The E-Cash or Electronic Cash Ledger under GST displays all the amounts deposited for payment of tax, interest, fee or penalty. It also reflects TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) since they are tax deposits of the taxpayer.
An E-Cash Ledger is like a digital wallet of the taxpayer. Taxpayer can deposit money into and utilize the balance for payment of liabilities. The payments options include NEFT, RTGS, Credit Card, Debit Card or Net Banking. The detailed report of money deposited and balance utilized can be viewed in the Electronic Cash Ledger available on the GST Portal.
Balance from E-Cash Ledger is utilized for:
- Payment of Tax – If the balance in the E-Credit Ledger is insufficient to pay tax
- Payment of Interest, Fee or Penalty – It should always be paid from e-cash ledger
While filing the monthly GSTR-3B, in Table 6.1 Payment of Tax, the credit balance and cash balance is auto-populated for the payment of Output Tax Liability.
GST on Sales = Rs.20,000
Late Fee Payable = Rs.5,000
Balance in E-Credit Ledger = Rs.35,000
|Pay from E-Credit Ledger||Pay from E-Cash Ledger|
|Output GST||INR 20,000||NIL|
|Late Fee||Not Allowed||Deposit Cash to pay Late Fee of INR 5,000|
Balance in E-Credit Ledger = Rs.15,000
Balance in E-Cash Ledger = Amount Deposited – Rs.5,000
How can I deposit money in Electronic Cash Ledger under GST?
- Login to GST Portal
Log in to your account on GST Portal
- Navigate to Create Challan
Taxpayer should create a Challan to make the payment. Each Challan has a unique CIN i.e. Challan Identification Number. Go to Services > Payment > Create Challan
- Select the Major Head and Minor Head
Enter the amounts under correct Major Head (IGST, CGST, SGST / UTGST, Cess) and Minor Head (Tax, Interest, Penalty, Fee, Others)
- Payment of Challan
Pay the challan using the appropriate payment option – E-payment, OTC, NEFT / RTGS [Read more – GST Challan Payment : Process to pay GST online]
- E-Cash Ledger updated
Once the payment is made, CIN i.e. Challan identification Number is communicated to the GST system and the E-Cash Ledger is updated with the funds under specific heads.
Note: Funds of one head cannot be utilized for payment of liability under the other head.
The following persons can view the Electronic Cash Ledger:
2. Authorised Signatory of taxpayer
3. GST Practitioner of taxpayer
4. Jurisdictional Officer of taxpayer
To view the details of the transactions, the taxpayer can view the Electronic Cash Ledger for the required duration. The option is available on the landing page of the Electronic Cash Ledger.
A maximum of 6 months transactions can be viewed at a time.
The amount available in the Electronic Cash Ledger can be utilized for payment of any liability for the respective major and minor heads. For example, liability for the tax under SGST can be utilized from the available amount of cash available under SGST only.
The balance from e-Cash Ledger is utilized for:
You can use the balance of e-Credit Ledger for payment of tax only. It cannot be used for payment of interest, fee, penalty etc. You can download Electronic Credit Ledger from the GST Portal.
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