GST
Moving cash balance to another GSTIN of the same PAN
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Facts
Sec 49(10) was amended to allow transfer of cash ledger balance to a distinct person, that is another GSTIN with the same PAN, through PMT-09. Credit ledger balance cannot be moved this way.
Provisions and law
- Sec 49(10), CGST Act 2017Cash ledger amount may be transferred to the cash ledger of a distinct person, as prescribed
- Rule 87, CGST Rules 2017Electronic cash ledger in PMT-05, challan PMT-06 valid for 15 days, payment modes, CIN, PMT-07 for failed credits and PMT-09 transfers
Analysis
Example: the Delhi GSTIN has Rs 1 lakh spare cash under IGST and the Haryana GSTIN needs Rs 1 lakh IGST. A transfer through PMT-09 may be possible, subject to the conditions, such as no unpaid demand in the transferring GSTIN. Check the portal and the current rule before relying on this, as conditions apply.
Conclusion
- Check the cash ledger balance in the source GSTIN
- Check there are no pending dues in the source GSTIN
- File PMT-09 selecting transfer to a distinct person
- Confirm credit in the target GSTIN's cash ledger
A Savvy can do this for you
GST payment challan, PMT-06
₹999
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