As per the Notification 31/2019, Central Tax Issued on 28th June 2019 seeks about Important clarifications which were demanded by the taxpayers. Since the inception of the GST, there have always been Technical issues, or the reason might be that the people were not properly educated and aware of the GST mechanism and taxpayers have also not become the user-friendly with the GST Portal.

Since various taxpayers at the time of making the GST Challan Payment have done mistakes by filling the amounts in the Wrong head. Either there might be chances that the taxpayer who wanted to file the amount in CGST head have wrongly paid tax under the IGST head or vice versa and there can be a lot of cases irrespective of the heads like the CGST head, SGST head, IGST head, CESS Head.

Once the taxpayer pays the challan, the payment gets credited in that head and the same can be utilized in settling their relevant output liabilities after adjusting with the Input Tax credit. But in some cases where the challan is wrongly paid or the amount is paid under the wrong head ,it can’t be used against discharging the liabilities of that head due to which the taxpayers need to file another challan and if they wish it can remain in their cash ledger for utilizing the same in discharging their output liabilities or they can claim the refund of the amount by filing a refund application in form RFD-01 choosing the option at the time of refund application of Excess to cash ledger. Since the refund process is not really an easy process, an applicant or a taxpayer must go through a long process which certainly takes time around 3-4 months due to which the working capital of the taxpayers gets blocked.

Even after filling the online refund application, the taxpayer has to do a lot of paperwork in spite of that they also have to appear to the tax authorities. In order to remove this difficulty of the taxpayer’s central government come up with this facility of FORM PMT-09. PMT 09 is the prescribed challan for shifting the wrongly paid ITC.  It is recently introduced by CBIC. If you have paid a wrong tax, like CGST in place of SGST, you can shift it using this challan.

PMT 09 consists of minor and major heads. You can mention the amount of tax you wish to shift as in the details of the amount to be transferred from one account head to another. The reallocation of tax can be from major head to minor head and vice versa. The provision was brought in under the Fourth Amendment Act of CGST norms and Clause 13 was introduced to CGST Rules as in rule 87.

GST PMT-09

Every taxpayer can fill PMT 09. It can be accessed via the GSTN portal. Once it is successfully deployed on the GST Portal.

Few Points to Remember About GST PMT 09:-

1. It will be able to handle only one situation and that is when payment is done in the wrong head and not utilized.

2. If the data in return itself is wrong the challan will be wrong but then it will be adjusted too.

3. The amount once utilized and removed from cash ledger cannot be reallocated

4. Challan is useful when payment is done under the wrong head but not utilised

5. It’s impossible to edit GSTR 3B

Author Bio

Qualification: Student - CA/CS/CMA
Company: Narendra Bhandari & Co.
Location: Indore, Madhya Pradesh, IN
Member Since: 16 Apr 2019 | Total Posts: 12
Experienced Practitioner with a demonstrated history of working in the higher education industry. Skilled in Business Implementation Management Consultancy, Statutory Audit, and Goods and Services Tax (GST). Strong healthcare services professional with a Bachelor of Commerce - BCom focused on Taxat View Full Profile

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4 Comments

  1. ankit3210 says:

    A very insightful write-up, Rachit!
    PMT-09 has been brought in at a very right time. Multiple cases of blockages made in wrong payment heads will be cleared and can be used for making upcoming payments by the GST taxpayers in this period of liquidity issues.

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