Term E-cash Ledger under GST

Posted on 22 April 2023 Category : GST terms

What is E-cash Ledger under GST

Electronic Cash Ledger

The details about E-cash Ledger are explained here

Under GST, the emphasis is on simplifying administrative procedures and bringing transparency in the system. India is moving towards digitization and the same idea has been captured by lawmakers while drafting the GST bill.

Each registered taxpayer will get a profile created on the government’s GST website. The taxpayer using the login credentials will be able to access all features along with a dashboard. All the taxpayers will also get three electronic ledgers namely E-cash Ledger, E-credit Ledger & E-liability Ledger. These ledgers will reflect the amount of tax payable, input credit balance, and on adding money to the cash ledger the taxpayer will also be able to settle the tax liability online.

E-Cash Ledger:

This ledger will serve as an electronic wallet. Where, the taxpayer needs to make any payment such as tax, interest, penalty etc and he does not have enough credit in his E-Credit ledger, he will have to simply add money to the wallet and the money will be utilized to make the payment.

This ledger will basically reflect all the deposit made in cash using various modes.

This ledger will reflect all deposits made in cash, and TDS or (and) TCS made on account of the tax payer. This ledger can be used for making for making any payment on account of GST.

Electronic Cash Ledger is another account that every registered taxable person under GST law is required to maintain on GST common portal. This form is required to be maintained in FORM GST PMT-3 for crediting the amount deposited and debiting the payment therefrom toward tax, interest, penalty fee or any other amount.

In simple words, any amount which is outstanding in Electronic Tax Liability Register even after adjusting the amount lying in Electronic Credit Ledger, such excess amount is required to be deposited in Electronic Cash Ledger and be adjusted thereof.

Every registered taxable person is required to generate challan in FORM GST PMT-4 on GST portal and enter the details of the amount to be deposited by him toward tax, interest, penalty, fees or any other amount

This deposit can be made by way of following modes:

Internet Banking through authorized banks;
Credit Card or Debit Card after registering it on GST common portal through the authorized bank.
National Electronic Fund Transfer (NEFT) or Real Time Gross Settlement (RTGS) from any bank;
Over the counter payment (OTC) through authorized banks for deposits up to ten thousand rupees per challan per tax period, by cash, cheque or demand draft.

It is important to note that payment by way of cash or cheque or demand draft has been limited to the amount of Rs. 10,000 in a tax period for a registered person.

Also, the challan in FORM GST PMT-4 generated at the common portal shall be valid for a period of 15 days.

Also, all these entries will correspond to a system generated unique identification number for easy reference.

The information on E-cash Ledger is detailed above. Comment below your thoughts on E-cash Ledger

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CGST Act section 51 Tax deduction at source

CGST Act Section 52 Collection of tax at source

CGST Act section 53 Transfer of input tax credit

CGST Act section 54 Refund of tax

CGST Act Section 55 Refund in certain cases

CGST Act section 56 Interest on delayed refunds

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