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:
- Input Tax Credit of GST accumulated from purchases and expenses
- Input Tax Credit of GST utilized for payment of output tax liability
- Balance Input Tax Credit that can be utilized in future
The credit of Input GST from purchases and expenses can be used for paying Output GST on Sales.
- If Input GST > Output GST, excess balance is reflected in E-Credit Ledger
- If Input GST < Output GST, the difference amount is to be deducted from the E-Credit ledger else difference amount is to be paid by depositing cash in the 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.
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 |
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
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.
Yes. You can download and save the E-Credit ledger from your dashboard in PDF and CSV format on your local device.
A taxpayer can log in to the GST Portal. Go to Services > Ledgers > Electronic Credit Ledger.