e-account mechanism under GST Tax payment system in India


e-Ledger and e-Tax liability under GST Tax payment system?

e-account mechanism under GST Tax payment system in IndiaOnce after obtaining log in ID and password from Goods and Service Tax Network (GSTN), a tax payer can operate and maintain his account very easily. As informed earlier, GST Tax payments and returns filings is simplified very much so as to enable the tax payers to support ease of doing business.

Let us discuss here the mechanism of GST e-ledger and how does it work.

E-ledger or electronic ledger is statement of cash and input tax credit in respect of a registered tax payer. Once a tax payer makes GST tax payment by cash, cheque, internet banking, RTGS or NEFT the amount is credited in their respective electronic ledger. Two E-ledgers are generated once after registering with common portal of GST called GSTN by a tax payer. They are Cash ledger and Input Tax Credit Ledger. Both cash ledger and input tax credit legers can be viewed by a tax payer as explained earlier.

How does the e-Cash Ledger of GST work in India?

The cash ledger will reflect all deposits made in cash, and TDS or(and) TCS made on account of the taxpayer. The information will be reflected on real time basis. This ledger can be used for making any payment on account of GST.

What is Input Tax Ledger under GST?

On each business transaction, the Input Tax Credit eligibility also is reflected in the said GST e-ledger and a tax payer can easily take action on payment or refund claim based on such immediate available information.

Input Tax Credit as self-assessed in monthly returns will be reflected in the ITC Ledger. The credit in this ledger can be used to make payment of TAX ONLY and no other amounts such as interest, penalty, fees etc.


Electronic Tax Liability Ledger under GST e-ledger

What is an electronic tax liability ledger under GST E-ledger mechanism?

Apart from cash ledger and input tax credit leger an Electronic Tax Liability Ledger is also available in a GST e-ledger. So Tax Liability Register will reflect the total tax liability of a taxpayer (after netting) for the particular month. This e-Tax Liability Ledger will be automatically displayed on a GST Tax payer’s dashboard at all times. So it’s a hassle free arrangements of any GST tax payer to follow and act up on their GST tax liability at any time anywhere in the world.

This post explains about e-ledger mechanism of GST tax payment and returns system in India. The post explains about electronic cash ledger for GST, e-ledger for Input Tax Credit of GST and e-ledger for GST Tax liability. If you would like to add more information about cash ledger, ITC ledger and Tax liability ledger for GST in India, share below your views:


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