What is an Electronic Credit Ledger under GST?

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Sakshi Shah

E-Credit Ledger
GST
GSTR-3B
ITC

An E-Credit Ledger or Electronic Credit Ledger under GST is the ledger where a taxpayer can view the input tax credit of GST claimed in GSTR-3B (on account of purchases and expenses). It is maintained on the GST Portal. Moreover, the balance in this ledger can be utilized for paying tax only and not for paying interest, late fee, penalty etc.

Electronic Credit Ledger under GST reflects:

The credit of Input GST from purchases and expenses can be used for paying Output GST on Sales.

What is an Electronic Cash Ledger under GST?
Read what is Electronic Cash Ledger under GST and how to deposit money for payment of tax (CGST, SGST, IGST, Cess), interest, fee, penalty
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What is an Electronic Cash Ledger under GST?
Read what is Electronic Cash Ledger under GST and how to deposit money for payment of tax (CGST, SGST, IGST, Cess), interest, fee, penalty
Read More

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.

How can I utilize balance of E-Credit Ledger?

To utilize the credit, the following rules must be considered:

  Output IGST Output CGST Output SGST Output Cess
IGST ITC  ✔️      ① ✔️       ② ✔️      ③ X
CGST ITC ✔️      ② ✔️       ① X X
SGST ITC ✔️      ② X ✔️      ① X
Cess ITC X X X ✔️      ①

Example

ABC Pvt Ltd has to determine tax liability to file GSTR-3B for July 2018. Below are the details.

Particulars Amount (Rs.)
Input CGST 10,000
Output CGST 20,000
Input SGST 25,000
Output SGST 20,000
Input IGST 45,000
Output IGST 40,000
Calculate Input Tax Credit online: ITC calculator
Input Tax Credit under GST means the credit of input tax paid on purchases. ITC can be used to set of against the CGST, SGST and IGST outward tax liabiliy.
Explore
Calculate Input Tax Credit online: ITC calculator
Input Tax Credit under GST means the credit of input tax paid on purchases. ITC can be used to set of against the CGST, SGST and IGST outward tax liabiliy.
Explore

Solution

Particulars IGST CGST SGST
Tax Payable 40000 20000 20000
Input Tax Credit 45000 10000 25000
Gross Tax Liability 0 10000 0
Remaining ITC 5000 0 5000
IGST Credit used for CGST (5000) 5000 0
IGST Credit used for SGST 0 0 0
CGST Credit used for IGST 0 0 0
SGST Credit used for IGST 0 0 0
Net Tax Payable 0 5000 0
ITC carried forward 0 0 5000

FAQs

Is it necessary to claim refund of the excess amount available in the Electronic Credit Ledger?

No, the amount may continue to remain in the Electronic Credit Ledger and can be utilized for any future liability. A refund can only be claimed if Input Tax Credit has been accumulated due to the export of goods and/or services and/or due to the rate of tax on outward supplies being lower than inward supplies.

Can I download the E-Credit Ledger?

Yes. You can download and save the E-Credit ledger from your dashboard in PDF and CSV format on your local device.

How can a taxpayer check the available balance in the Electronic Credit Ledger?

A taxpayer can log in to the GST Portal. Go to Services > Ledgers > Electronic Credit Ledger.

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