Page 8 - Ch9_POT & TDS-TCS

CCP 09.04.09.00
M/s ABC & Co. have defaulted in filing the return under Section 39 of CGST Act, 2017 i.e. GSTR-3B for

the month of March within the specified due date. Reason for such delay is attributable to delay in
closure of books for March, which have been finalised during May. The GST Common portal prompted
for payment of late fees payable under Section 47 of CGST Act, 2017 for a sum of ₹ 2,000 under CGST
and SGST each. Accountant, of M/s ABC & Co., sought your confirmation for payment of such late fees

through the balance available in Electronic Credit Ledger Give your guidance in this regard.
[Study Mat]
Answer :-
Legal Provision:

Ü As per Section 49(3) of the CGST Act 2017, the amount available in the electronic cash ledger may be used
for making any payment towards tax, interest, penalty, fees or any other amount payable under the
provisions of this Act or the rules made there under in prescribed manner.
Ü As per section 49(4), the amount available in the electronic credit ledger may be used for making any
payment towards output tax.

Discussion & Conclusion:
Ü As per the above-mentioned provisions, late fees shall be paid only through electronic cash ledger and not
through electronic credit ledger.

Ü Hence, the sum of ₹ 2,000 shown on the common portal has to be deposited in Electronic Cash Ledger
under appropriate minor head, through any of the specified modes.
Ü Thus, contention of the accountant of M/s ABC & Co. is not correct.

05. Sec 49(5)/ 49A/ 49B read with Rule 88A:-
Manner of utilization of input tax credit under GST

CCP 09.05.10.00
Answer the following:-

(i) Explain the manner of utilization of input tax credit?
(ii) Can IGST/CGST/SGST/UTGST credit be utilized for payment of outward Compensation Cess?
(iii) Should the payment be made only from the account of the taxable person?
Answer:
(i) As per section 49(5), 49A, 49B of CGST Act read with rule 88A of CGST Rules, 2017, the manner

of utilization of input tax credit under GST is as follows:-
Ü Credit of:-
A IGST shall be used for paying IGST first & then CGST or SGST/UTGST in any order and in any

proportion.
A CGST shall be used for paying CGST first & then to pay IGST
A SGST/UTGST shall be used for paying SGST/UTGST first & then to pay IGST
Ü However, IGST credit is to be fully utilized first as above & then the CGST/ SGST/ UTGST credit
can be utilized & SGST/UTGST can be used to pay IGST only after CGST balance is not available to

pay IGST
(ii) No. Input tax credit of IGST/CGST/SGST/UTGST cannot be utilised for payment of outward
compensation cess.

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