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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Procedural Compliance under GST

Under section 49 of the CGST Act, what is the effect of transferring an amount from the electronic cash ledger of one head to the electronic cash ledger of another head under sub-section (10)?

Such a transfer is deemed to be a refund from the electronic cash ledger, and the amount received in the other head is deemed to be deposited in the ledger under section 49(1), per sub-sections (10) and (11).

  1. ASuch transfer is deemed to be a refund from the electronic cash ledger, and the amount is deemed deposited in the ledger on transferCorrect
  2. BIt is treated as a new tax payment not linked to the cash ledger
  3. CIt is not permitted under any circumstances
  4. DIt is treated as input tax credit credited to the credit ledger

Explanation

Section 49(10) provides that a transfer of an amount in the cash ledger to another head is deemed to be a refund from the electronic cash ledger. Section 49(11) then deems the transferred amount to be deposited in the ledger as under sub-section (1).

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