Orissa HC: Pre-deposit Appeal Under GST Can Be Done Via E-Credit Ledger Instead of the E-Cash Ledger

The Orissa High Court in a recent judgement ruled that a pre-deposit under GST appeal could be incurred via Electronic Cash Ledger (ECL).

The Petitioner, Kiran Motors urged to set aside the order dated 31.03.2023 passed by the Addl. Commissioner of Central Tax (CT) & Goods and Service Tax(GST) is that the appellate authority denied the appeal as the pre-deposit of 10% of admitted tax amount was debited via the Electronic Credit Ledger (ECL) rather than Electronic Cash Ledger.

The circular dated 6th July 2022 that has been issued by the GST Policy Wing, Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance, Government of India, has clarified that payment of pre-deposit can be created through the use of ECL.

The Petitioner has already made the pre-deposit utilizing the ECL, which the Department will now accept, according to the Petitioner’s legal counsel.

An overview of all deposits and payments made by a taxpayer may be seen in the electronic cash ledger. Information is recorded in the ledger for each minor head under each major head. The ledger is presented main head-wise for the user’s convenience, i.e., IGST, CGST, SGST/UTGST, and CESS. Tax, Interest, Penalty, Fee, and Others are the five minor heads that are subdivided into each main head.

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On September 11, 2023, the appeal will now be heard by the Additional Commissioner of CT & GST, the first appellate authority. On that day, the petitioner will appear before the appellate authority with a downloaded copy of the ruling. After hearing from the Petitioner and the Department, the appeal will then be decided again within the next three months. the Dr Justice B R Sarangi and Justice Murahari Sri Raman-led court ruled.