GST
Paying the appeal pre-deposit from the credit ledger
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Facts
The pre-deposit for tax is debited on the portal at the time of filing APL-01. CBIC has clarified that the credit ledger can be used for the tax part of the pre-deposit, as it is a payment of output tax. Interest and penalty, where payable, go from the cash ledger.
Provisions and law
- Sec 49, CGST Act 2017Payment of tax through the electronic cash and credit ledgers
- Sec 107(6), CGST Act 2017Pre-deposit of admitted dues plus 10 percent of disputed tax, capped at ₹20 crore
Analysis
If your credit ledger has ₹3,00,000 and the tax pre-deposit is ₹1,20,000, you may debit it from credit and save cash. Check the current circular before relying on it, and check the head-wise balances, since IGST, CGST and SGST each need their own amounts.
Conclusion
- Compute pre-deposit by head
- Check credit and cash ledger balances by head
- Choose the ledger in the APL-01 payment step
- Save the debit entry reference
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