SHIFTING OF AVAILABLE BALANCES IN THE ELECTRONIC CASH LEDGER (GST PMT-09)
(Effective from 21stApril 2020)
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Why PMT-09 is introduced?
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.
Solution before introduction of PMT-09 (Before 21 April 2020)
Taxpayer 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 balance in electronic cash ledger”. Since taking the refund from govt is not really an easy task, an applicant must go through a long process which certainly takes more than a couple of months due to which the working capital of the taxpayers gets blocked.
Govt has made amendment in Finance Act, 2019 by inserting sub section 10 and 11 to Section 49 of The CGST, 2017 on 30th Aug, 2019 which is applicable w.e.f. 01st Jan, 2020.
Sec 49 (10) and (11) The CGST, 2017 are reproduced as below:
10) A registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under this Act, to the electronic cash ledger for integrated tax, central tax, State tax, Union territory tax or cess, in such form and manner and subject to such conditions and restrictions as may be prescribed and such transfer shall be deemed to be a refund from the electronic cash ledger under this Act.
(11) Where any amount has been transferred to the electronic cash ledger under this Act, the same shall be deemed to be deposited in the said ledger as provided in sub-section (1).”
CBIC has also made corresponding changes in Rule 87 CGST rules, 2017 which deals with electronic cash ledger vide Notification No. 31/2019- Central Tax dated 28th June, 2019, with effect from a date to be notified later, by inserting sub rule 13 namely “ A registered person may, on the common portal, 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 in FORM GST PMT-09”. The said form was not enabled on portal on that date.GST common portal now enabled Form PMT-09 w.e.f. 21st April 2020 which is extremely crucial at this time when businesses earning no revenue due to a nationwide lockdown.
Points to consider before filing PMT-09
If the wrong tax has already been utilized for making any payment, then this challan is not useful. In other words, it will be able to handle only one situation and that is when payment is done in the wrong head and not utilized.
This challan only allows shifting of the amounts that are available in the electronic cash ledger.
The amount once utilized and removed from cash ledger cannot be reallocated.
Major head refers to- Integrated tax, Central tax, State/UT tax, and Cess.
Minor head refers to- Tax, Interest, Penalty, Fee and Others.
Form GST PMT-09 is a form which enables you to perform intra-head or inter-head transfer of amount available in Electronic Cash Ledger. It facilitates a registered taxpayer to transfer any amount of tax, interest, penalty, fee or others to the appropriate tax, interest, penalty, fee or others head under IGST, CGST, SGST/UTGST and Cess which is available in the Electronic Cash Ledger.
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