How to Access and Manage E-Ledgers on GST Portal?

Summary

Introduction: The E-Ledger acts as a digital GST ledger accessible by all registrants through the GST portal. It comprises: * The electronic cash ledger , illustrating GST deposited in cash with the government.

Introduction:

The E-Ledger acts as a digital GST ledger accessible by all registrants through the GST portal. It comprises:

The electronic cash ledger, illustrating GST deposited in cash with the government.
The electronic credit ledger, displaying available Input Tax Credit (ITC).
The electronic liability ledger, detailing GST liabilities and clearing any outstanding liabilities.

This guide examines accessing e-ledgers on the GST Portal. You can also review these balances using ClearTax GST Software during GST Return filing.

What is an Electronic Cash Ledger?

Similar to an e-wallet, it records GST payments made in cash or via banking methods in the Electronic Cash Ledger. After deducting Input Tax Credit (ITC), any residual tax liability is cleared using this ledger's balance. For example, Mr. A has GST on sales of Rs 50,000 with an ITC of Rs 35,000, leaving a net GST liability of Rs 15,000, payable through cash or bank, and deposited into his Electronic Cash Ledger.

E-Ledgers under GST

The Electronic Cash Ledger balance, visible on the GST Portal, is crucial for paying GST dues. Shown here is the claimed Input Tax Credit in GST returns (GSTR-2 or GSTR-3B). The balance in the electronic credit ledger can solely address tax dues, excluding interest, penalties, or fees, which require cash payments. Rules for ITC application against GST dues include:

IGST credit applies as follows: IGST, CGST, SGST/UTGST.
CGST credit cannot be used for SGST, and follows CGST then IGST.
SGST/UTGST credit is not applicable for CGST and follows SGST/UTGST, then IGST.

In Mr. A’s situation with an ITC of Rs 35,000: IGST – Rs. 18,000, CGST – Rs. 7,000, SGST – Rs. 10,000. An IGST liability of Rs 30,000 is completely covered by IGST credit, with Rs 12,000 requiring cash payment. CGST credit of Rs. 7,000 against a Rs. 10,000 liability leaves Rs. 3,000. SGST credit handles SGST dues, exempting Mr. A from further SGST charges.

What is the Electronic Liability Ledger?

This ledger categorizes GST liabilities and their settlement in cash or credit, enabling tracking on the GST Portal.

E-Ledgers under GST

Understanding these e-ledgers is crucial, accessible on the GST portal. You can also input e-ledger balances into the ClearTax GST Software during GSTR-3B preparation.

Acronyms Explained: