Transfer of Electronic Cash Ledger amount in intra-head or inter-head (Effecting the provisions of rule 87 (13) and FORM GST PMT-09 of the CGST Rules, 2017)

Before discussing about the transfer of Electronic Cash Ledger amount in intra-head or inter-head, first we need to know about Rule 87.


Electronic Cash Ledger (RULE 87):-

1) The electronic cash ledger 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.

2) For paying tax, interest, penalty, late fee or any other amount, challan need to be generate in FORM GST PMT-06. (Provided that the challan in FORM GST PMT-06 generated at the common portal shall be valid for a period of fifteen days.)

3) Deposite shall be made through any of the following modes,
(a) Internet Banking through authorised banks.
(b) Credit card or Debit card through the authorised bank.
(c) National Electronic Fund Transfer or Real Time Gross Settlement from any bank.
(d) Over the Counter payment through authorised banks.

4) 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.

5) Where the payment is made by way of NEFT, RTGS from any bank, the mandate form shall be generated along with the challan on the common portaland the same shall be submitted to the bank from where the payment is to be made. (Provided that the mandate form shall be valid for a period of fifteen days from the date of generation of challan.)

6) On successful credit of the amount to the concerned government account maintained in the authorised bank, a Challan Identification Number shall be generated by the collecting bank and the same shall be indicated in the challan.

7) On receipt of theChallan Identification Number from the collecting 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.

8) When payment has been deducted from bank but CIN is not generated then person may intimate through portal in FORM GST PMT-07.

9) Any amount deducted under section 51 or collected under section 52 and claimed by the registered taxable person from whom the said amount was deducted or, as the case may be, collected shall be credited to his electronic cash ledger.

10) 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.

11) If the refund so claimed is rejected, either fully or partly, the amount debited 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.

12) A registered person shall, upon noticing any discrepancy in his electronic cash ledger, communicate the same to the officer exercising jurisdiction in the matter, through the common portal in FORM GST PMT-04.

13) A registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under the Act to the electronic cash ledger for integrated tax, central tax, State tax or Union territory tax or cess in FORM GST PMT-09.


Introduction:-
Taxpayers deposit money using challan and the paid amount gets credited in the particular head in the Electronic Cash ledger and the same can be utilized in settling liabilities of that head only. In case a taxpayer deposited any amount under a major head i.e. IGST, CGST, SGST/UTGST and Cess or minor head i.e. Tax, Interest, Penalty, Fee and Others, they can then utilize this amount for discharging their liabilities only under that major head and minor head. Sometimes, inadvertently, the taxpayer pays the amount under the wrong head and it cannot be used to discharge the liabilities which may be due in another head. In such cases taxpayers can claim the refund of the amount which may have been deposited under wrong head in GST by filing a refund application in FORM RFD-01 under the category “Excess balance in electronic cash ledger”. The process of filing refund claim and its disbursement can sometimes lead to blockage of funds for the taxpayer.


Applicability:- 
The Central Government  vide Notification No.37/2020 ,dated 28th April, 2020 has appointed the 21st day of April, 2020, as the date from which  Rule 87(13) of the CGST Rules, 2017 ,which states that a registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under the Act to the electronic cash ledger for integrated tax, central tax, State tax or Union territory tax or cess in FORM GST PMT-09,& FORM GST PMT –09 shall come into force.


Process:-
Form GST PMT-09 is now available on GST portal and it enables a taxpayer to make intra-head or inter-head transfer of amount available in Electronic Cash Ledger. A taxpayer can file GST PMT 09 for transfer of any amount of tax, interest, penalty, fee or others available under one (major or minor) head to another (major or minor) head in the Electronic Cash Ledger. Form GST PMT 09 provides flexibility to taxpayers to make multiple transfers from more than one Major/Minor head to another Major/Minor head if the amount is available in the Electronic Cash Ledger. To file Form GST PMT-09 taxpayers are required to login on GST portal with valid credentials and navigate to Services > Ledgers > Electronic Cash Ledger > File GST PMT-09 For Transfer of Amount option. After Form GST PMT-09 is filed,

1) ARN is generated on successful filing of Form GST PMT-09.
2) An SMS and an email is sent to the taxpayer on his registered mobile and email id.
3) Electronic Cash ledger will get updated after successful filing of Form GST PMT-09.
4) Filed form GST PMT-09 will be available for view/download in PDF format.

Also refer relevant Notification No. 37/2020 CT Dt. 28.04.2020 & A detailed FAQ and User Manual to guide taxpayer on Form PMT-09.

Notification:-https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-37-central-tax-english-2020.pdf


A detailed FAQ and User Manual to guide taxpayer on Form PMT-09.:- https://tutorial.gst.gov.in/userguide/ledgers/index.htm#t=Manual_pmt09.htm