax and interest payable by a registered taxable person on account of mismatch of input tax credit.
- Any amount of interest that accrues from time to time
- Amount deducted by government authorities from the payment made to the supplier of taxable goods or services. This amount is deducted where the total value of supply in a given contract exceeds Rs. 2,50,000.
- The amounts collected by an electronic commerce operator on the net value of sales made through its electronic platform. Provided the supplies for such sales are provided by other suppliers. Furthermore, the consideration for sales of such supplies is to be collected by the operator.
- Amount payable on reverse charge basis
- The amount payable under composition levy scheme.
- Amounts payable towards interest, penalty, fees
- Any other amount payable under GST act
Debit and Credit of Electronic Ledgers
- Electronic cash ledger and credit ledger is debited when a registered person makes payment of the tax liability as per his return. However, the electronic tax liability register is credited on making such a payment.
- The electronic tax liability register of a taxable person is debited if the amounts are due to be paid on account of demand by government authorities. However, the registered person gets a relief if he makes an appeal to the appellate authority or appellate tribunal and the appeal is accepted. Thus, the electronic tax liability register of the registered person gets reduced to the extent of relief given.
- Amount of penalty imposed is reduced partly or fully if the taxable person makes payment of tax, interest and penalty within the specified time period. Thus, the electronic tax liability register of the taxable person is credited to the extent such a penalty is reduced.
- In case there is any discrepancy in the electronic credit ledger, the registered person communicates it to the concerned officer. This communication is made through the common portal in form GST PMT – 04.