Introduction of e-Ledgers under GST is one such area that has been a concern for many. In this article, we will explain what e-Ledgers are and how have they been classified.
The term ‘e-Ledger’ is an electronic form of ledger that will be available to dealers/ traders who have registered under GST.
This is FREE and will showcase in the respective account of the GSTIN holders.
When a tax payer will login into his GST account on the official website, he would be able to access his e-Ledger accounts. Currently there are 3 different types of e-Ledger accounts that are available:
- e-Cash Ledger
- e-Credit Ledger
- e-Liability Ledger
All these three ledgers have a different role to play. Let’s discuss about them now.
e-Cash Ledger is like a wallet that needs to be maintained online. It allows a tax payer to store money online and use it for the purpose of paying taxes, interest, penalties, etc. However, if an e-Cash ledger is running out of money, the tax payer has the opportunity to add money to his account by using credit card, debit card, net banking, etc. All cash deposits made using various modes will be shown here.
Note: All the balance that is present in e-Cash ledger can only be used for paying taxes or any other form of payments made in connection to taxes (interest, penalty, etc.) You can cannot use this balance to shop online or pay your telephone bills, etc.
The e-Credit Ledger reflects a self-assessment made by the tax payer with respect to ITC (input tax credit) on a monthly basis. All ITC received by the tax payer through IGST, CGST and SGST needs to be shown here. The balance in this account can be used by the tax payer to settle his tax liability.
Note: The amount cannot be used to settle any dues in respect of interest or penalty. The benefit of swapping credits within IGST, SGST and CGST is available.
The e-Liability Ledger will be auto populated by the system. Data entered in the e-Cash ledger and e-Credit ledger will automatically transcript the tax liability of the tax payer on a monthly basis. All that the respective user has to do is find the tax liability due from his end and pay the same.
Thus, we find that the e-Ledger system is an extremely easy-to-use mechanism that has been vested by IT Department of India to the tax payers. The masochism to feed data is very simple and people who common internet knowledge can also handle their GST accounts all by themselves.
How to Access GST e-Ledgers
1) Visit gst.gov.in or https://services.gst.gov.in/services/login
2) Enter username, password and code shown in image.
3) After Login, click on service menu. It will shows you all ledgers i.e. electronic cash ledger, electronic credit ledger and electronic liability ledger.
Have questions? Feel free to use the comment box! We will be glad to help you understand the scope of e-Ledgers and its operations.