Under GST, there are three critical ledgers which you must keep a track of. These ledgers are maintained electronically in each tax payer’s login in the GST portal. These ledgers will give you information on the amount of cash deposited and utilised for payment of tax liabilities, the amount of tax refunded, the amount of input credit available to you for utilisation against your tax liability, the amount of input credit utilised already and its details, the amount of tax payable and paid, etc.

These ledgers are:

  • Electronic cash ledger
  • Electronic credit ledger
  • Electronic liability ledger

    How to view these ledgers?

    To view these ledgers, login to the GST portal. Click Services > Ledgers and you will see links to each of these ledgers. You can click on the ledger that you want to view.

    Electronic cash ledger

    Electronic cash ledger functions like an e-wallet. All the amounts deposited by you towards payment of tax, interest, penalty, late fee, or any other amount will appear here. You will also get a report of the amount utilised for payment of your liabilities.

    Electronic credit ledger

    Electronic credit ledger will show the input credit self-assessed and claimed by you in Form GSTR-2. The balance shown here can be utilised only for paying your tax liability and not liabilities of interest, penalty, late fee, etc. Also, balance in the input credit ledger cannot be used for paying liability of tax on reverse charge, tax deducted at source, and tax collected at source. The electronic credit ledger also shows the details of input credit already utilised.

    Electronic liability ledger

    Electronic liability ledger shows your liabilities towards tax, interest, penalty, late fee or any other amount. It also shows the details of liabilities already paid.

     

    Conclusion

    The electronic cash, credit and liability ledgers are critical ledgers in compliance under GST. Keeping track of these ledgers will assist you in utilizing input credit effectively and meeting your tax liabilities accurately.  This in turn will help you to avoid blockage of working capital and liabilities of interest, penalty, etc

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