Payment of Taxes and submission of return :

GST follows a system of ledgers for ITC and cash. ITC availed by the taxpayer shall be credited to the ledger on filing of return and ITC utilised by the taxpayer for payment of taxes shall be debited to the ledger on filing of the return. Any payment made through challan gets credited to the ledger and does not automatically get offset against any tax liability. Payment of taxes has to be done by debiting the cash ledger and the taxpayer can opt to debit the cash ledger while submitting the return.

The tax payer will submit the return with the payment of the amount of cash payable as per the return. The two activities can also be done separately and the taxpayer can make the payment in advance and credit his cash ledger. On filing of return, the ITC ledger will be credited with the amount of ITC available in the return, will be debited by the amount of ITC availed for payment of taxes in the return and the cash ledger will be debited by the amount payable by the cash.