Taxpayers deposit money using challan and the paid amount gets credited in a particular head in the electronic cash ledger and the same can be utilized to pay the liabilities of that particular head only. Sometimes taxpayer deposits the amount in a wrong head and it cannot be utilized to pay the liabilities due under another head. In such cases taxpayers have to apply for refund of the tax paid under the wrong head by filing a refund application under FORM RFD-01 which is a long process and results in blockage of funds.

To make the above process faster and easy an amendment is done through section 99 of the Finance (No.2) Act, 2019 by inserting subsection 10 & 11 under section 49 to transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under this Act, on the common portal, to the electronic cash ledger for integrated tax, central tax, State tax, Union, territory tax or cess.

To give effect to this amendment corresponding amendment in rule 87 was also done through Central Goods and Services Tax (fourth Amendment) rules 2019 through Notification No-31/2019 dated 28th June, 2019 by inserting sub-rule 13 to prescribe the manner and conditions to transfer the amount of tax from one head to another head which is appearing in the electronic cash ledger. According to this rule taxpayer can file FORM GST PMT-09 to transfer any amount of tax, interest, penalty fee or any other amount available in the electronic cash ledger under the Act to the electronic cash ledger for integrated tax, central tax, State tax or Union territory tax or cess.

Now this facility is available on the GST portal for which Notification No.37/2020-CT dated 28th April, 2020 has been released to give effect to the above amendment which is applicable w.e.f 21st April, 2020.

To file FORM GST PMT-09 taxpayers are required to log in to the GST portal and navigate to Services>Ledgers>Electronic cash ledgers>File GST PMT-09 for transfer of amount option>

After Form GST PMT-09 is filed:

  • ARN is generated on successful filing of FORM GST PMT-09.
  • An SMS and email is sent to the taxpayer on his registered mobile & email.
  • Electronic cash ledger will get updated after successful filing of Form GST PMT09.
  • Filed Form GST PMT09 will be available for view/download in PDF format.

Author Bio

Qualification: CA in Job / Business
Company: CA Firm
Location: New Delhi, New Delhi, IN
Member Since: 03 May 2020 | Total Posts: 1

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