Electronic credit ledger displays input tax credit available to the taxpayer during the tax period. Balance in this ledger will be used to pay tax dues. If GST liability is less than GST credit then excess balance will be reflected in the credit ledger. If GST liability exceeds GST input credit then the differential amount will be paid by debiting an electronic cash ledger.
The electronic credit ledger is maintained in electronic form on the GST portal for every taxpayer except the following-
- Composition dealer
- Input service distributor
- Person liable to deduct tax at source under GST
- Person liable to collect tax at source under GST
Components
Electronic credit ledger is available in FORM GST CMP-02 on the common portal with the following components-
- Serial number
- Date
- Reference number
- Tax period
- Description
- Transaction type (Debit/Credit)
- Amount – integrated tax, central tax, state tax, cess, and total.
This ledger can be accessed using the path given below-
- GST Portal > Login > Services > Ledgers > Electronic Credit Ledger
Note, taxpayers cannot edit the credit ledger. This Ledger can be viewed or downloaded for a maximum period of 6 months.
Utilization rules
Accumulated balance of input tax credit in the electronic credit ledger will be utilized as per the following rules:
1. As per sub-section 5 of section 49 of CGST Act, 2017, balance in credit ledger may be utilized for payment of output tax under CGST Act or IGST Act only. This means balance cannot be utilized for payment of interest, penalty, late fees, or reverse charge liabilities.
2. As per sub-section 6 of section 49 of CGST Act, the balance of ITC in electronic credit ledger shall be utilized in the following priority-
- Credit of integrated tax first shall be utilized to pay integrated tax dues and then balance will be utilized to pay dues of state tax/central tax.
- Credit of state tax first shall be utilized to pay state tax and then balance will be utilized to pay integrated tax.
- Credit of central tax first shall be utilized to pay central tax and then balance will be utilized to pay integrated tax.
Blocking of input tax credit
As per rule 86A of CGST Rules, any GST officer, not below the rank of assistant commissioner, may temporarily restrict the debit from the electronic credit ledger which means ITC cannot be used to pay the output tax liability. The tax officer may block the credit because of the following reasons-
1. ITC has been claimed;
- by means of fraud, or
- for goods or services which has not been received, or
- on the basis of a document issued by a person who does not exist or
- on the basis of a document issued by a person who is not operating any business from the registered place;
- for tax which has not been deposited to the government;
2. Taxpayer does not exist.
3. Taxpayer is not operating any business from any registered place of business.
4. Invoice or debit note or any other required documentation for respective supply is not in possession.
The concerned officer after investigation may remove the restriction of the utilization of ITC. Intimation for blocking or unblocking of credit will be shared with the taxpayer on the registered email id and registered phone number.
Whether excess balance in electronic credit ledger can be claimed as a refund?
Excess credit balance in the ledger can be claimed as a refund only if the excess amount belongs to an inverted duty structure or Zero-rated supplies. The amount to the extent of the GST refund claim will be debited in the credit ledger.
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