Page 11 - Ch9_POT & TDS-TCS

09. Sec 49(10) read with Rule 87(13):- Transfer of any amount of E-cash
ledger among minor & major heads

CCP 09.09.15.00
Mr. A has deposited a sum of ` 30,000 under minor head of “Interest” column for the major head
“IGST”. At the time of filing GSTR-3B for a particular tax period, he noticed that there is no sufficient
amount under the minor head 'Tax' towards payment of ` 30,000. When approached with the

Jurisdictional Tax officer, Mr. A was guided to deposit the tax amount under proper head of account and
claim a refund for the remittance of amount deposited under head ”interest”. Examine the relevant
provisions of CGST Act, 2017 towards payment of tax and compliance with the law. [CA Inter MTP Nov
21] [Study Mat]

Answer:
Legal provision:-
Ü As per Section 49(10) of CGST Act, 2017, a registered person can transfer the amount deposited under
any of the minor head i.e. tax, interest, penalty, fees or others to any of the heads under IGST/ CGST/
SGST/ UTGST and make the payment of taxes there upon.

Discussion and Conclusion:-
Ü Accordingly, Mr. A need not deposit the tax amount under head “ tax” and claim a refund for the
remittance of amount deposited under head ”interest.

Ü Rather, using the Form GST PMT 09, such amount can be transferred suo-moto on the common portal
from “interest” to “tax” head and tax liability be paid.

CCP 09.09.16.00

Pranesh has deposited a sum of ₹ 5,000 under the head of 'Fee' column of Cess and ₹ 4,000 was lying
unutilized under the head of 'Penalty' column of IGST. Both the deposits were made wrongly instead of
depositing under the head of Fee column under SGST.
In the light of the provisions of section 49(10) & 49(11) of the CGST Act, 2017, briefly explain the

relevant provisions as how can Pranesh rectify these errors? [CA Inter Nov 22 Exam]
Answer:
Legal provision:-
Ü As per section 49(10) of CGST Act, 2017, registered person is allowed to make intra-head or inter-head
transfer of amount, as available in electronic cash ledger, using specified form (i.e. Form GST PMT-09).

Ü It can transfer any amount of tax, interest, penalty, fee or others, under one (major or minor) head to
another (major or minor) head, as available in the electronic cash ledger.
Discussion & Conclusion:-

Ü Therefore, in given case, amount of
Ü ₹ 5,000 available under minor head 'fee' of major head 'cess' and
Ü ₹ 4,000 available under minor head 'penalty' of major head 'IGST'
can be transferred to minor head 'fee' of major head 'SGST' using specified form (i.e. Form GST PMT-09).

10. Sec 50:- Interest on delayed payment of tax
CCP 09.10.17.00
What are the provisions in relation to interest under GST?

If there is default in payment of tax and filing of returns, interest is payable on gross tax payable or net
tax payable?
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