E-Ledgers under GST: Electronic Cash, Credit, and Liability Ledger

E-Ledgers under GST: Electronic Cash, Credit, and Liability Ledger

Introduction:

E-Ledger is a digital version of a passbook for GST. These e-ledgers are accessible to all GST registrants on the GST portal. They contain details regarding the following:

- The amount of GST deposited in cash to the government in the electronic cash ledger.

- The balance of Input Tax Credit (ITC) available in the electronic credit ledger.

- The manner in which GST liability and any remaining liability are set off in the electronic liability ledger.

Here is our guide on how to access the e-ledgers on the GST Portal. The balances of these ledgers are also available on the ClearTax GST Software when filing GST Returns.

What is an Electronic Cash Ledger?

Think of it as an e-wallet. Any GST payment made in cash or through a bank is reflected in the Electronic Cash Ledger. After deducting Input Tax Credit (ITC), any remaining tax liability must be paid using the balance in the Electronic Cash Ledger. For example, let's say Mr. A has a GST on sales of Rs 50,000 and an Input Tax Credit on purchases of Rs 35,000. The balance in his Electronic Cash Ledger would be zero.

Particulars Amount

GST on Sales 50,000

Input Tax Credit (ITC) 35,000

GST Liability to be paid 15,000

The GST liability of Rs. 15,000 must be paid in the form of cash or bank payment. Mr. A will deposit Rs 15,000, which will then be shown in his Electronic Cash Ledger. The balance in the ledger will be used for the payment of GST. This payment will reflect in Mr. A's Electronic Cash Ledger as shown below:

E-Ledgers under GST

The balance in the Electronic Cash Ledger is utilized for the payment of GST liability. This is how it reflects on the GST Portal when offsetting GST liability.

All eligible Input Tax Credit claimed by a registered dealer in the GST returns (GSTR-2 or GSTR-3B) is reflected in the Electronic Cash Ledger. The credit in the Electronic Cash Ledger can only be used for the payment of tax. This means that the balance in the Electronic Credit Ledger cannot be used to pay interest, penalty, or late fees. Interest and penalty can only be paid through actual cash payment. There are specific orders and restrictions for utilizing ITC (IGST, CGST, SGST) for the payment of GST liability:

- Credit of IGST can be utilized against any tax liability in this order: IGST, CGST, or SGST/UTGST.

- Credit of CGST cannot be utilized for the payment of SGST. It can be set off in the following order: CGST, IGST.

- Credit of SGST/UTGST cannot be utilized for the payment of CGST. SGST can be set off in the following order: SGST/UTGST, IGST.

Let’s use the example mentioned earlier. Mr. A has an Input Tax Credit (ITC) of Rs 35,000, with the following breakdown:

- IGST – Rs. 18,000

- CGST – Rs. 7,000

- SGST – Rs. 10,000

The IGST liability is Rs 30,000. The IGST credit of Rs 18,000 will be entirely used to offset this liability. The remaining IGST of Rs 12,000 needs to be paid in cash, which will then reflect in the Electronic Cash Ledger.

In the case of CGST, the credit of Rs. 7,000 will be set off against the liability of Rs. 10,000, and CGST of Rs. 3,000 will need to be paid. The SGST payable is equal to the available SGST credit. This means that Mr. A does not have to pay any SGST.

What is the Electronic Liability Ledger?

This ledger contains details of the GST liability. It includes the total GST liability and the manner in which it has been paid, whether in cash or through credit. In the above example, the manner in which the GST liability is set off can be seen in the Electronic Liability Register. This is how the Electronic Liability Ledger looks on the GST Portal.

E-Ledgers under GST

Having a basic understanding of these e-ledgers is important. You can access them through the GST portal. Additionally, the balance of the e-ledgers can be imported to the ClearTax GST Software when filing GSTR-3B.

Introduction:

E-Ledger is a digital version of a passbook for GST. These e-ledgers are accessible to all GST registrants on the GST portal. They contain details regarding the following:

- The amount of GST deposited in cash to the government in the electronic cash ledger.

- The balance of Input Tax Credit (ITC) available in the electronic credit ledger.

- The manner in which GST liability and any remaining liability are set off in the electronic liability ledger.

Here is our guide on how to access the e-ledgers on the GST Portal. The balances of these ledgers are also available on the ClearTax GST Software when filing GST Returns.

What is an Electronic Cash Ledger?

Think of it as an e-wallet. Any GST payment made in cash or through a bank is reflected in the Electronic Cash Ledger. After deducting Input Tax Credit (ITC), any remaining tax liability must be paid using the balance in the Electronic Cash Ledger. For example, let's say Mr. A has a GST on sales of Rs 50,000 and an Input Tax Credit on purchases of Rs 35,000. The balance in his Electronic Cash Ledger would be zero.

Particulars Amount

GST on Sales 50,000

Input Tax Credit (ITC) 35,000

GST Liability to be paid 15,000

The GST liability of Rs. 15,000 must be paid in the form of cash or bank payment. Mr. A will deposit Rs 15,000, which will then be shown in his Electronic Cash Ledger. The balance in the ledger will be used for the payment of GST. This payment will reflect in Mr. A's Electronic Cash Ledger as shown below:

E-Ledgers under GST

The balance in the Electronic Cash Ledger is utilized for the payment of GST liability. This is how it reflects on the GST Portal when offsetting GST liability.

All eligible Input Tax Credit claimed by a registered dealer in the GST returns (GSTR-2 or GSTR-3B) is reflected in the Electronic Cash Ledger. The credit in the Electronic Cash Ledger can only be used for the payment of tax. This means that the balance in the Electronic Credit Ledger cannot be used to pay interest, penalty, or late fees. Interest and penalty can only be paid through actual cash payment. There are specific orders and restrictions for utilizing ITC (IGST, CGST, SGST) for the payment of GST liability:

- Credit of IGST can be utilized against any tax liability in this order: IGST, CGST, or SGST/UTGST.

- Credit of CGST cannot be utilized for the payment of SGST. It can be set off in the following order: CGST, IGST.

- Credit of SGST/UTGST cannot be utilized for the payment of CGST. SGST can be set off in the following order: SGST/UTGST, IGST.

Let’s use the example mentioned earlier. Mr. A has an Input Tax Credit (ITC) of Rs 35,000, with the following breakdown:

- IGST – Rs. 18,000

- CGST – Rs. 7,000

- SGST – Rs. 10,000

The IGST liability is Rs 30,000. The IGST credit of Rs 18,000 will be entirely used to offset this liability. The remaining IGST of Rs 12,000 needs to be paid in cash, which will then reflect in the Electronic Cash Ledger.

In the case of CGST, the credit of Rs. 7,000 will be set off against the liability of Rs. 10,000, and CGST of Rs. 3,000 will need to be paid. The SGST payable is equal to the available SGST credit. This means that Mr. A does not have to pay any SGST.

What is the Electronic Liability Ledger?

This ledger contains details of the GST liability. It includes the total GST liability and the manner in which it has been paid, whether in cash or through credit. In the above example, the manner in which the GST liability is set off can be seen in the Electronic Liability Register. This is how the Electronic Liability Ledger looks on the GST Portal.

E-Ledgers under GST

Having a basic understanding of these e-ledgers is important. You can access them through the GST portal. Additionally, the balance of the e-ledgers can be imported to the ClearTax GST Software when filing GSTR-3B.

Download App

Explore More

Managing assets totalling over 1 crore+