✅ INTRODUCTION TO E-LEDGERS

●​ Every registered taxable person under GST has three e-ledgers on the GST portal:​

1.​ Electronic Cash Ledger​

2.​ Electronic Credit Ledger​

3.​ Electronic Liability Ledger​

●​ These ledgers are used to pay taxes, interest, penalty, fees, or any other amount under
GST.​

📘 13.2 ELECTRONIC CASH LEDGER (Rule 87, CGST

Rules)
💡 Meaning:
●​ This ledger shows the cash deposited and used by the registered person for payments
under GST.​

●​ Maintained in Form GST PMT-05 on the GST portal.​

📝 Uses:
●​ Payment of:​

✔️
​
Tax​

✔️
​
Interest​

✔️
​
Penalty​

✔️
​
Fees​

✔️
​
Any other amount​
🏦 How to Deposit:
1.​ Create Challan in Form GST PMT-06.​

2.​ Choose any of the payment modes:​

○​ Internet Banking​

○​ Credit/Debit Card​

○​ UPI​

○​ IMPS, NEFT, RTGS​

○​ Over-the-Counter (OTC) up to ₹10,000 (via cash/cheque/DD)​

3.​ Challan is valid for 15 days.​

🧾 For Unregistered Persons:

●​ Even unregistered persons can deposit using a Temporary ID generated on the portal.​

🧾 Mandate Form:
●​ For NEFT/RTGS/IMPS, a mandate form is created with challan and submitted to the
bank.​

📅 Deposit Date:
●​ Considered as the date of credit to government, not debit from taxpayer’s bank.​

✅ CIN (Challan Identification Number):

●​ Generated by bank after payment is credited.​

●​ CIN = 14-digit CPIN + 3-digit Bank Code​

●​ When GST portal receives CIN, amount is credited to the Electronic Cash Ledger.​
❌ If CIN Not Received:
●​ Taxpayer must fill Form GST PMT-07 to report the issue.​

📥 TDS/TCS Credit:
●​ TDS (Sec 51) or TCS (Sec 52) claimed in GSTR-02 is credited to Electronic Cash
Ledger.​

💰 Refund Handling:
●​ If refund claimed: amount is debited.​

●​ If refund rejected (full/partial): rejected part is re-credited via Form GST PMT-03.​

⚠️ Discrepancy Handling:
●​ If any error is found in ledger, report through Form GST PMT-04.​

🔁 Intra-ledger Transfer (Form GST PMT-09):

●​ Amount can be shifted within the cash ledger (e.g., from CGST to SGST).​

●​ Also allowed for distinct persons, counted as refund.​

●​ Not allowed if any unpaid liability exists.​

🏢 13.2.1 ELECTRONIC FOCAL POINT BRANCH (E-FPB)

●​ E-FPB is a special branch of a bank authorised to collect GST payments.​

●​ Every authorised bank has one e-FPB across India.​

●​ It opens separate government accounts and credits GST payments into these accounts.​
🆔 13.2.2 CHALLAN IDENTIFICATION NUMBER (CIN)
●​ CIN is a 17-digit number:​

○​ 14-digit CPIN (from GST portal)​

○​ 3-digit Bank Code​

●​ CIN is proof that payment is received and credited to the government.​

●​ CIN is shared with both taxpayer and GSTN.​

📘 13.3 ELECTRONIC CREDIT LEDGER (Input Tax Credit

Ledger)
💡 Meaning:
●​ Shows all Input Tax Credit (ITC) available for a registered person.​

●​ Also known as Input Tax Ledger.​

●​ Separate balances for:​

○​ CGST​

○​ SGST/UTGST​

○​ IGST​

📋 Key Rule:
●​ Maintained in Form GST PMT-02.​

🚫 Limitations:
●​ Can be used only to pay output tax.​
 ●​ Cannot be used for:​

○​ Interest​

○​ Penalty​

○​ Fine​

○​ Fees​

💰 Refund Handling:
1.​ If ITC refund claimed → Debited from ledger.​

2.​ If refund rejected → Re-credited using:​

○​ Form GST PMT-03 (general)​

○​ Form GST PMT-03A (for self-correction or DRC-03)​

🛠 Correction of Errors:
●​ If any mistake, use Form GST PMT-04 to report.​

🚫 Power to Block ITC in Credit Ledger (Rule 86A)

✋ Who Can Block?
●​ Commissioner or officer (minimum Assistant Commissioner) can block ITC if fraud or
ineligibility is suspected.​

❌ Reasons to Block:
1.​ Supplier issuing invoice is non-existent or not doing real business.​

2.​ No actual receipt of goods/services.​

 3.​ Tax not paid to govt for that invoice.​

4.​ Registered person claiming ITC is non-existent or not doing real business.​

5.​ Claiming ITC without a valid document (invoice/debit note).​

✔️ Unblocking:
●​ Officer may allow debit again if conditions no longer exist.​

⏳ Auto-Unblock:
●​ Blocked ITC is automatically unblocked after 1 year from date of block.​

Here are exam-ready revision notes for Section 13.4 to 13.6.1 in extremely easy English, brief
but complete, and easy to remember:

✅
13.4 ELECTRONIC LIABILITY LEDGER (Tax Liability Ledger)

●​ Shows all pending tax amounts a registered person has to pay.​

●​ Maintained electronically by GSTN in Form GST PMT-01.​

●​ It includes:​

○​ Output tax from GSTR-1,​

○​ Interest on late payment,​

○​ Late fees, penalty, or demand notices.​

●​ Liability increases (debited) when:​

○​ Return is filed showing tax, interest, or penalty payable.​

○​ Officer determines extra amounts payable.​

 ●​ Liability reduces (credited) when:​

○​ Tax is paid using Electronic Cash Ledger or Electronic Credit Ledger.​

●​ TDS, TCS, Reverse Charge, Composition Tax – all are paid via Cash Ledger, then
credited to this ledger.​

●​ Discrepancies? Inform officer via Form GST PMT-04 on the portal.​

✅
13.5 PAYMENT OF TAX, INTEREST, PENALTY & OTHER AMOUNTS

1.​ Use of Ledgers:​

○​ Credit Ledger ➝ Only for paying TAX (IGST, CGST, SGST, UTGST).​

○​ Cash Ledger ➝ For paying Tax, Interest, Penalty, Late Fee, Reverse Charge Tax,
Composition Tax.​

2.​ How Ledgers Get Money:​

○​ Cash Ledger ➝ When payment is made using NEFT, RTGS, Debit/Credit Card,
Net Banking.​

○​ Credit Ledger ➝ When Input Tax Credit (ITC) is claimed through GSTR-2B.​

3.​ Rules for Using ITC:​

○​ IGST Credit → First IGST → then CGST & SGST/UTGST.​

○​ CGST Credit → First CGST → then IGST.​

○​ SGST Credit → First SGST → then IGST (if CGST credit is zero).​

✨
​
Note: SGST credit of one state can’t be used for another state.​

○​ UTGST Credit → First UTGST → then IGST (if CGST credit is zero).​

✨
​
Note: UTGST of one UT can’t be used for another UT.​
 ○​ ❌ CGST can’t be used for SGST/UTGST.​
○​ ❌ SGST/UTGST can’t be used for CGST.​
4.​ Refunds:​

○​ Balance in Cash Ledger → Refundable via GSTR-3, sent to bank account.​

○​ Balance in Credit Ledger → Refund only if input tax rate > output tax rate, apply
in Form RFD-01.​

5.​ Order of Paying Liabilities:​

○​ First: Old liabilities of previous years.​

○​ Then: Current year’s self-assessed liabilities.​

○​ Last: Other dues like penalties, demand notices, etc.​

⚠️ Assumption: Tax burden is passed to the buyer unless proved otherwise.

✅
13.6 INTEREST ON DELAYED PAYMENT OF TAX

(As per Section 50 of CGST Act)

1.​ If tax is not paid on time → Interest @ 18% per annum on net amount (after ITC).​

2.​ If ITC is claimed extra or wrongly or output tax is under-reported → Interest @ 18%.​

○​ (Applies retrospectively from July 2017).​

3.​ If tax is paid after due date → Interest @ 18%, only on cash ledger part.​

4.​ If ITC is wrongly availed & used → Interest @ 24%.​

○​ If supplier not paid in 180 days, ITC to be reversed + 18% interest.​

✅
13.6.1 INTEREST CALCULATION (Rule 88B)

●​ If return filed late, interest is calculated on net liability:​

​
= Total Tax – Available