This article details Chapter 9 of the Central Goods and Services Tax (CGST) Rules, focusing on the provisions for tax payments. These rules are crucial for understanding the mechanisms of tax remittance within the GST framework.

Electronic Liability Register

The electronic liability register, mandated by subsection (7) of Section 49, is managed in FORM GST PMT-01. This register is maintained on the common portal for every individual or entity obligated to pay tax, interest, penalties, late fees, or any other due amounts. All such payable sums are debited to this register.

The electronic liability register is debited by:

• Amounts due for tax, interest, late fees, or any other sums as per the return filed by the individual.
• Tax, interest, penalties, or any other amounts determined by a proper officer through proceedings under the Act, or as self-ascertained.
• Tax and interest amounts payable due to discrepancies under Section 42, Section 43, or Section 50.
• Any interest that may accrue periodically.

In line with Section 49, all liabilities declared in a registered person's return must be settled by debiting either the electronic credit ledger (as per Rule 86) or the electronic cash ledger (as per Rule 87), with a corresponding credit to the electronic liability register.

Amounts deducted under Section 51, collected under Section 52, payable on a reverse charge basis, or under Section 10, including interest, penalties, fees, or other sums under the Act, must be paid by debiting the electronic cash ledger (as per Rule 87), which is then credited to the electronic liability register.

Any demand amount debited in the electronic liability register is reduced to the extent of relief granted by an appellate authority, Appellate Tribunal, or court, and the electronic tax liability register is credited accordingly.

The penalty imposed or potentially imposed may be partially or fully reduced if the taxable person pays the tax, interest, and penalty specified in the show cause notice or demand order, with a corresponding credit to the electronic liability register.

Should a registered person identify any discrepancy in their electronic liability ledger, they must report it to the jurisdictional officer via the common portal using FORM GST PMT-04.

Electronic Credit Ledger

The electronic credit ledger, maintained in FORM GST PMT-02, is designated for each registered person who qualifies for input tax credit (ITC) under the GST Act. This ledger is accessible on the common portal, and all valid ITC claims are credited to it.

The electronic credit ledger is debited when any liability is discharged, in accordance with Section 49's provisions.

If a registered person requests a refund of unutilized amounts from the electronic credit ledger, as per Section 54, the claimed amount is debited from the ledger.

If the filed refund is rejected, either partially or entirely, the debited amount (to the extent of rejection) is re-credited to the electronic credit ledger by the proper officer via an order made in FORM GST PMT-03.

Except as provided in this Chapter, no direct entries are permitted in the electronic credit ledger under any circumstances.

A registered person noticing any discrepancy in their electronic credit ledger must notify the jurisdictional officer through the common portal using FORM GST PMT-04.

Explanation:

For the purpose of this rule, a refund is considered rejected if the appeal is definitively denied or if the claimant provides an undertaking to the proper officer stating that no appeal will be filed.

Electronic Cash Ledger

Under subsection (1) of Section 49, the electronic cash ledger, found in FORM GST PMT-05, serves as a record for every individual or entity responsible for tax, interest, penalty, late fees, or other payments. This ledger, maintained on the common portal, registers deposited amounts as credits and debits payments made for these liabilities.

Any person, or someone acting on their behalf, must generate a challan using FORM GST PMT-06 on the common portal, detailing the amount to be deposited for tax, interest, penalties, fees, or other sums.

Deposits under sub-rule (2) can be made through the following methods:

• Internet Banking via authorized banks.
• Credit or Debit card payments through authorized banks.
• National Electronic Fund Transfer (NEFT) or Real-Time Gross Settlement (RTGS) from any bank.
• Over-the-Counter (OTC) payments through authorized banks for deposits up to ten thousand rupees per challan per tax period, using cash, cheque, or demand draft.

However, the ten thousand rupees limit for OTC payments does not apply to deposits made by:

• Government Departments or other persons notified by the Commissioner.
• Proper officers or authorized officers recovering outstanding dues, including through property attachment or sale.
• Proper officers or authorized officers for amounts collected via cash, cheque, or demand draft during investigation, enforcement, or ad hoc deposits.

Furthermore, a challan generated in FORM GST PMT-06 on the common portal remains valid for fifteen days.

Explanation:

Any commission payable for making a payment indicated in the challan must be borne by the person making that payment.

Payments required from persons unregistered under the Act must be made using a temporary identification number generated through the common portal.

For NEFT or RTGS payments, the mandate form, generated alongside the challan on the common portal, must be submitted to the bank from which the payment originates. This mandate form is valid for fifteen days from the challan generation date.

Upon successful credit of the amount to the government account in the authorized bank, a Challan Identification Number (CIN) is generated by the collecting bank and shown on the challan.

Once the CIN is received from the collecting bank, the deposited amount is credited to the electronic cash ledger of the person on whose behalf the deposit was made, and the common portal issues a receipt.

If the concerned person's bank account (or the account of the person making the deposit on their behalf) is debited, but no CIN is generated or communicated to the common portal, the person may file an electronic representation in FORM GST PMT-07 through the common portal to the bank or electronic gateway that initiated the deposit.

Any amount deducted under Section 51 or collected under Section 52, and claimed in FORM GSTR-02 by the registered taxable person from whom it was deducted or collected, is credited to their electronic cash ledger as per Rule 87.

If a person claims a refund from the electronic cash ledger, the claimed amount is debited from it.

Should the refund claim be rejected, either partially or completely, the debited amount (to the extent of rejection) is re-credited to the electronic cash ledger by the proper officer via an order made in FORM GST PMT-03.

A registered person noting any discrepancy in their electronic cash ledger must report it to the jurisdictional officer via the common portal using FORM GST PMT-04.

Explanation 1:

A refund is considered rejected if the appeal is finally denied.

Explanation 2:

For the purposes of this rule, a refund is deemed rejected if the appeal is ultimately denied or if the claimant undertakes to the proper officer not to file an appeal.

Unique Identification for Transactions

A unique identification number is generated on the common portal for every debit or credit entry made in either the electronic cash ledger or the electronic credit ledger.

The unique identification number associated with the discharge of any liability must be recorded in the corresponding entry in the electronic liability register.

A unique identification number is also generated on the common portal for each credit entry in the electronic liability register that is not related to liability discharge as described in sub-rule (2).