This article torches on the glaring confusion regarding the difference between electronic cash ledger and electronic credit ledger under GST.
The Electronic Cash Ledger and Electronic Credit Ledger under the Goods and Services Tax (GST) framework in India serve different purposes and are used for managing taxpayer liabilities and payments. Here’s a detailed comparison:
| Criteria | Electronic Cash | Electronic Credit Ledger |
| Definition | The Electronic Cash Ledger contains a summary of all the deposits/payments made by a taxpayer. In the ledger, information is kept minor head-wise for each major head. For convenience of user, the ledger is displayed major head-wise i.e., IGST, CGST, SGST/UTGST, and CESS. Each major head is divided into five minor heads: Tax, Interest, Penalty, Fee, and Others. | In the Electronic Credit Ledger, all credits accrued on account of inward supplies made by a taxpayer within a tax period are accumulated. The ledger is maintained Major Head-wise, i.e., IGST, CGST, SGST, and CESS. |
| Maintained By | Electronic Cash Ledger is an account of the taxpayer maintained by GST system reflecting the cash deposits in recognized Banks and payments of taxes and other dues made by the taxpayer. The Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) are also accounted for in the Electronic Cash Ledger as cash deposits of the taxpayer. | The Electronic Credit Ledger is maintained by the GST System. |
| Utilisation | The amount available in the Electronic Cash Ledger can be utilised for payment of any liability for the respective major and minor heads. For example, liability for the tax under SGST/UTGST can be settled only from the available amount of cash under SGST/UTGST Major head. For example, an amount of INR 1000 is available under minor head ‘tax’ of major head ‘SGST/UTGST’ and the taxpayer has a liability of INR 200 for minor head ‘interest’ under the same major head ‘SGST/UTGST’. Since, there is no amount available under minor head ‘interest’ under major head “SGST/UTGST”, therefore, interest payment cannot be made from the amount available under ‘tax’ of the same major head. | The amount available in the Electronic Credit Ledger can be utilized for paying of tax liabilities as per the following rules: (a) IGST input tax credit shall first be utilized towards payment of IGST liability and the amount remaining, if any, may be utilized towards the payment of CGST, SGST/UTGST liabilities, in any order before utilizing the CGST, SGST/UTGST credit. (b) CGST input tax credit shall first be utilized towards payment of CGST liability and the amount remaining, if any, may be utilized towards the payment of IGST liability. CGST credit shall be utilized only if IGST credit is not available. (c) SGST/UTGST input tax credit shall first be utilized towards payment of SGST/UTGST liability and the amount remaining, if any, may be utilized towards payment of IGST liability (if no CGST credit is available). SGST/UTGST credit shall be utilized only if IGST credit is not available. (d) CGST input tax credit cannot be utilized towards payment of SGST/UTGST liabilities and (e) SGST/UTGST input taxed credit cannot be utilized towards payment of CGST liabilities. |
| Discharging Liabilities | Amount available under one major head (SGST/UTGST, CGST, IGST or CESS) cannot be utilised for discharging the liability under any other major head. For example, amount available in SGST/UTGST cannot be utilised for discharging liabilities under CGST, IGST, or CESS and vice versa. | Unless the taxpayer makes a debit entry from the Electronic Credit Ledger against a specific liability, the amount available in the Electronic Credit Ledger cannot be assigned to any liability. |
| Can a Departmental Officer debit amount in lieu of outstanding dues? | Yes, in exceptional circumstances, especially when the amount of additional demand is not stayed by the Appellate Authority, Tribunal, or Court, the amount can be debited from your Electronic Cash Ledger to the extent of the demand. | Yes, in exceptional circumstances as permitted in the Act and rules, especially when the amount of additional demand is not stayed by the Appellate Authority, Tribunal, or Court, the credit can be debited to the extent of the demand by the proper officer. |
| Input Tax Credit | Input Tax Credits is not available in the Electronic Cash Ledger | Input Tax Credits is only available in the Electronic Credit Ledger. Tax Official can only unblock the credit available in the Electronic Credit Ledger of the taxpayer, which has been blocked earlier. |
| Privacy | Electronic Cash Ledger can only be viewed by the taxpayers themselves, or their authorized signatories and GST Practitioner. It can also be viewed by their Jurisdictional Officials (JO). | A GST Practitioner can view Credit ledger who has been authorized by you. You can allow or deny GST practitioner to view your credit ledger by online engaging/disengaging a GST practitioner. |
| Check Available Balance | A taxpayer can log on to the GST Portal Portal and navigate to the electronic cash ledger home page in the following way : Services > Ledgers > Electronic cash Ledger. The balance is shown on the right hand corner under the head “Cash balance as on Date:”. A summary of the major head wise balance is displayed when the cursor is placed on the same. To know the details of the transaction the taxpayer needs to submit a request for the report by giving the date range. | A taxpayer can login to the GST Portal and check the available balance on the landing page of the Electronic Credit Ledger. Path: Services > Ledgers > Electronic Credit Ledger |
