𝗙𝗔𝗤𝘀 > 𝗨𝘁𝗶𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗘𝗹𝗲𝗰𝘁𝗿𝗼𝗻𝗶𝗰 𝗖𝗮𝘀𝗵 𝗮𝗻𝗱 𝗜𝗻𝗽𝘂𝘁 𝗧𝗮𝘅 𝗖𝗿𝗲𝗱𝗶𝘁 (𝗜𝗧𝗖) 𝗟𝗲𝗱𝗴𝗲𝗿 𝟭. 𝗜 𝘄𝗮𝘀 𝘁𝗿𝘆𝗶𝗻𝗴 𝘁𝗼 𝗺𝗮𝗸𝗲 𝗽𝗮𝘆𝗺𝗲𝗻𝘁 𝗼𝗳 𝘁𝗵𝗲 𝘁𝗮𝘅 𝗮𝗻𝗱 𝘄𝗮𝘀 𝘁𝗿𝘆𝗶𝗻𝗴 𝘁𝗼 𝗼𝗳𝗳𝘀𝗲𝘁 𝗺𝘆 𝗹𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗘𝗹𝗲𝗰𝘁𝗿𝗼𝗻𝗶𝗰 𝗖𝗮𝘀𝗵 𝗟𝗲𝗱𝗴𝗲𝗿; 𝗵𝗼𝘄𝗲𝘃𝗲𝗿 𝗜 𝗳𝗮𝗰𝗲𝗱 𝗲𝗿𝗿𝗼𝗿. 𝗢𝗻 𝘄𝗵𝗮𝘁 𝗯𝗮𝘀𝗶𝘀 𝗰𝗮𝗻 𝗜 𝘂𝘁𝗶𝗹𝗶𝘇𝗲 𝘁𝗵𝗲 𝗯𝗮𝗹𝗮𝗻𝗰𝗲 𝗶𝗻 𝗘𝗹𝗲𝗰𝘁𝗿𝗼𝗻𝗶𝗰 𝗖𝗮𝘀𝗵 𝗹𝗲𝗱𝗴𝗲𝗿? The utilization of Cash from Electronic Cash Ledger is done on the basis of following principles:

𝟭. 𝗥𝗨𝗟𝗘 𝟭: The amount of Cash deposited for CGST/SGST/UTGST/IGST/Cess in the Electronic Cash Ledger can be used for payment of CGST/SGST/UTGST/IGST/Cess liabilities respectively. No inter head adjustment is allowed for major heads. 𝟮. 𝗥𝗨𝗟𝗘 𝟮: Cash deposited under the minor head i.e. Tax/Interest/Fee/Penalty/Others in the Electronic Cash Ledger can be utilized for payment of Tax/Interest/Fee/Penalty/Others liabilities respectively of the same major head. No minor head adjustment is allowed.

𝟯. 𝗥𝗨𝗟𝗘 𝟯: Amount under Cash Ledger will be used in the following priority order: (a) self-assessed tax, and other dues related to returns of previous tax periods; Previous month tax liability covers: a. Tax liability reported but not paid b. Interest/penalty/fee arising out of previous month return period declarations (b) self-assessed tax, and other dues related to return of current tax period; Current month tax liability includes: a. Liability for invoices and amendments uploaded for previous months b. ITC reversal due to mismatch of invoice (Reversal under Section 42 (5) & (6) for (M-2) Tax Period) c. Tax amount increased in M Tax period as a consequence of reduction of liability by supplier in (M-2) tax period but without corresponding reduction in ITC by the receiver (Section 43(6)) d. Liability for invoices and other consolidated declarations uploaded for current month. (c) Any other amount payable under the Act or the rules made thereunder including the demand determined under section 73 or 74.

𝟰. 𝗥𝗨𝗟𝗘 𝟰: The amount allowed to be entered for utilization of cash can’t be more than the amount of balance available under the respective major/minor head of tax in Cash Ledger. 𝟮. 𝗛𝗼𝘄 𝘁𝗼 𝘂𝘁𝗶𝗹𝗶𝘇𝗲 𝘁𝗵𝗲 𝗜𝗻𝗽𝘂𝘁 𝗧𝗮𝘅 𝗖𝗿𝗲𝗱𝗶𝘁? RULE 1: Credit can be utilized to pay off the liabilities in the following manner: (a) IGST input tax credit shall first be utilized towards payment of IGST liability and the amount remaining, if any, may be utilized towards the payment of CGST, SGST/UTGST liabilities in any order, before utilizing the CGST, SGST/UTGST credit. (b) CGST input tax credit shall first be utilized towards payment of CGST liability and the amount remaining, if any, may be utilized towards the payment of IGST liability. CGST credit shall be utilized only if IGST credit is not available. (c) SGST/UTGST input tax credit shall first be utilized towards payment of SGST/UTGST liability and the amount remaining, if any, may be utilized towards payment of IGST liability (if no CGST credit is available). SGST/UTGST credit shall be utilized only if IGST credit is not available. (d) CGST input tax credit cannot be utilized towards payment of SGST/UTGST liabilities and (e) SGST/UTGST input taxed credit cannot be utilized towards payment of CGST liabilities.

𝗥𝗨𝗟𝗘 𝟮: ITC cannot be utilized for payment of reverse charge liabilities. 𝗥𝗨𝗟𝗘 𝟯: ITC can be utilized for payment of tax only. 𝗥𝗨𝗟𝗘 𝟰: ITC can’t be utilized for payment of TDS/TCS/interest/penalty/fee/others. 𝗥𝗨𝗟𝗘 𝟱: The amount allowed to be entered for utilization of credit can’t be more than the amount of balance available in the Electronic Credit Ledger.

𝗥𝗨𝗟𝗘 𝟲: A unique transaction number shall be generated at the Common Portal for each debit or credit to the electronic cash or credit or liability ledger and the same will be reflected in the corresponding ledgers of the taxpayer.

𝗥𝗨𝗟𝗘 𝟳: Credit availed on input CESS paid on inward supplies will be available for set-off against any output tax liability of Cess only. There is no Inter head adjustment for Cess Input Tax Credit.

𝟯. 𝗖𝗮𝗻 𝗜 𝗽𝗲𝗿𝗳𝗼𝗿𝗺 𝗶𝗻𝘁𝗿𝗮-𝗵𝗲𝗮𝗱 𝗼𝗿 𝗶𝗻𝘁𝗲𝗿-𝗵𝗲𝗮𝗱 𝘁𝗿𝗮𝗻𝘀𝗳𝗲𝗿 𝗼𝗳 𝗮𝗺𝗼𝘂𝗻𝘁 𝗮𝘃𝗮𝗶𝗹𝗮𝗯𝗹𝗲 𝗶𝗻 𝗘𝗹𝗲𝗰𝘁𝗿𝗼𝗻𝗶𝗰 𝗖𝗮𝘀𝗵 𝗟𝗲𝗱𝗴𝗲𝗿? Yes, you can perform intra-head or inter-head transfer of amount, as available in Electronic Cash Ledger, using Form GST PMT-09. Form GST PMT-09 enables any registered taxpayer to perform, intra-head or inter-head transfer of amount, as available in Electronic Cash Ledger. Thus, a registered taxpayer can now file Form GST PMT-09 for transfer of any amount of tax, interest, penalty, fee or others, under one (major or minor) head to another (major or minor) head, as available in the Electronic Cash Ledger. Navigate to Services > Ledgers > Electronic Cash Ledger > File GST PMT-09 For Transfer of Amount option to file Form GST PMT-09.