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

On the GST portal, a registered person wants to set off the balance in the electronic cash ledger against a tax liability. Which statement correctly describes how the electronic cash ledger is credited?

The electronic cash ledger is credited by generating challan PMT-06 on the GST portal and paying the amount through an authorised mode such as net banking, NEFT/RTGS or over the counter. It is not credited automatically from the credit ledger, which holds only input tax credit.

  1. AThrough generating challan PMT-06 and paying the amount by an authorised modeCorrect
  2. BAutomatically from the electronic credit ledger at the end of each month
  3. CBy the proper officer on filing of Form GSTR-1
  4. DOnly through refund sanctioned from the electronic liability register

Explanation

Deposits into the electronic cash ledger are made by generating a challan in Form GST PMT-06 on the portal and paying through net banking, NEFT/RTGS, OTC or other permitted modes. The credit ledger is credited by ITC, not by transfers from it to cash, so the second option is wrong.

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