Understanding the Structure of GST PMT-05: Electronic Cash Ledger

Within the Goods and Services Tax (GST) framework, taxpayers can settle their liabilities using various methods, including net banking, debit cards, or over-the-counter transactions. All payments made through these channels are recorded in the Electronic Cash Ledger, designated as Form GST PMT-05. A payment challan, Form GST PMT-06, is also generated on the common portal for depositing GST. This article focuses on elucidating the specific format and transaction types relevant to the Electronic Cash Ledger (Form GST PMT-05).

Structure of Form GST PMT-05

The electronic cash ledger tracks both credits and debits. The following transaction categories would be reflected within it:

• Tax payments made via net banking or over-the-counter methods.
• Funds credited by the registered individual to their electronic cash ledger (Form GST PMT-05).
• Payments for penalties, interest, fees, or other outstanding obligations.
• Refunds received for any overpaid GST.

Illustrative Example of Ledger Entries

Consider an example where a company, 'Example Corp,' deposited INR 3,00,000 into its electronic cash ledger to cover tax liabilities. After generating a challan, it remitted INR 2,00,000 for regular tax. Additionally, the company incurred and paid INR 36,000 as interest for delayed tax payment. In a separate instance, Example Corp received a refund of INR 5,000 from the tax department due to an overpayment in the prior month.

The above transactions would be reflected in the electronic cash ledger in the following manner:

1. The initial deposit of INR 3,00,000 would appear as a credit in the electronic cash ledger (Form GST PMT-05), categorized under the "Others" minor head within both the "Amount Credited" and "Balance Available" major heads.
2. The INR 2,00,000 tax payment would be recorded under the "Tax" minor head within the "Amount Debited" and "Balance Available" major heads. The INR 36,000 interest payment for delayed remittance would similarly be displayed under the "Interest" minor head within "Amount Debited" and "Balance Available."
3. The INR 5,000 refund from the department would be reflected under the "Others" minor head.

Important Considerations for PMT-05

Several key points are important when reviewing or making entries in the electronic cash ledger:

• Reference numbers encompass elements such as the Bank Reference Number (BRN), debit entry number, any applicable order number, and the acknowledgment number of the return for TDS & TCS credits.
• The relevant tax period, if applicable to a debit, will be noted; otherwise, this field will remain empty.
• The Description field will include the GSTIN of the deductor or tax collector at source, the Challan Identification Number (CIN) associated with the deposit, and the specific type of liability being debited.
• Additional details in the Description field may include the application number (if any), Show Cause Notice number, Demand ID, pre-deposit for an appeal, or any other liability for which a payment is being made.
• Any refunds processed from the ledger or other debits against various liabilities will be duly recorded.
• The date and time of a deposit correspond to the date and time when the Challan Identification Number (CIN) was generated and reported by the bank.
• Key GST acronyms are defined as follows: 'CGST' refers to Central Goods and Services Tax; 'SGST' denotes State Goods and Services Tax; 'UTGST' indicates Union Territory Goods and Services Tax; 'IGST' represents Integrated Goods and Services Tax; and 'Cess' signifies Goods and Services Tax (Compensation to States).