Payment of Taxes :
Every registered person is required to compute his tax liability on a monthly basis by setting off the Input Tax Credit (ITC) against the Outward Tax Liability. If there is any balance tax liability the same is required to be paid to the government.
There are 3 ledgers prescribed by the government that is required to be maintained by every tax payer –
1. Electronic Tax Liability Ledger
The electronic tax liability ledger shows the total tax liability of a registered person at any point of time. This detail can be accessed on the GST portal of a registered tax payer
* Amount of Tax Payable
* Interest , Late Fee
* Amount of Tax Payable along with interest on account mismatch of credit based on provisions of Section 29 or Section 29A or Section 43C
* Any other amount payable by the taxpayer or directed by the board on account of any proceedings carried out
* Tax Deducted at Source
* Tax Collection at Source
* Tax Payable under Reverse Charge
* Amount payable by the department against any interest , refund, penalty, late fee or any other determined under the proceedings of the Act
* Balance in Electronic Tax Liability Ledger
2. Electronic Cash Ledger
An Electronic Cash Ledger will also require to be maintained on the GST portal. It will show the amount deposited by the tax payer towards discharge of his tax liability or interest or late fee or penalty any other amounts.
Also, it is now mandatory for businesses making payment for more than `10,000 to do it electronically.
3. Electronic credit ledger
All the taxes paid on the inputs would be recorded in the electronic credit ledger. The input tax credit in each of the cases mentioned below, shall also be transferred to the electronic credit ledger:
* ITC available due to the taxes paid under the reverse charge mechanism shall also be transferred to the electronic credit ledger.
* ITC available on goods/services used for the business and other purposes shall only be allowed to the extent applicable for business purposes.
* ITC available to the branch for the amount of credit transferred by ISD
* ITC allowed on input held in stock and the semi-finished or finished goods would be credited to electronic credit ledger if the taxpayer applies for registration within 30 days of becoming liable to pay tax.
* ITC available on the input held in stock and semi-finished or finished goods by a taxpayer in the composition scheme converting to a normal taxpayer shall be transferred to electronic credit ledger.
All the payments under GST have to be made by either using the input tax credit available in the electronic credit ledger or through the electronic cash ledger.