GST Ledgers

Now, each one of us is fairly familiar with the GST portal i.e. https://www.gst.gov.in. The said GST portal contains some significant GST ledgers and register, the understanding of which is essential for each and every registered person under GST. Article contain detailed guide on Electronic Cash Ledger/Credit & Liability Register in GST and its steps to process on government portal in simple language. 

The said significant ledgers and register are named as the following on the GST portal –

  1. Electronic Cash Ledger;
  2. Electronic Credit Ledger; and
  3. Electronic Liability Register.

After going through the above names, one will surely figure out the basics of the said GST ledgers and register. However, it plays a significant role in the life-cycle of the registered person. Hence, an in-depth understanding of the same is necessary which one can acquire by going through the current article.

The present article firstly provides simple understanding of ‘Electronic Cash Ledger’, ‘Electronic Credit Ledger’ and ‘Electronic Liability Register’. After basic understanding, each ledgers and register are explained briefly.

GST Ledgers : Electronic Ledgers Types & Basic Understanding

GST Ledgers Types

Before going in-depth, first of all, let us grab a simple and basic understanding of the ledgers and register. The same is tabulated hereunder

Ledgers/ register

Format in which the ledgers/ register are maintained

Relevant provisions

Particulars of ledgers/ register

Electronic Cash Ledger

Form GST PMT-05

Section 49(1) of the Central Goods and Services Tax Act, 2017 read with rule 87 of the Central Goods and Services Tax Act, 2017

It will reflect a deposit (payment) of tax, interest, fee, penalties under GST or any other amount by the registered person.

Electronic Credit Ledger

Form GST PMT-02

Section 49(2) of the Central Goods and Services Tax Act, 2017 read with rule 86 of the Central Goods and Services Tax Act, 2017

It will reflect the claim of an input tax credit of the registered person.

Electronic Liability Register

Form GST PMT-01

Section 49(7) of the Central Goods and Services Tax Act, 2017 read with rule 85 of the Central Goods and Services Tax Act, 2017

It will reflect the amount of tax, interest, penalty, fee or any other amount which the registered person is liable to pay.

It is important to note that in case the registered person under GST comes across any discrepancies under ‘Electronic Cash Ledger’ or ‘Electronic Credit Ledger’ or Electronic Liability Register’, the same can be intimated to the jurisdictional officer in Form GST PMT-04.

What is Electronic Cash Ledger

Electronic Cash Ledger

‘Electronic Cash Ledger’ reflects the amount of tax, interest, penalty, fees or any other payment deposited by the registered person by any of the following modes –

  1. Using credit cards or debit cards via authorized banks;
  2. Interest banking via authorized banks;
  3. NEFT/ RTGS; or
  4. Over the counter payment for deposits up to INR 10,000/- per challan per tax period through cash or cheque or demand draft via authorized banks.

Steps post which amount deposited will get credited in Electronic Cash Ledger. The steps are explained along with flowchart –

  1. Firstly, the registered person will make payment of the respective amount via any of the preferred modes (as stated above);
  2. Once the payment is done by the registered person, the amount will get credited to the concerned government account maintained in the authorized bank;
  3. The collecting bank will issue Challan Identification Number (popularly known as CIN). Notably, CIN will be indicated in the challan; and  
  4. Lastly, once CIN is received, the respective amount will be credited to the Electronic Cash Ledger.
Cash Ledgers Flowchart

The amount credited/ available in the Electronic Cash Ledger can be used for making payment of tax or interest or penalty or fee or any other amount liable to be paid by the registered person in the respective tax period.

What is Debit and Credit in Electronic Cash Ledger?

Particulars

Details

Credit

Integrated tax, Central tax, State tax, Cess, interest, fee, penalty or any other amount deposited via any of the specified modes.

Debit

Integrated tax, Central tax, State tax, Cess, interest, fee, penalty or any other amount as per the transaction and liability of the respective tax period.

How can I Download Electronic Cash Ledger from GST portal?

Steps to access the ‘Electronic Cash Ledger’ on the GST portal are described hereunder

STEP 1 – Visit https://www.gst.gov.in (GST Portal);

STEP 2 – Click ‘Login’ and enter ‘Username’, ‘Password’ and ‘Characters shown in the image’;

STEP 3 – Navigate Services > Ledgers > Electronic Cash Ledger; and

STEP 4 – Select the period from the drop-down list and click ‘GO’.

What is Electronics Credit Ledger?

Electronic Credit Ledger

‘Electronic Credit Ledger’ reflects the amount of eligible input tax credit claimed by the registered person via GST returns i.e. Form GSTR-3B or auto-populated return Form GSTR-2B.

Importantly, the registered person can make payment of only tax (IGST or CGST or SGST or UTGST or Cess) via ‘Electronic Credit Ledger’. That means, the registered person cannot make payment of interest, fees, penalty or any other amount via ‘Electronic Credit Ledger’.

Whenever the registered person avails new ‘Input Tax Credit’, the same is credited (i.e., added) in ‘Electronic Credit Ledger’. Similarly, whenever, the registered person uses/ utilizes the availed ‘Input Tax Credit’, the same is debited (i.e., subtracted) in ‘Electronic Credit Ledger’.  

Notably, utilization of input tax credit in ‘Electronic Credit Ledger’ has its own rules and order. The same is explained hereunder

Particulars

Order of utilization of input tax credit

Integrated tax credit (IGST credit)

  1. Firstly, to be used towards the payment of output tax liability of integrated tax;
  2. Secondly, to be used towards the payment of output tax liability of central tax (CGST) or state tax (SGST).

It is important to completely use the IGST credit before using CGST credit or SGST credit.

Central tax credit (CGST credit)

  1. Firstly, to be used towards the payment of output tax liability of central tax (CGST);
  2. Secondly, to be used towards the payment of pending output tax liability of integrated tax, if any.

CGST credit cannot be used for the payment of output tax liability of state tax (SGST).

State tax credit (SGST credit)

  1. Firstly, to be used towards the payment of output tax liability of state tax (SGST);
  2. Secondly, to be used towards the payment of pending output tax liability of integrated tax, if any.

SGST credit cannot be used for the payment of output tax liability of central tax (CGST).

How do I Claim my Electronic Credit Ledger?

Let us check out easy Steps to access the ‘Electronic Credit Ledger’ on the GST portal

STEP 1 – Visit https://www.gst.gov.in (GST Portal);

STEP 2 – Click ‘Login’ and enter ‘Username’, ‘Password’ and ‘Characters shown in the image’;

STEP 3 – Navigate Services > Ledgers > Electronic Credit Ledger; and

STEP 4 – Select the period from the drop-down list and click ‘GO’.

What is Electronic Liability Register in GST?

Electronic Liability Register

‘Electronic Liability Register’ reflects total output tax liability payable by the registered person and the manner in which the output tax liability of the respective tax period is discharged i.e. via Electronic Cash Ledger’ or ‘Electronic Credit Ledger’.

Notably, ‘Electronic Liability Register’ is provided on the GST portal in the following two parts –

  1. Part- IReturn related liabilities – It covers details of output tax liabilities and the manner in which the said output tax liability is discharged by the registered person.
  2. Part- IIOther than return related liabilities – It may include details of liabilities like –
    • Liabilities due to reduction/ enhancement in the amount payable due to decision via appeal/ rectification/ revision etc.;
    • Payment made against notice or any other payment made voluntarily;
    • Reduction in the amount of penalty based on the payment made after notice within the time specified; etc.

How do I check my electronic liability register?

Steps to access the ‘Electronic Liability Register’ on the GST portal are described hereunder –

STEP 1 – Visit https://www.gst.gov.in (GST Portal);

STEP 2 – Click ‘Login’ and enter ‘Username’, ‘Password’ and ‘Characters shown in the image’;

STEP 3 – Navigate Services > Ledgers > Electronic Liability Register;

STEP 4 – Select Part -1 for ‘Return related liabilities’ or select Part -II for ‘Other than return related liabilities;

STEP 5 – Select the period from the drop-down list and click ‘GO’.

GST Ledgers : Role under GST

Electronic Cash Ledger, Electronic Credit Ledger and Electronic Liability Register plays important role under GST. The ledgers and register is available on the GST portal which the registered person can access after login in the portal.

  • Electronic Cash Ledger reflects the amount of tax or interest or fee or penalty or any other amount deposited by the registered person and the amount utilized towards output tax liability.
  • Electronic Credit Ledger reflects the amount of new eligible input tax credit and the amount of input tax credit utilized.
  • Electronic Liability Register reflects the output tax liability by the registered person and the manner in which the output tax liability is discharged.

CA Poonam Gandhi

About the author

Poonam Gandhi is a Chartered Accountant and a Lawyer. She is a Professional Freelance Content Writer/ Editor and an Educator.

She masters in creating result-oriented as well as Search Engine Oriented Content. Currently, she is associated with some of the topmost leading sites of India.

She holds more than 3 years of experience in the content field. Before entering the content writing field, she possessed a wide practice experience of more than 9 years, specifically, in the field of Indirect Taxation.

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