Utilisation of amount in electronic credit ledger :
The amount available in the electronic credit ledger may be used for making any payment towards output tax under the provisions of the Act or the rules made there under in prescribed manner – section 49(4) of CGST Act.
“Output tax” in relation to a taxable person, means the tax chargeable under this Act on taxable supply of goods or services or both made by him or by his agent but excludes tax payable by him on reverse charge basis – section 2(82) of CGST Act.
Thus, amount in electronic credit ledger cannot be used for payment of interest, penalty or fees. It also cannot be used where GST is payable under reverse charge basis.
Credit of IGST for payment of IGST, CGST and SGST/UTGST in that order – The amount of input tax credit on account of IGST available in the electronic credit ledger shall first be utilized towards payment of IGST and the amount remaining, if any, may be utilized towards the payment of CGST and SGST/UTGST, in that order – – section 49(5)(a) of CGST Act.
Credit of CGST for CGST and balance for IGST – The amount of input tax credit on account of CGST available in the electronic credit ledger shall first be utilized towards payment of CGST and the amount remaining, if any, may be utilized towards the payment of IGST – section 49(5)(b) of CGST Act.
The input tax credit on account of CGST shall not be utilized towards payment of SGST/UTGST.
Credit of SGST/UTGST first for SGST/UTGST and balance for IGST – The amount of input tax credit on account of SGST/UTGST available in the electronic credit ledger shall first be utilized towards payment of SGST/UTGST and the amount remaining, if any, may be utilized towards the payment of IGST – section 49(5) (c) of CGST Act.
The input tax credit on account of SGST/UTGST shall not be utilized towards payment of CGST.