Types of GST Ledgers.

Types of GST Ledgers.

Here in this article, we discuss about different types of ledgers in GST maintained by GSTN.

GST Ledgers

Three different ledgers are maintained by the GSTN for tracking the payments, credits and liabilities of a person registered under GST.

1. Electronic Tax Liability Ledger

The liabilities of a taxpayer under GST are maintained in the electronic liability register. It contains tax due on filing a GST return, interest, penalty and demands.

2. Electronic Cash Ledger

Whenever the taxpayer makes a GST payment through online banking, credit or debit card, wire transfer or over the counter payment, the amount paid is reflected in the electronic cash ledger.

GST tax payment of over Rs.10,000 must be made through banking channels only. While making the GST payment, the taxpayer must provide the heads under which payments are to be credited, namely major heads of CGST, SGST, IGST and minor heads like tax, interest, penalty, fees and others. Based on the tax challan and heads under which payment was made, the electronic cash ledger will display the balance available under the various combinations of the major-minor head.

3. Electronic Credit Ledger

All the taxes paid by the taxpayer on the inputs would be recorded in the electronic credit ledger. Electronic credit ledger would be auto-populated based on the GSTR-1 and GSTR-2 returns filed by all taxpayers registered under GST.The credit in the electronic credit ledger can be used to offset GST liability in the following manner:

IGST Credit- After the IGST input tax credit is used for payment of IGST, the remaining input tax credit can be used to pay tax liability under CGST and at last SGST.

CGST Credit- The CGST input tax credit can be used to pay IGST liability. However, CGST credit cannot be used to setoff the SGST liability.

SGST Credit- SGST input tax credit cannot be used to pay the CGST liability but can be used to pay the liability under IGST

All the payments under GST have to be made by either using the input tax credit available in the electronic credit ledger or through the electronic cash ledger. A unique identification number shall be generated for each debit or credit to the electronic cash or credit ledger.

Interest on Delayed Payment

All taxable persons must first pay the taxes and other dues (includes interest, penalty, fee or any other amount payable) of previous tax periods and thereafter for the current tax period.

In case of delayed payment, interest will be levied at the rate of 18% per annum. In case of excess ITC claimed / excess reduction in output tax liability by taxpayer, interest will be charged at 24% per annum.