Understanding the Structure and Details of Form GST PMT-02
This article clarifies the format and purpose of Form GST PMT-02, the electronic credit ledger, in the Indian GST system. It explains how registered taxpayers use this form to track their utilized and available Input Tax Credit, including provisional ITC details applicable until December 2021 and information on mismatches. The content also provides a practical example to illustrate how ITC is managed and adjusted within the ledger for various tax components.
Following our discussion on the electronic liability register (Form GST PMT-01), this article focuses on Form GST PMT-02, known as the electronic credit ledger. This form is crucial for managing a registered person's input tax credit (ITC) data.
Understanding Form GST PMT-02
Form GST PMT-02 includes essential identification and period details. These typically cover:
- GSTIN
- Legal Name
- Trade Name (if applicable)
- Reporting Period (From —– To —–)
- Applicable Act (CGST, SGST, UTGST, IGST, CESS, or All)
Taxpayers registered under GST can access their electronic credit ledger (Form GST PMT-02) through the common portal to view both utilized and available Input Tax Credit (ITC). This ledger also displays details regarding provisional ITC, which was applicable until December 31, 2021 (Learn more), and any ITC mismatches.
The electronic credit ledger outlines the tax period, the origin of ITC, and how it was utilized. It categorizes ITC amounts used for tax payments or input purchases under various heads, such as CGST, SGST, UTGST, IGST, and Cess, providing a total. The remaining available ITC is also presented under these specific heads.
Consider Philip Private Limited, a Chennai-based company with an initial IGST ITC balance of Rs. 2,00,000. Philip bought glass in Chennai for Rs. 1,00,000 (tax paid), generating Rs. 50,000 each in SGST and CGST ITC due to the intra-state purchase. Subsequently, Philip sold finished goods to Ultra Lighting Limited in Bangalore for Rs. 10,00,000, incurring an IGST liability of Rs. 1,80,000. Philip utilized Rs. 50,000 from its IGST ITC to partially offset this liability, paying the remainder via net banking. Consequently, the IGST head in the ledger is debited by Rs. 50,000, leaving available ITC balances of Rs. 50,000 for CGST, Rs. 50,000 for SGST, and Rs. 1,50,000 for IGST.
Provisional ITC Balances (Applicable Until December 31, 2021)
Registered GST individuals were permitted to claim provisional Input Tax Credit on inputs until December 31, 2021 (Find out more). The electronic credit ledger displays these provisional ITC amounts under distinct categories, including CGST, SGST, UTGST, IGST, and Cess, along with a total. Additionally, any ITC that could not be claimed due to discrepancies is recorded in the ledger for the relevant tax period, organized by the same tax heads under the 'mismatched ITC' section.