Section- 49 – CGST, SGST/UTGST, IGST Input Tax Credit Mechanism And E-Ledgers in GST 1. NORMAL CREDIT MECHANISM 2. REVERSE CHARGE CREDIT MECHANISM SOME OTHER SMALL POINTS 3. E-LEDGER in GST

1. Chakraborty Kapoor & Co. LLP
Cost & Management Accountants
Goods and Service Tax
Section- 49 – CGST, SGST/UTGST, IGST Input Tax Credit Mechanism
And
E-Ledgers in GST
CMA C.P. Kalra
CMAArunava Chakraborty
CMA Md. Rehan
Cost & Management Accountants
Email: info@cmackc.com
Contact No. 011-26275907

2. 1. NORMAL CREDIT MECHANISM
Chakraborty Kapoor & Co. LLP ©
2. REVERSE CHARGE CREDIT MECHANISM
SOME OTHER SMALL POINTS
3. E-LEDGER in GST
INPUT TAX CREDIT

3. Credit Mechanism
Input CGST
1st Priority:
Output CGST
Liability
2nd Priority:
Output IGST
Liability
Input
SGST/UTGST
1st Priority:
Output
SGST/UTGST
Liability
2nd Priority:
Output IGST
Liability
Input IGST
1st Priority:
Output IGST Liability
2nd Priority:
Output CGST Liability
3rd Priority:
Output SGST/UTGST
Liability
SGST/UTGST cannot be setoff against CGST
Chakraborty Kapoor & Co. LLP ©

4.  All input tax credit of CGST, SGST/UTGST and IGST
will be credited into E-Credit Ledger
 Such input tax credit of CGST, SGST/UTGST and IGST
will be utilized to set-off output tax liability
 If there is any balance left in E-liability ledger even
after setting off input tax credit with output tax
liability, then it will be paid from E-Cash Ledger.
Credit Mechanism

5. Note: -
 To pay from E-Cash Ledger, at first we have to load money
into E-Cash Ledger by using internet banking or
NEFT/RTGS or by depositing cash into scheduled bank
through challan
Note:-
 If there is tax liability under reverse charge then it must be
paid through E-Cash Ledger every month and it cannot be
discharged/setoff by using input tax credit. However it can
be claimed in next month as input credit.
Credit Mechanism

6. Any amount payable under reverse charge shall be paid by debiting the
electronic cash ledger. In other words, reverse charge liability cannot be
discharged by using input tax credit. However, after discharging reverse
charge liability, credit of the same can be taken by the recipient, if he is
otherwise eligible
Tax Liability under Reverse Charge
Mechanism
ITC:
A supplier cannot take ITC of GST paid on goods or services used to make
supplies on which the recipient is liable to pay tax.
Chakraborty Kapoor & Co. LLP ©

7. E-Cash Ledger
E-Credit Ledger
E-Liability Ledger
E-Ledgers
Chakraborty Kapoor & Co. LLP ©

8. Cash Ledger:
 This ledger will reflect all deposits made in cash and TDS or (and) TCS
made on account of tax payer. This ledger can be used for making any
payment on account of GST.
Credit Ledger:
 Self assessed ITC will reflect here in monthly return. Credit of this
ledger can only be used to set-off payment of output tax liability and no
other payment like penalty, interest, Tax liability under RCM.
Liability Ledger:
 This ledger will reflect total liability of a registered person for the
particular month. This ledger will be auto populated when GSTR-1 is
filed.
E- Ledgers in GST
Chakraborty Kapoor & Co. LLP ©

9. Connect us
CMA C. P. Kalra
CMAArunava Chakraborty
CMA Md. Rehan
Chakraborty Kapoor & CO. LLP
Mob: +91-9911299105, +91-9990837823,
+91- 011-26275907
Email : cma.rehan@gmail.com
Website: www.cmackc.com
Address : F-1210, LGF, Chirtanjan Park, New Delhi, 110019