What is Electronic Cash Ledger and Electronic Credit Ledger in GST Portal !!!

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What is an Electronic Cash Ledger?

This is like an e-wallet. Any GST payment made in cash or through a bank reflects in the Electronic Cash Ledger. After deduction of Input Tax Credit (ITC) any balance tax liability has to be paid using balance in Electronic Cash Ledger. For example- Mr. A has a GST on sales of Rs 50,000. He also has an Input Tax Credit on purchases of Rs 35,000. The balance of his Electronic Cash Ledger is Nil.

Particulars Amount
GST on Sales 50,000
Input Tax Credit (ITC) 35,000
GST Liability to be paid 15,000

The GST liability of Rs. 15,000 has to be paid in the form of cash/bank payment. Mr. A will deposit Rs 15,000. This will be shown in the Electronic Cash Ledger of Mr. A. The balance of the ledger will be utilized for payment of GST. This payment will reflect in Mr. A’s Electronic Cash Ledger.


What is an Electronic Credit Ledger?

All eligible Input Tax Credit that is claimed by a registered dealer in the GST returns (GSTR-2 or GSTR-3B) reflects in Electronic Cash Ledger. Credit in Electronic Cash Ledger can be used only for payment of tax. This means that the balance of Electronic Credit Ledger cannot be utilized for payment of interest, penalty or late fees. Interest and Penalty can be paid only through actual cash payment. Specific order and restrictions for utilizing ITC (IGST, CGST, SGST) for payment of GST liability: