GST Payment Mechanisms: Forms and Electronic Ledgers for Tax Dues
This article outlines the essential forms and electronic ledgers taxpayers must maintain for GST compliance. It details the electronic tax liability register (Form GST PMT-01) for recording all tax dues, the electronic credit ledger (Form GST PMT-02) for managing input tax credit, and the electronic cash ledger (Form GST PMT-05) for monetary deposits. Additionally, it clarifies the conditions for Over-the-Counter payments and exemptions to these rules for specific entities.
Registered individuals must complete specific forms for settling their Goods and Services Tax (GST) obligations. Additionally, certain essential registers are required for accurate assessment and payment of GST liabilities.
GST Payment Forms and Ledgers
Every taxpayer is mandated to maintain an electronic tax liability register, identified as Form GST PMT-01, to record all liabilities related to GST, including tax, interest, penalties, and fees. The applicant's total tax liability is recorded as a debit in this electronic ledger.
The electronic tax liability register is debited with the following amounts: - Tax, interest, penalties, and late fees, or any other sum declared by the applicant in their filed returns. - Amounts of tax, interest, penalties, and late fees determined by a proper officer during any official proceedings. - Tax and interest due to discrepancies found in the reconciliation of inward and outward supply details or during tax assessments. - Any accrued interest that becomes payable over time.
Electronic Credit Ledger
Obligations recorded in the electronic tax liability ledger can be settled by either utilizing the electronic credit ledger or the funds available in the electronic cash ledger. Any taxpayer eligible for input tax credit (ITC) under GST must maintain an electronic credit ledger, designated as Form GST PMT-02.
All legitimate ITC claims made by the taxpayer are credited to this electronic ledger, which is accessible on the common GST portal. Conversely, any ITC refunds requested by the applicant are debited from this ledger. If a refund application is rejected by the proper officer, an order may be issued to re-credit the debited amount back to the electronic credit ledger. Taxpayers are required to report any inconsistencies in their electronic credit ledger to the appropriate authority by submitting Form GST PMT-04.
Electronic Cash Ledger
All individuals liable for GST payments, including tax, interest, penalties, and late fees, are required to maintain an electronic cash ledger, specified as Form GST PMT-05. To deposit funds into this ledger, taxpayers must generate a challan using Form GST PMT-06. This challan remains valid for 15 days and requires details of the amounts being deposited for various liabilities. Deposits to the electronic cash ledger can be made via debit card, credit card, net banking, or Over-the-Counter (OTC) payments. However, OTC payments are restricted to single challan values below Rs 10,000.
Exceptions to OTC Payment Limits
The Rs 10,000 limit for Over-the-Counter (OTC) payments does not apply to the following categories of individuals or entities: - Government departments or any other persons specifically notified by the Commissioner for making deposits. - Proper officers or authorized officials involved in recovering outstanding dues from registered or unregistered persons, including recovery through the sale of assets. - Amounts collected by a proper officer in cash, cheque, or demand draft during investigation or enforcement activities.
Funds deducted under TDS, TCS, Reverse Charge Mechanism, and the composition scheme are debited from the electronic cash ledger and correspondingly credited to the electronic tax liability register.