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CMA Intermediate · Direct and Indirect Taxation · Returns and Payment of Taxes

Under the CGST Act, 2017, which statement about credit of deposits and input tax credit to the ledgers is correct?

Input tax credit as self-assessed in the return is credited to the electronic credit ledger. Deposits made by internet banking, cards, NEFT or RTGS go to the electronic cash ledger, and the date of deposit is the date the amount is credited to the Government's account in the authorised bank.

  1. AA deposit by internet banking is credited to the electronic credit ledger
  2. BSelf-assessed input tax credit in the return is credited to the electronic credit ledgerCorrect
  3. CDeposits by NEFT or RTGS cannot be credited to any ledger
  4. DThe date of the challan generation is the date of deposit in the cash ledger

Explanation

Section 49(2) credits self-assessed input tax credit to the electronic credit ledger. Deposits by internet banking, cards, NEFT or RTGS go to the cash ledger under section 49(1). The Explanation fixes the date of credit to the Government's account in the authorised bank as the date of deposit, not challan generation.

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