Ch 24 - Payment of Taxes by Cash and through Input Tax Credit | GST Saral by CA Dhruv Aggarwal PDF Download

 Page 1


CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER 24 - Payment  of taxes by cash and through i nput tax credi t 
 
 
 
 
 
CHAPTER 24 
 
Payment of taxes by cash and through input  tax credit 
 
24.1 Electronic payment of tax, interest, penalty  and other amounts 
 
Every deposit made towards tax, interest, penalty, fee or any other amount by a taxable person by internet 
banking or by using credit/debit cards or National Electronic Fund Transfer [NEFT] or Real Time Gross 
Settlement  [RTGS]  or  by such other  mode  and  subject  to  such conditions  and  restrictions  as  may be 
prescribed. The payment shall be credited to the electronic cash ledger of such person. - section 49(1) of 
CGST Act. 
"Electronic cash ledger" means the electronic cash ledger referred to in section 49(1) of CGST Act - section 
2(43) of CGST Act. 
 
Rounding  off of tax etc. - The amount of tax, interest, penalty, fine or any other sum payable, and the 
amount of refund or any other sum due, under the provisions of the Act shall be rounded off to the nearest 
rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise then, if such part 
is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise it shall be ignored 
- section 170 of CGST Act. 
 
Note that rounding of tax shown in each i nvoice is not required to be rounded off. Only consolidated payment 
to Government has to be rounded off. 
Credit of ITC to Electronic  Credit Ledger - The input tax credit as self-assessed in the return of a taxable 
person shall be credited to his electronic credit ledger - section 49(2) of CGST Act. 
"Electronic credit ledger" means the electronic credit ledger referred to in section 49(2) - section 2(46) of 
CGST Act. 
 
24.1-1 Identification number for each transaction 
 
A unique identification number shall be generated  at the Common Portal for each debit or credit to the 
electronic cash or credit ledger, as the case may be - Rule 4(1) of Payment Rules. 
The unique identification number relating to discharge of any liability shall be indicated in the corresponding 
entry in the electronic tax liability register - Rule 4(2) of Payment Rules. 
A unique identification number shall be generated at the Common Portal for each credit in the electronic tax 
liability register for reasons other than those covered under sub-rule 4(2) - Rule 4(3) of Payment Rules. 
24.2 Utilisation of amount in electronic cash ledger 
 
The amount available in the electronic cash ledger may be used for making any payment towards tax, interest, 
penalty, fees or any other amount payable under the provisions of CGST Act or the rules made thereunder in 
such manner and subject to such conditions and within such time as may be prescribed. - section 49(3) of 
CGST Act. 
Page 2


CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER 24 - Payment  of taxes by cash and through i nput tax credi t 
 
 
 
 
 
CHAPTER 24 
 
Payment of taxes by cash and through input  tax credit 
 
24.1 Electronic payment of tax, interest, penalty  and other amounts 
 
Every deposit made towards tax, interest, penalty, fee or any other amount by a taxable person by internet 
banking or by using credit/debit cards or National Electronic Fund Transfer [NEFT] or Real Time Gross 
Settlement  [RTGS]  or  by such other  mode  and  subject  to  such conditions  and  restrictions  as  may be 
prescribed. The payment shall be credited to the electronic cash ledger of such person. - section 49(1) of 
CGST Act. 
"Electronic cash ledger" means the electronic cash ledger referred to in section 49(1) of CGST Act - section 
2(43) of CGST Act. 
 
Rounding  off of tax etc. - The amount of tax, interest, penalty, fine or any other sum payable, and the 
amount of refund or any other sum due, under the provisions of the Act shall be rounded off to the nearest 
rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise then, if such part 
is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise it shall be ignored 
- section 170 of CGST Act. 
 
Note that rounding of tax shown in each i nvoice is not required to be rounded off. Only consolidated payment 
to Government has to be rounded off. 
Credit of ITC to Electronic  Credit Ledger - The input tax credit as self-assessed in the return of a taxable 
person shall be credited to his electronic credit ledger - section 49(2) of CGST Act. 
"Electronic credit ledger" means the electronic credit ledger referred to in section 49(2) - section 2(46) of 
CGST Act. 
 
24.1-1 Identification number for each transaction 
 
A unique identification number shall be generated  at the Common Portal for each debit or credit to the 
electronic cash or credit ledger, as the case may be - Rule 4(1) of Payment Rules. 
The unique identification number relating to discharge of any liability shall be indicated in the corresponding 
entry in the electronic tax liability register - Rule 4(2) of Payment Rules. 
A unique identification number shall be generated at the Common Portal for each credit in the electronic tax 
liability register for reasons other than those covered under sub-rule 4(2) - Rule 4(3) of Payment Rules. 
24.2 Utilisation of amount in electronic cash ledger 
 
The amount available in the electronic cash ledger may be used for making any payment towards tax, interest, 
penalty, fees or any other amount payable under the provisions of CGST Act or the rules made thereunder in 
such manner and subject to such conditions and within such time as may be prescribed. - section 49(3) of 
CGST Act. 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
24.2-1 Maintenance of Electronic Cash Ledger 
 
The electronic cash ledger under section 49(1) shall be maintained in form GST PMT-05 for each person, 
liable to pay tax, interest, penalty, late fee or any other amount, on the Common Portal for crediting the 
amount deposited and debiting the payment therefrom towards tax, interest, penalty, fee or any other amount - 
Rule 3(1)of Payment Rules. 
24.2-2 Generation of challan for payment of tax, interest, penalty  or fee 
 
Any person, or a person on his behalf, shall generate a challan in form GST PMT-06 on the Common Portal 
and enter the details of the amount to be deposited by him towards tax, interest, penalty, fees or any other 
amount - Rule 3(2) of Payment Rules. 
The deposit under rule 3(2) shall be made through any of the fo lowing modes - (i) Internet Banking through 
authorized banks ( i) Credit card or Debit card through the authorised bank ( i) National Electronic Fund 
Transfer (NEFT) or Real Time Gross Settlement (RTGS) from any bank (iv) Over the Counter payment 
(OTC) through authorized banks for deposits up to ten thousand rupees per challan per tax period, by cash, 
cheque or demand draft - Rule 3(3) of Payment Rules. 
24.2-3 Over the Counter payment to Bank 
 
Over the Counter payment (OTC) can be made through authorized banks for deposits up to ten thousand 
rupees per challan per tax period, by cash, cheque or demand draft. 
The restriction for deposit up to ten thousand rupees per challan in case of an Over the Counter (OTC) 
payment shall not apply to deposit to be made by - (a) Government Departments or any other deposit to be 
made by persons as may be notified by the Commissioner in this behalf (b) Proper officer or any other officer 
authorised to recover outstanding dues from any person, whether registered or not, including recovery made 
through attachment  or sale  of movable  or immovable  properties  (c) Proper  officer  or any other  officer 
authorized for the amounts co lected by way of cash, cheque or demand draft during any investigation or 
enforcement activity or any ad hoc deposit - first proviso to Rule 3(3) of Payment Rules. 
The challan in form GST PMT-06 generated at the Common Portal shall be valid for a period of fifteen days. 
For making payment of any amount indicated in the challan, the commission, if any, payable in respect of such 
payment shall be borne by the person making such payment. 
 
Any payment required to be made by a person who is not registered under the Act, shall be made on the basis 
of a temporary identification number generated through the Common Portal - Rule 3(4) of Payment Rules. 
24.2-4 Mandate when payment made  by NEFT or RTGS 
 
Where the payment is made by way of NEFT or RTGS mode from any bank, the mandate form shall be 
generated along with the challan on the Common Portal and the same shall be submitted to the bank from 
where the payment is to be made - Rule 3(5) of Payment Rules. 
The mandate form shall be valid for a period of fifteen days from the date of generation of 
challan. 
 
Generation of CIN  on  successful  payment  -  On successful  credit  of the  amount  to  the  concerned 
government  account  maintained  in the  authorised  bank,  a  Challan Identification  Number  (CIN)  will 
be generated by the co lecting Bank and the same shall be indicated in the challan - Rule 3(6) of Payment 
Rules. 
On receipt of CIN from the authorized Bank, the said amount shall be credited to the electronic cash ledger of 
the person on whose behalf the deposit has been made and the Common Portal shall make available a receipt 
to this effect - Rule 3(7) of Payment Rules. 
Page 3


CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER 24 - Payment  of taxes by cash and through i nput tax credi t 
 
 
 
 
 
CHAPTER 24 
 
Payment of taxes by cash and through input  tax credit 
 
24.1 Electronic payment of tax, interest, penalty  and other amounts 
 
Every deposit made towards tax, interest, penalty, fee or any other amount by a taxable person by internet 
banking or by using credit/debit cards or National Electronic Fund Transfer [NEFT] or Real Time Gross 
Settlement  [RTGS]  or  by such other  mode  and  subject  to  such conditions  and  restrictions  as  may be 
prescribed. The payment shall be credited to the electronic cash ledger of such person. - section 49(1) of 
CGST Act. 
"Electronic cash ledger" means the electronic cash ledger referred to in section 49(1) of CGST Act - section 
2(43) of CGST Act. 
 
Rounding  off of tax etc. - The amount of tax, interest, penalty, fine or any other sum payable, and the 
amount of refund or any other sum due, under the provisions of the Act shall be rounded off to the nearest 
rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise then, if such part 
is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise it shall be ignored 
- section 170 of CGST Act. 
 
Note that rounding of tax shown in each i nvoice is not required to be rounded off. Only consolidated payment 
to Government has to be rounded off. 
Credit of ITC to Electronic  Credit Ledger - The input tax credit as self-assessed in the return of a taxable 
person shall be credited to his electronic credit ledger - section 49(2) of CGST Act. 
"Electronic credit ledger" means the electronic credit ledger referred to in section 49(2) - section 2(46) of 
CGST Act. 
 
24.1-1 Identification number for each transaction 
 
A unique identification number shall be generated  at the Common Portal for each debit or credit to the 
electronic cash or credit ledger, as the case may be - Rule 4(1) of Payment Rules. 
The unique identification number relating to discharge of any liability shall be indicated in the corresponding 
entry in the electronic tax liability register - Rule 4(2) of Payment Rules. 
A unique identification number shall be generated at the Common Portal for each credit in the electronic tax 
liability register for reasons other than those covered under sub-rule 4(2) - Rule 4(3) of Payment Rules. 
24.2 Utilisation of amount in electronic cash ledger 
 
The amount available in the electronic cash ledger may be used for making any payment towards tax, interest, 
penalty, fees or any other amount payable under the provisions of CGST Act or the rules made thereunder in 
such manner and subject to such conditions and within such time as may be prescribed. - section 49(3) of 
CGST Act. 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
24.2-1 Maintenance of Electronic Cash Ledger 
 
The electronic cash ledger under section 49(1) shall be maintained in form GST PMT-05 for each person, 
liable to pay tax, interest, penalty, late fee or any other amount, on the Common Portal for crediting the 
amount deposited and debiting the payment therefrom towards tax, interest, penalty, fee or any other amount - 
Rule 3(1)of Payment Rules. 
24.2-2 Generation of challan for payment of tax, interest, penalty  or fee 
 
Any person, or a person on his behalf, shall generate a challan in form GST PMT-06 on the Common Portal 
and enter the details of the amount to be deposited by him towards tax, interest, penalty, fees or any other 
amount - Rule 3(2) of Payment Rules. 
The deposit under rule 3(2) shall be made through any of the fo lowing modes - (i) Internet Banking through 
authorized banks ( i) Credit card or Debit card through the authorised bank ( i) National Electronic Fund 
Transfer (NEFT) or Real Time Gross Settlement (RTGS) from any bank (iv) Over the Counter payment 
(OTC) through authorized banks for deposits up to ten thousand rupees per challan per tax period, by cash, 
cheque or demand draft - Rule 3(3) of Payment Rules. 
24.2-3 Over the Counter payment to Bank 
 
Over the Counter payment (OTC) can be made through authorized banks for deposits up to ten thousand 
rupees per challan per tax period, by cash, cheque or demand draft. 
The restriction for deposit up to ten thousand rupees per challan in case of an Over the Counter (OTC) 
payment shall not apply to deposit to be made by - (a) Government Departments or any other deposit to be 
made by persons as may be notified by the Commissioner in this behalf (b) Proper officer or any other officer 
authorised to recover outstanding dues from any person, whether registered or not, including recovery made 
through attachment  or sale  of movable  or immovable  properties  (c) Proper  officer  or any other  officer 
authorized for the amounts co lected by way of cash, cheque or demand draft during any investigation or 
enforcement activity or any ad hoc deposit - first proviso to Rule 3(3) of Payment Rules. 
The challan in form GST PMT-06 generated at the Common Portal shall be valid for a period of fifteen days. 
For making payment of any amount indicated in the challan, the commission, if any, payable in respect of such 
payment shall be borne by the person making such payment. 
 
Any payment required to be made by a person who is not registered under the Act, shall be made on the basis 
of a temporary identification number generated through the Common Portal - Rule 3(4) of Payment Rules. 
24.2-4 Mandate when payment made  by NEFT or RTGS 
 
Where the payment is made by way of NEFT or RTGS mode from any bank, the mandate form shall be 
generated along with the challan on the Common Portal and the same shall be submitted to the bank from 
where the payment is to be made - Rule 3(5) of Payment Rules. 
The mandate form shall be valid for a period of fifteen days from the date of generation of 
challan. 
 
Generation of CIN  on  successful  payment  -  On successful  credit  of the  amount  to  the  concerned 
government  account  maintained  in the  authorised  bank,  a  Challan Identification  Number  (CIN)  will 
be generated by the co lecting Bank and the same shall be indicated in the challan - Rule 3(6) of Payment 
Rules. 
On receipt of CIN from the authorized Bank, the said amount shall be credited to the electronic cash ledger of 
the person on whose behalf the deposit has been made and the Common Portal shall make available a receipt 
to this effect - Rule 3(7) of Payment Rules. 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
24.2-5 Intimation when CIN not generated 
Page 4


CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER 24 - Payment  of taxes by cash and through i nput tax credi t 
 
 
 
 
 
CHAPTER 24 
 
Payment of taxes by cash and through input  tax credit 
 
24.1 Electronic payment of tax, interest, penalty  and other amounts 
 
Every deposit made towards tax, interest, penalty, fee or any other amount by a taxable person by internet 
banking or by using credit/debit cards or National Electronic Fund Transfer [NEFT] or Real Time Gross 
Settlement  [RTGS]  or  by such other  mode  and  subject  to  such conditions  and  restrictions  as  may be 
prescribed. The payment shall be credited to the electronic cash ledger of such person. - section 49(1) of 
CGST Act. 
"Electronic cash ledger" means the electronic cash ledger referred to in section 49(1) of CGST Act - section 
2(43) of CGST Act. 
 
Rounding  off of tax etc. - The amount of tax, interest, penalty, fine or any other sum payable, and the 
amount of refund or any other sum due, under the provisions of the Act shall be rounded off to the nearest 
rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise then, if such part 
is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise it shall be ignored 
- section 170 of CGST Act. 
 
Note that rounding of tax shown in each i nvoice is not required to be rounded off. Only consolidated payment 
to Government has to be rounded off. 
Credit of ITC to Electronic  Credit Ledger - The input tax credit as self-assessed in the return of a taxable 
person shall be credited to his electronic credit ledger - section 49(2) of CGST Act. 
"Electronic credit ledger" means the electronic credit ledger referred to in section 49(2) - section 2(46) of 
CGST Act. 
 
24.1-1 Identification number for each transaction 
 
A unique identification number shall be generated  at the Common Portal for each debit or credit to the 
electronic cash or credit ledger, as the case may be - Rule 4(1) of Payment Rules. 
The unique identification number relating to discharge of any liability shall be indicated in the corresponding 
entry in the electronic tax liability register - Rule 4(2) of Payment Rules. 
A unique identification number shall be generated at the Common Portal for each credit in the electronic tax 
liability register for reasons other than those covered under sub-rule 4(2) - Rule 4(3) of Payment Rules. 
24.2 Utilisation of amount in electronic cash ledger 
 
The amount available in the electronic cash ledger may be used for making any payment towards tax, interest, 
penalty, fees or any other amount payable under the provisions of CGST Act or the rules made thereunder in 
such manner and subject to such conditions and within such time as may be prescribed. - section 49(3) of 
CGST Act. 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
24.2-1 Maintenance of Electronic Cash Ledger 
 
The electronic cash ledger under section 49(1) shall be maintained in form GST PMT-05 for each person, 
liable to pay tax, interest, penalty, late fee or any other amount, on the Common Portal for crediting the 
amount deposited and debiting the payment therefrom towards tax, interest, penalty, fee or any other amount - 
Rule 3(1)of Payment Rules. 
24.2-2 Generation of challan for payment of tax, interest, penalty  or fee 
 
Any person, or a person on his behalf, shall generate a challan in form GST PMT-06 on the Common Portal 
and enter the details of the amount to be deposited by him towards tax, interest, penalty, fees or any other 
amount - Rule 3(2) of Payment Rules. 
The deposit under rule 3(2) shall be made through any of the fo lowing modes - (i) Internet Banking through 
authorized banks ( i) Credit card or Debit card through the authorised bank ( i) National Electronic Fund 
Transfer (NEFT) or Real Time Gross Settlement (RTGS) from any bank (iv) Over the Counter payment 
(OTC) through authorized banks for deposits up to ten thousand rupees per challan per tax period, by cash, 
cheque or demand draft - Rule 3(3) of Payment Rules. 
24.2-3 Over the Counter payment to Bank 
 
Over the Counter payment (OTC) can be made through authorized banks for deposits up to ten thousand 
rupees per challan per tax period, by cash, cheque or demand draft. 
The restriction for deposit up to ten thousand rupees per challan in case of an Over the Counter (OTC) 
payment shall not apply to deposit to be made by - (a) Government Departments or any other deposit to be 
made by persons as may be notified by the Commissioner in this behalf (b) Proper officer or any other officer 
authorised to recover outstanding dues from any person, whether registered or not, including recovery made 
through attachment  or sale  of movable  or immovable  properties  (c) Proper  officer  or any other  officer 
authorized for the amounts co lected by way of cash, cheque or demand draft during any investigation or 
enforcement activity or any ad hoc deposit - first proviso to Rule 3(3) of Payment Rules. 
The challan in form GST PMT-06 generated at the Common Portal shall be valid for a period of fifteen days. 
For making payment of any amount indicated in the challan, the commission, if any, payable in respect of such 
payment shall be borne by the person making such payment. 
 
Any payment required to be made by a person who is not registered under the Act, shall be made on the basis 
of a temporary identification number generated through the Common Portal - Rule 3(4) of Payment Rules. 
24.2-4 Mandate when payment made  by NEFT or RTGS 
 
Where the payment is made by way of NEFT or RTGS mode from any bank, the mandate form shall be 
generated along with the challan on the Common Portal and the same shall be submitted to the bank from 
where the payment is to be made - Rule 3(5) of Payment Rules. 
The mandate form shall be valid for a period of fifteen days from the date of generation of 
challan. 
 
Generation of CIN  on  successful  payment  -  On successful  credit  of the  amount  to  the  concerned 
government  account  maintained  in the  authorised  bank,  a  Challan Identification  Number  (CIN)  will 
be generated by the co lecting Bank and the same shall be indicated in the challan - Rule 3(6) of Payment 
Rules. 
On receipt of CIN from the authorized Bank, the said amount shall be credited to the electronic cash ledger of 
the person on whose behalf the deposit has been made and the Common Portal shall make available a receipt 
to this effect - Rule 3(7) of Payment Rules. 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
24.2-5 Intimation when CIN not generated 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
Where the bank account of the person concerned, or the person making the deposit on his behalf, is debited 
but no Challan Identification Number (CIN) is generated or generated but not communicated to the Common 
Portal, the said person may represent electronica ly in form GST PMT-07 through the Common Portal to the 
Bank or electronic gateway through which the deposit was initiated - Rule 3(8) of Payment Rules. 
24.2-6 Credit of TDS or TCS 
 
Any amount deducted under section 51 or co lected under section 52 and claimed in form GSTR-02 by the 
registered taxable person from whom the said amount was deducted or, as the case may be, co lected shall be 
credited  to his electronic  cash ledger in accordance  with the provisions  of Return rule 2 -  Rule 3(9) of 
Payment Rules. 
24.2-7 Debit to Electronic Cash Ledger if refund claimed 
 
Where a person has claimed refund of any amount from the electronic cash ledger, the said amount shall be 
debited to the electronic cash ledger - Rule 3(10) of Payment Rules. 
If the refund so claimed is rejected, either fully  or partly, the amount debited under rule 3(10), to the extent of 
rejection, shall be credited to the electronic cash ledger by the proper officer by an order made in form GST 
PMT-03 - Rule 3(11) of Payment Rules. 
A refund shall be deemed to be rejected if the appeal is finally rejected or if the claimant gives an undertaking 
to the proper officer that he shall not f ile an appeal - Explanation to Rule 3 of Payment Rules. 
24.3 Utilisation of amount in electronic credit ledger 
 
The amount available in the electronic credit ledger may be used for making any payment towards output tax 
under the provisions of the Act or the rules made thereunder in prescribed manner - section 49(4) of CGST 
Act. 
"Output tax" in relation to a taxable person, means the tax chargeable under this Act on taxable supply of 
goods or services or both made by him or by his agent but excludes tax payable by him on reverse charge 
basis - section 2(82) of CGST Act. 
Thus, amount in electronic credit ledger cannot be used for payment of interest, penalty or fees. It also cannot 
be used where GST is payable under reverse charge basis. 
Credit of IGST for payment of IGST, CGST and SGST/UTGST in that  order - The amount of input 
tax credit on account of IGST available in the electronic credit ledger shall first be utilized towards payment of 
IGST and the amount remaining, if any, may be utilized towards the payment of CGST and SGST/UTGST, in 
that order - - section 49(5)(a) of CGST Act. 
Credit of CGST for CGST and balance  for IGST - The amount of input tax credit on account of CGST 
available  in the electronic  credit ledger shall first be utilized  towards  payment of CGST and the amount 
remaining, if any, may be utilized towards the payment of IGST - section 49(5)(b) of CGST Act. 
The input tax credit on account of CGST shall not be utilized towards payment of SGST/UTGST. 
 
Credit of SGST/UTGST first for SGST/UTGST and balance  for IGST - The amount of input tax credit 
on account of SGST/UTGST available in the electronic credit ledger shall first be utilized towards payment of 
SGST/UTGST and the amount remaining, if any, may be utilized towards the payment of IGST - section 49(5) 
(c) of CGST Act. 
The input tax credit on account of SGST/UTGST shall not be utilized towards payment of CGST. 
 
24.3-1 Maintenance of Electronic Credit Ledger 
 
The electronic credit ledger shall be maintained in form GST PMT-02 for each registered person eligible for 
Page 5


CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER 24 - Payment  of taxes by cash and through i nput tax credi t 
 
 
 
 
 
CHAPTER 24 
 
Payment of taxes by cash and through input  tax credit 
 
24.1 Electronic payment of tax, interest, penalty  and other amounts 
 
Every deposit made towards tax, interest, penalty, fee or any other amount by a taxable person by internet 
banking or by using credit/debit cards or National Electronic Fund Transfer [NEFT] or Real Time Gross 
Settlement  [RTGS]  or  by such other  mode  and  subject  to  such conditions  and  restrictions  as  may be 
prescribed. The payment shall be credited to the electronic cash ledger of such person. - section 49(1) of 
CGST Act. 
"Electronic cash ledger" means the electronic cash ledger referred to in section 49(1) of CGST Act - section 
2(43) of CGST Act. 
 
Rounding  off of tax etc. - The amount of tax, interest, penalty, fine or any other sum payable, and the 
amount of refund or any other sum due, under the provisions of the Act shall be rounded off to the nearest 
rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise then, if such part 
is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise it shall be ignored 
- section 170 of CGST Act. 
 
Note that rounding of tax shown in each i nvoice is not required to be rounded off. Only consolidated payment 
to Government has to be rounded off. 
Credit of ITC to Electronic  Credit Ledger - The input tax credit as self-assessed in the return of a taxable 
person shall be credited to his electronic credit ledger - section 49(2) of CGST Act. 
"Electronic credit ledger" means the electronic credit ledger referred to in section 49(2) - section 2(46) of 
CGST Act. 
 
24.1-1 Identification number for each transaction 
 
A unique identification number shall be generated  at the Common Portal for each debit or credit to the 
electronic cash or credit ledger, as the case may be - Rule 4(1) of Payment Rules. 
The unique identification number relating to discharge of any liability shall be indicated in the corresponding 
entry in the electronic tax liability register - Rule 4(2) of Payment Rules. 
A unique identification number shall be generated at the Common Portal for each credit in the electronic tax 
liability register for reasons other than those covered under sub-rule 4(2) - Rule 4(3) of Payment Rules. 
24.2 Utilisation of amount in electronic cash ledger 
 
The amount available in the electronic cash ledger may be used for making any payment towards tax, interest, 
penalty, fees or any other amount payable under the provisions of CGST Act or the rules made thereunder in 
such manner and subject to such conditions and within such time as may be prescribed. - section 49(3) of 
CGST Act. 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
24.2-1 Maintenance of Electronic Cash Ledger 
 
The electronic cash ledger under section 49(1) shall be maintained in form GST PMT-05 for each person, 
liable to pay tax, interest, penalty, late fee or any other amount, on the Common Portal for crediting the 
amount deposited and debiting the payment therefrom towards tax, interest, penalty, fee or any other amount - 
Rule 3(1)of Payment Rules. 
24.2-2 Generation of challan for payment of tax, interest, penalty  or fee 
 
Any person, or a person on his behalf, shall generate a challan in form GST PMT-06 on the Common Portal 
and enter the details of the amount to be deposited by him towards tax, interest, penalty, fees or any other 
amount - Rule 3(2) of Payment Rules. 
The deposit under rule 3(2) shall be made through any of the fo lowing modes - (i) Internet Banking through 
authorized banks ( i) Credit card or Debit card through the authorised bank ( i) National Electronic Fund 
Transfer (NEFT) or Real Time Gross Settlement (RTGS) from any bank (iv) Over the Counter payment 
(OTC) through authorized banks for deposits up to ten thousand rupees per challan per tax period, by cash, 
cheque or demand draft - Rule 3(3) of Payment Rules. 
24.2-3 Over the Counter payment to Bank 
 
Over the Counter payment (OTC) can be made through authorized banks for deposits up to ten thousand 
rupees per challan per tax period, by cash, cheque or demand draft. 
The restriction for deposit up to ten thousand rupees per challan in case of an Over the Counter (OTC) 
payment shall not apply to deposit to be made by - (a) Government Departments or any other deposit to be 
made by persons as may be notified by the Commissioner in this behalf (b) Proper officer or any other officer 
authorised to recover outstanding dues from any person, whether registered or not, including recovery made 
through attachment  or sale  of movable  or immovable  properties  (c) Proper  officer  or any other  officer 
authorized for the amounts co lected by way of cash, cheque or demand draft during any investigation or 
enforcement activity or any ad hoc deposit - first proviso to Rule 3(3) of Payment Rules. 
The challan in form GST PMT-06 generated at the Common Portal shall be valid for a period of fifteen days. 
For making payment of any amount indicated in the challan, the commission, if any, payable in respect of such 
payment shall be borne by the person making such payment. 
 
Any payment required to be made by a person who is not registered under the Act, shall be made on the basis 
of a temporary identification number generated through the Common Portal - Rule 3(4) of Payment Rules. 
24.2-4 Mandate when payment made  by NEFT or RTGS 
 
Where the payment is made by way of NEFT or RTGS mode from any bank, the mandate form shall be 
generated along with the challan on the Common Portal and the same shall be submitted to the bank from 
where the payment is to be made - Rule 3(5) of Payment Rules. 
The mandate form shall be valid for a period of fifteen days from the date of generation of 
challan. 
 
Generation of CIN  on  successful  payment  -  On successful  credit  of the  amount  to  the  concerned 
government  account  maintained  in the  authorised  bank,  a  Challan Identification  Number  (CIN)  will 
be generated by the co lecting Bank and the same shall be indicated in the challan - Rule 3(6) of Payment 
Rules. 
On receipt of CIN from the authorized Bank, the said amount shall be credited to the electronic cash ledger of 
the person on whose behalf the deposit has been made and the Common Portal shall make available a receipt 
to this effect - Rule 3(7) of Payment Rules. 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
24.2-5 Intimation when CIN not generated 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
Where the bank account of the person concerned, or the person making the deposit on his behalf, is debited 
but no Challan Identification Number (CIN) is generated or generated but not communicated to the Common 
Portal, the said person may represent electronica ly in form GST PMT-07 through the Common Portal to the 
Bank or electronic gateway through which the deposit was initiated - Rule 3(8) of Payment Rules. 
24.2-6 Credit of TDS or TCS 
 
Any amount deducted under section 51 or co lected under section 52 and claimed in form GSTR-02 by the 
registered taxable person from whom the said amount was deducted or, as the case may be, co lected shall be 
credited  to his electronic  cash ledger in accordance  with the provisions  of Return rule 2 -  Rule 3(9) of 
Payment Rules. 
24.2-7 Debit to Electronic Cash Ledger if refund claimed 
 
Where a person has claimed refund of any amount from the electronic cash ledger, the said amount shall be 
debited to the electronic cash ledger - Rule 3(10) of Payment Rules. 
If the refund so claimed is rejected, either fully  or partly, the amount debited under rule 3(10), to the extent of 
rejection, shall be credited to the electronic cash ledger by the proper officer by an order made in form GST 
PMT-03 - Rule 3(11) of Payment Rules. 
A refund shall be deemed to be rejected if the appeal is finally rejected or if the claimant gives an undertaking 
to the proper officer that he shall not f ile an appeal - Explanation to Rule 3 of Payment Rules. 
24.3 Utilisation of amount in electronic credit ledger 
 
The amount available in the electronic credit ledger may be used for making any payment towards output tax 
under the provisions of the Act or the rules made thereunder in prescribed manner - section 49(4) of CGST 
Act. 
"Output tax" in relation to a taxable person, means the tax chargeable under this Act on taxable supply of 
goods or services or both made by him or by his agent but excludes tax payable by him on reverse charge 
basis - section 2(82) of CGST Act. 
Thus, amount in electronic credit ledger cannot be used for payment of interest, penalty or fees. It also cannot 
be used where GST is payable under reverse charge basis. 
Credit of IGST for payment of IGST, CGST and SGST/UTGST in that  order - The amount of input 
tax credit on account of IGST available in the electronic credit ledger shall first be utilized towards payment of 
IGST and the amount remaining, if any, may be utilized towards the payment of CGST and SGST/UTGST, in 
that order - - section 49(5)(a) of CGST Act. 
Credit of CGST for CGST and balance  for IGST - The amount of input tax credit on account of CGST 
available  in the electronic  credit ledger shall first be utilized  towards  payment of CGST and the amount 
remaining, if any, may be utilized towards the payment of IGST - section 49(5)(b) of CGST Act. 
The input tax credit on account of CGST shall not be utilized towards payment of SGST/UTGST. 
 
Credit of SGST/UTGST first for SGST/UTGST and balance  for IGST - The amount of input tax credit 
on account of SGST/UTGST available in the electronic credit ledger shall first be utilized towards payment of 
SGST/UTGST and the amount remaining, if any, may be utilized towards the payment of IGST - section 49(5) 
(c) of CGST Act. 
The input tax credit on account of SGST/UTGST shall not be utilized towards payment of CGST. 
 
24.3-1 Maintenance of Electronic Credit Ledger 
 
The electronic credit ledger shall be maintained in form GST PMT-02 for each registered person eligible for 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
input tax credit under the Act on the Common Portal and every claim of input tax credit under the Act shall be 
credited to the said Ledger - Rule 2(1) of Payment Rules. 
24.3-2 Debits to Electronic Credit Ledger 
 
The electronic credit ledger shall be debited to the extent of discharge of any liability in accordance  with 
section 49 of CGST Act - Rule 2(2) of Payment Rules. 
Debit to Electronic  Credit Ledger if refund  of credit claimed under  section 54 - Where a registered 
person has claimed refund of any unutilized amount from the electronic credit ledger in accordance with the 
provisions of section 54, the amount to the extent of the claim shall be debited in the said ledger - Rule 2(3) of 
Payment Rules. 
Re-credit  if refund  claim is rejected - If the refund so f iled is rejected, either fully  or partly, the amount 
debited under rule 2(3), to the extent of rejection, shall be re-credited to the electronic credit ledger by the 
proper officer by an order made in form GST PMT-03 - Rule 2(4) of Payment Rules. 
For the purpose of this rule, a ref und shall be deemed to be rejected, if the appeal is finally rejected or if the 
claimant gives an undertaking to the proper officer that he shall not f ile an appeal - Explanation to Rule 2 of 
Payment Rules. 
No other debit or credit in Electronic  Credit Ledger - Save as provided in these rules, no entry shall be 
made directly in the electronic credit ledger under any circumstance - Rule 2(5) of Payment Rules. 
Intimation of discrepancy  to officer - A registered  person sha l, upon noticing any discrepancy in his 
electronic credit ledger, comm unicate the same to the officer exercising jurisdiction in the matter, through the 
Common Portal in form GST PMT-04 - Rule 2(6) of Payment Rules. 
24.4 Refund of balance  to credit of ledger 
 
The balance in the cash or credit ledger after payment of tax, interest, penalty, fee or any other amount 
payable under the Act or the rules made thereunder may be refunded in accordance with the provisions of 
section 54 of CGST Act - section 49(6) of CGST Act. 
24.5 Electronic Liability Register (ELR) for recording liability of a taxable  person 
 
A l liabilities of a taxable person under this Act shall be recorded and maintained  in an electronic liability 
register (ELR) as may be prescribed - section 49(7) of CGST Act. 
24.5-1 Form of Electronic Tax Liability Register 
 
The electronic tax liability register specified under section 49(7) shall be maintained in form GST PMT-01 for 
each person liable to pay tax, interest, penalty, late fee or any other amount on the Common Portal and a l 
amounts payable by him shall be debited to the said register - Rule of 1(1) Payment Rules. 
24.5-2 Amounts that will be debuted to Electronic Tax Liability Register 
 
The electronic tax liability register of the person shall be debited by:- (a) the amount payable towards tax, 
interest, late fee or any other amount payable as per the return furnished by the said person (b) the amount of 
tax, interest, penalty or any other amount payable as determined  by a proper officer in pursuance of any 
proceedings under the Act or as ascertained by the said person (c) the amount of tax and interest payable as a 
result of mismatch under section 42 or section 43 or section 50; or (d) any amount of interest that may accrue 
from time to time - Rule 1(2) of Payment Rules. 
Payment  of liability through  Electronic  Liability Register - Subject to the provisions of section 49, 
payment of every liability by a registered person as per his return shall be made by debiting the electronic 
credit ledger maintained as per rule 2 or the electronic cash ledger maintained as per rule 3 and the electronic