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.
1. Can the amount available in cash ledger be deemed as payment for any liability?
No, unless the taxpayer makes a debit entry from a cash ledger for a specific liability, the amount lying in the cash ledger cannot be assigned to any liability.
2. Can a Departmental Officer debit my cash ledger in lieu of outstanding dues?
Yes, in exceptional circumstances, especially when the amount of additional demand is not stayed by the Appellate Authority, Tribunal, or Court, the amount can be debited from your Electronic Cash Ledger to the extent of the demand.
3. Is transfer of funds between the major heads permissible for discharging liabilities?
Amount available under one major head (SGST, CGST, IGST or CESS) cannot be utilised for discharging the liability under any other major head. For example, amount available in SGST cannot be utilised for discharging liabilities under CGST, IGST, or CESS and vice versa.