Under the Goods and Services Tax (GST) framework, taxpayers can manage their electronic ledgers directly through the GST portal. Any transaction or action related to these ledgers is reflected in real time, and much of the information is auto-populated based on data from previously filed returns. This article explains the different types of electronic ledgers under GST and their respective purposes in ensuring smooth and efficient tax administration. Auriga Accounting pvt. ltd. experts provide end-to-end support for all GST requirements, from registration to return filing.
E-Ledgers under GST
E-Ledgers under the Goods and Services Tax (GST) function like an electronic passbook and are available to all registered taxpayers through the GST portal. The GST framework includes multiple electronic ledgers that help track payments, credits, and liabilities in a transparent and systematic manner. One of the key ledgers among these is the Electronic Cash Ledger.
Electronic Cash Ledger
The Electronic Cash Ledger records all payments made by a taxpayer through online modes such as internet banking, debit cards, credit cards, or over-the-counter (OTC) payments. Any payment exceeding ₹10,000 must be made through a banking channel only.
While making a payment, taxpayers must specify the appropriate tax head under which the amount is to be credited. The major heads include Central GST (CGST), State GST (SGST), and Integrated GST (IGST), while minor heads cover tax, interest, penalty, fees, and other charges.
Electronic Input Tax Credit (ITC) Ledger
The Electronic ITC Ledger plays a vital role in tracking taxes paid on inputs. This ledger is auto-updated based on details furnished in GSTR-1 and GSTR-2. The credit available in this ledger can be used only for the payment of tax and not for interest, penalties, or late fees.
The utilization of ITC must follow a prescribed order:
IGST Credit: First adjusted against IGST liability, and any remaining credit can be used for CGST, SGST, or UTGST, in that order.
CGST Credit: Used first for CGST liability, with any excess applied to IGST liability. It cannot be used to pay SGST.
SGST/UTGST Credit: Applied first to SGST or UTGST liabilities respectively, and any remaining credit can be used for IGST. It cannot be used for CGST payments.
Electronic Liability Ledger
The Electronic Liability Ledger reflects the total liabilities of a taxpayer under GST. This includes tax payable as per returns filed, along with interest, penalties, late fees, and other demands. It also records payments made to discharge these liabilities using balances from the Electronic Cash Ledger and the Electronic ITC Ledger, ensuring complete transparency of obligations and settlements.
Different Types of GST Payment Forms
The GST system provides several payment-related forms, each serving a specific purpose in managing tax payments, credits, and discrepancies:
| S. No | GST Payment Form | Description | Purpose |
|---|---|---|---|
| 1 | GST PMT-01 | Electronic Tax Liability Register | Records and debits tax, interest, penalty, late fee, or other amounts payable |
| 2 | GST PMT-02 | Electronic Credit Ledger | Maintains records of Input Tax Credit (ITC) |
| 3 | GST PMT-03 | Refund to be Re-credited | Used to re-credit rejected or unclaimed ITC as ordered by an officer |
| 4 | GST PMT-04 | Discrepancy in Electronic Credit Ledger | Used to report discrepancies in the Electronic Credit Ledger |
| 5 | GST PMT-05 | Electronic Cash Ledger | Records cash payments for tax, interest, penalty, late fee, and other dues |
| 6 | GST PMT-06 | Challan for Deposit of Tax, Interest, Penalty, etc. | Used to generate and pay challans |
| 7 | GST PMT-07 | Application for Payment Discrepancy | Filed when an amount is debited but the Challan Identification Number (CIN) is not generated or not reported within 24 hours |
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