GST
Checking cash, credit and liability ledgers
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Facts
The portal keeps an electronic cash ledger, an electronic credit ledger and an electronic liability register. The liability register Part II shows demands from orders. All three should be checked monthly.
Provisions and law
- Sec 49, CGST Act 2017Payment of tax through the electronic cash and credit ledgers
- Rule 87, CGST Rules 2017Electronic cash ledger, PMT-06 challan and PMT-07 for payment not credited
Analysis
An unexpected credit balance growing every month may signal under-reported sales or an inverted rate structure. A demand in the liability register you did not know about may come from an order you missed. Five minutes on the ledgers each month catches both.
Conclusion
- Open Services > Ledgers and view each ledger
- Check closing balances against your books
- Look for demands in the liability register
- Investigate unexpected changes
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