What is an E-Cash Ledger under GST?
The E-Cash or Electronic Cash Ledger 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. He 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 E-Cash Ledger maintained 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||Rs. 20,000||NIL|
|Late Fee||Not Allowed||Deposit Cash to pay Late Fee of Rs.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 the E-Cash Ledger?
- Login to GST Portal
- Log in to your account on GST Portal and Click on Services > Payment > Create Challan
- Create a Challan
- The taxpayer needs to create a Challan. Each Challan has a unique CIN i.e. Challan Identification Number.
- 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)
- Make the Payment
- He can then make the payment by selecting the payment option
- E-Cash Ledger updated
- Once the payment is made, the 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 utilised for payment of liability under other head.