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

Which statement about the electronic cash ledger on the GST portal is correct?

The electronic cash ledger can be used to pay tax, interest, penalty, fee or any other amount under the GST law, and any excess balance can be claimed as refund by filing an application in Form GST RFD-01 on the portal.

  1. AAmount in it can be used to pay tax, interest, penalty, fee or any other amount, and the balance can be claimed as refund by filing Form GST RFD-01Correct
  2. BAmount in it can be used only to pay tax and not interest or penalty
  3. CAmount in it can be used to utilise IGST credit without limit
  4. DAmount in it cannot be refunded under any circumstances

Explanation

The cash ledger holds deposits that may be used for tax, interest, penalty, fee or other amounts. Any unutilised balance can be claimed as a refund through RFD-01. Hence the claim that it is only for tax, or non-refundable, is wrong.

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