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Different type of GST ledgers a Taxpayer should maintain under GST

Under GST, the government requires every tax payer to maintain three GST ledgers and calculate the GST liability on monthly basis. During the calculation the Input tax liability should be calculated and matched with the Outward tax liability. Whatever is the balance should be paid to the government.

There are three GST ledgers needed to be maintained:

Electronic Tax Liability GST Ledger

Electronic Cash Ledger

Electronic Credit Ledger

Electronic Cash Ledger – Under this ledger, one must show the total tax liability of the registered taxpayer. The taxpayer would need to access his ledger through the GST portal after login. The template of the electronic cash ledger would look like this:

Amount of Tax PayableA
Interest, Late FeeB
Amount of tax payable along with the interest on account of mismatch of credit based on provisions of Section 29 and Section 29A or section 43 CC
Any other amount payable by the taxpayer or directed by the board on account of any proceedings carried outD
Tax deduction at SourceE
Tax collection at sourceF
Tax payable under reverse chargeG
Amount payable by the department against any interest, refund, penalty, late fee or any other amount determined under the proceedings as per the actH
Balance in Electronic Tax liability Ledger A+B+C+D+E+F+G+H

GST Ledger

GST Ledger

Electronic Cash  GST Ledger – For every registered tax payer, there would be an electronic cash ledger updated on the portal. The cash ledger would basically be the total amount that the tax payer has deposited to discharge his tax liability or interest or late fee or penalty for any other amounts. Also, under the new rule, the government has made it mandatory maintain a cash ledger for those who are making payment of over 10,000.

Electronic Credit Ledger – The taxpayer would be able to see all the tax paid on the input on the credit ledger. These are the following types of ITC that should be recorded in the Credit Ledger:

  • ITC on the input held in semi-finished goods, stock and finished goods only if the taxpayer is applying for the registration within 30 days of qualifying as a liable to pay tax.
  • ITC to the branch for the amount of credit transferred by the ISD
  • Input tax credit available on the taxes that have been paid under the reverse charge mechanism
  • ITC on the goods/services for the business and other purposed would be allowed to the extent applicable for business purposes.
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