The Central Board of Indirect Tax has enabled the GST-PMT09 to facilitate the transfer of wrongly paid Input tax credit. If the taxpayer has made any mistake while paying the tax, it goes under wrongly paid Input tax credit In such a case the taxpayer can now rectify the payment by using the PMT-09 form.
Before understanding the use of GST-PMT09 ,let us understand in brief about Cash Ledger
What is Cash Ledger in GST?
Cash ledger on GST portal is an archive of all the payments made in cash by a taxpayer. The cash paid towards each section is differentiated and shown under different heads such as CGST, IGST, SGST/UTGST and CESS.
Taxpayer can access the Electronic cash ledger on GST portal under the head ‘Services’ > Ledgers, after logging in. Under ledger, there would be an option of Electronic cash ledger tab.
Why Form PMT-09?
Taxpayer can use this form to transfer the amount wrongly paid under one head to another head. For instance, if the taxpayer has paid the amount under IGST instead of CGST, then GST-PMT09 form can be used.
Taxpayers registered under GST can avail the facility of this form and rectify the error if any during tax payment.
Who is not eligible for PMT-09?
Taxpayers should know few eligibility criteria before downloading and starting to full the form GST-PMT09 for ITC reversal.
- Fill the form for ITC credit only if there is any balance in cash ledger
- The form would not serve any purpose if the amount has been utilised already, for instance in case of GSTR 3b
- The form can be used only for transferring the available cash balance from one head to another
- In case of refund, taxpayers should fill for RFD-01 instead of PMT-09
Benefit of GST-PMT09 over RFD-01
An individual can use refund form RFD-01 in order to avail the refund of the excess amount paid. Taxpayers however raised the issue that refund process in sluggish, taking 2-3 months.
In order to ease the process and make sure that taxpayers are able to utilize their money, GST-PMT09 was introduced by CBIC. Taxpayers who are filling the challan for the first time should be aware of certain points. They should fill all the heads whether minor or major before submitting the form for processing.
Under the fourth amendment of GST, CBIC introduced Clause 13 wherein taxpayer can reallocate the tax from minor head to major head and vice-versa.
Where to Find GST-PMT09?
- Taxpayers who wish to access this challan should login to the GST portal through their credentials
- After logging in, go to the ‘Service’ section on the portal
- Under service section, click on Ledger section and then Electronic Cash Ledger
- Choose ‘File GST PMT-09 for Transfer of Amount’ option from the given options.
Read all instructions given in the form carefully before submitting the form.