Introduction:

The E-Ledger acts as a digital passbook for GST, available to all GST registrants via the GST portal. It displays:

• The electronic cash ledger shows the GST deposited in cash with the government.
• The electronic credit ledger reflects the available Input Tax Credit (ITC).
• The electronic liability ledger outlines how GST liabilities are cleared and leftover liabilities managed.

Here's a comprehensive guide on accessing e-ledgers on the GST Portal. You can also view these ledger balances on the ClearTax GST Software when completing GST Returns.

What is an Electronic Cash Ledger?

This functions similarly to an e-wallet, recording GST payments made in cash or via bank transactions in the Electronic Cash Ledger. Post deduction of Input Tax Credit (ITC), any residual tax liability must be settled using this ledger's balance. Consider Mr. A, who has a GST on sales of Rs 50,000 and an Input Tax Credit of Rs 35,000. The net GST liability would be Rs 15,000; Mr. A can pay this in cash or bank, deposited into his Electronic Cash Ledger.

E-Ledgers under GST

The Electronic Cash Ledger balance is used for paying GST dues, visible on the GST Portal. Eligible Input Tax Credit, claimed in GST returns (GSTR-2 or GSTR-3B), also features here. However, the electronic credit ledger’s balance can only settle tax payments, not interest, penalties, or fees, which require cash payments. There are distinct rules for utilizing ITC (IGST, CGST, SGST) against GST dues:

• IGST credit can cover liabilities in this order: IGST, CGST, SGST/UTGST.
• CGST credit isn’t applicable to SGST payments; it follows CGST, then IGST.
• SGST/UTGST credit cannot pay for CGST; it follows SGST/UTGST, then IGST.

Using the earlier example, Mr. A’s ITC of Rs 35,000 divides as: IGST – Rs. 18,000, CGST – Rs. 7,000, SGST – Rs. 10,000. With an IGST liability of Rs 30,000, IGST credit fully covers it, and Rs 12,000 must be paid in cash. CGST credit offsets Rs. 7,000 against a Rs. 10,000 liability, leaving Rs. 3,000 to be paid. The SGST credit suffices SGST dues, exempting Mr. A from paying extra SGST.

What is the Electronic Liability Ledger?

This ledger itemizes GST liabilities, including how they are paid in cash or credit. The ledger allows detailed tracking of GST liabilities settlement in the GST Portal.

E-Ledgers under GST

Understanding these e-ledgers is essential, and you can access them via the GST portal. You can also import e-ledger balances into the ClearTax GST Software when preparing GSTR-3B.