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CMA Final · Indirect Tax Laws and Practice · Walkthrough of GSTN Portal

A taxpayer wishes to pay a tax liability of Rs 40,000 using the GST portal's electronic cash ledger, but the cash ledger balance is nil. Which sequence correctly reflects the process on the portal?

The taxpayer must generate a challan on the portal, pay it through an authorised mode such as net banking or NEFT/RTGS, and the amount is credited to the electronic cash ledger on realisation. Input tax credit cannot be moved to cash, and filing returns does not auto-debit bank accounts.

  1. AGenerate a challan through Create Challan, pay it by an authorised mode, and the amount gets credited to the cash ledger once the payment is realisedCorrect
  2. BDebit the credit ledger directly to the cash ledger by choosing Transfer Credit
  3. CAsk the jurisdictional officer to credit the cash ledger manually
  4. DFile Form GSTR-1 and the tax is automatically deducted from the bank account

Explanation

Cash deposits are made by generating a challan (PMT-06) through Services > Payments > Create Challan and paying via net banking, card, NEFT/RTGS or over the counter. Once realised, the amount is credited to the cash ledger. Credit ledger balances cannot be transferred to the cash ledger, and filing GSTR-1 does not debit a bank account.

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