Guide on Electronic Cash, Credit and Liability Ledgers

This document covers

1. Electronic Cash Ledger
2. Electronic Credit Ledger
3. Electronic Liability Ledger

The taxpayer needs to settle the GST liabilities through above ledgers.

1. Electronic Cash Ledger

• Electronic Cash Ledger contains a summary of all GST payments made by taxpayers. It is an account of taxpayers maintained by GST system.
• Electronic Cash Ledger contains the following 4 major heads
  
  • IGST
  • CGST
  • SGST/UTGST
  • Cess
• Above 4 major heads will have below 5 minor heads each
  
  • Tax
  • Interest
  • Penalty
  • Fee
  • Others
• The taxpayer can deposit the amount in Electronic Cash Ledger through Internet banking, UPI, IMPS, credit card, debit card, NEFT, RTGS and over the counter payment up to Rs 10000
• Manual or physical challans are not allowed under GST. The taxpayers are required to generate challans online in GST portal.
• Date of credit into the Government account will be treated as successful GST payment. Date of Deposit into electronic cash ledger will not be treated as GST payment.
• The taxpayer needs to login to GST portal and generates the challan. CPIN(Common portal identification number) of 14 digits will be created for every challan generated by taxpayer and it will be valid for 15 days
• Once the challan is paid, 18-digit CIN (Challan identification number) will be generated by the banks. It is 14-digit CPIN +4-digit bank code.
• The taxpayer can transfer the balance in electronic cash ledger from one head to another head.

2. Electronic Credit Ledger

• The input tax credit from monthly GST returns (GSTR 3B) will be accumulated in electronic credit ledger.
• The credit in electronic credit ledger can be used for payment of only GST. Input tax credit cannot be used for payment of interest, penalty, fee etc.
• Electronic Credit Ledger has 4 major heads. They are IGST, CGS, SGST/UTGST and cess.
• Manner of utilization of ITC:
  
  
  • IGST ITC: it will be set off against IGST liability first and then CGST liability
  • CGST ITC: it will be set off against CGST liability first and then IGST liability.
  • SGST ITC: it will be set off against SGST liability first and then IGST liability.
  NOTE

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  1. IGST ITC should be completely exhausted first before using CGST/SGST credit
  2. CGST ITC should be utilized first before using SGST ITC for payment of IGST
  3. CGST ITC cannot be set off against SGST. Also, SGST ITC cannot be set off against CGST liability

3. Electronic Liability Register

• Electronic Liability Register is maintained by every GST registered taxpayer on GST portal. It will show the tax, interest, penalty, late fee or any other amount which is liable by taxpayer
• It contains 2 parts i.e., Part I for maintaining the return related liabilities and Part II for maintaining the complete description of the transactions of all liabilities other than related liabilities