Electronic Credit Ledger under GST & its Conditions

What is GST Credit Ledger?

The three ledgers that GST employs are electronic cash ledger, electronic liability register and electronic credit ledger. These three helps in the process of levying and calculating taxes and in tracking GST Payments, liabilities (if any) and credits. You will notice on the common portal of GST that all three ledgers are accessible to each & every Taxpayer respectively and are maintained thoroughly. 

Credit for Input Tax Credit

All the persons registered under GST, except for the person registered under the composition scheme, are qualified to avail of the input tax credit on any goods or services claimed and used as input by the taxpayer for their respective businesses. The credit (amount) calculated for the input tax credit is attributed to the electronic credit ledger of the GST Registered taxpayer. 

Where to find the Electronic Credit ledger on GST Common Portal?

Below are a few steps to locate the Electronic Credit ledger on GST Portal

• The taxpayer has to login into the GST portal by entering their username and password
• On the portal beside “dashboard”, you will see the “services” tab to click
• In the “Services” tab you will have to select “Electronic Credit Ledger” Command
• The page will display panels for you to select a time period.
• Enter the dates in the “from” and “to” panel for a specific time period and click “Go”
• Click “Save” at last either with the “Save as PDF” option or “Save as Excel” Option.

     Conditions regarding the Electronic Credit Ledger:

below are some conditions regarding the Electronic Credit ledger:

• Form GST PMT-02 is required to maintain the Electronic Credit Ledger by the GST Registered person, who is eligible to avail of an input tax credit. 
• The taxpayer is also entitled to claim a refund anytime from any unutilized amount displayed in the Electronic cash ledger but the portal will immediately debit the amount of refund claimed in the electronic credit ledger.
• However, the appropriate GST Officer is entitled to reject, either fully or partially, the refund that has been claimed. In such a case, the amount that has been debited from the electronic credit ledger will be re-credited into it. The taxpayer would have to apply through Form GST PMT-03, to reclaim the debited amount, to the appropriate GST Officer.
• The taxpayer, under any circumstances, should not be making any direct entries in the electronic credit ledger.