Clearmytax.in Editorial Team
- Introduction
In accordance to Section 49(1) of the CGST Act, 2017 read with Rule 87(1) of the CGST Rules,2017, electronic cash ledger is maintained in FORM GST PMT-05 for each person , liable to pay tax, interest, penalty, late or any other amount, on the common portal for crediting the amount deposited and debiting the payment there from towards tax, interest, penalty, fee or any other amount. At the time of deposition the tax payer is required to generate a challan in FORM GST PMT-06 on the common portal and enter the details to be deposited by him towards tax, interest, penalty, fee or any other amount.
It may be noted here that while filing the challan in FORM GST PMT-06 the tax payer is required to give details of deposit being made under various minor heads viz tax, interest, penalty, fee, others. Such details were required to be provided for each of the major heads of payments to Central Govt. viz CGST, IGST , Cess and State Govt viz SGST separately.
The cash ledger was accordingly credited with such amounts being credited minor head wise within major heads. Many a times deposition was made by tax payer in wrong head inadvertently due to which the money got blocked as same couldn’t be used for payment towards other major heads or minor head within a major head.
In such cases although the tax payer could claim refund by filing a refund application in FORM RFD-01 under option “Excess balance in electronic cash ledger”. However getting of refund in itself is a time consuming process and is not preferred by tax payers.
In backdrop of above necessary amendments were carried out in the law to enable tax payer to correct the GST deposited under wrong head and make his life easier. However there has been a legal gap in implementation as the Rule 87(13) by which GST PMT-09 was introduced, is itself not effective as on date. Each of such legal changes along with gap, are discussed in detail in the succeeding paras.
2. Insertion of new sub-sections to Sections 49 of the CGST Act
Section 99 of the Finance (No. 2) Act, 2019 which was notified on 1st August,2019,inserted two new sub sections viz sub-section (10) and (11) to Section 49 of the CGST Act, 2017. It may be noted here that Sec 49 deals with payment of tax, interest, penalty and other amounts.
For ready reference these newly inserted sub-sections are reproduced as under:-
(10) A registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under this Act, to the electronic cash ledger for integrated tax, central tax, State tax, Union territory tax or cess, in such form and manner and subject to such conditions and restrictions as may be prescribed and such transfer shall be deemed to be a refund from the electronic cash ledger under this Act.
(11) Where any amount has been transferred to the electronic cash ledger under this Act, the same shall be deemed to be deposited in the said ledger as provided in sub-section (1).”.
As per above sub-sections any amount transferred to other major head like CGST to IGST would be regarded as refund and similarly transfer from other major head like IGST to CGST would be regarded as deemed deposit. Further such transfer will be made in accordance to Rule to be devised in this regard.
It is important to note here that the provisions of above Sections were made effective from 01-01-2020 vide Notification No. 01/2020-Central Tax, dated 01-01-2020.
3. Insertion of new sub-section in the CGST Rules,2017
Rule 87 of the CGST Rules, 2017 deals with machinery provisions regarding electronic cash ledger. In said Rule, a new sub-rule (13) was inserted vide Notification no. 31/2019 – CT dt. 28.06.2019 w.e.f. a date to be notified. For ready reference the sub-rule is reproduced below:
“A registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under the Act to the electronic cash ledger for integrated tax, central tax, State tax or Union territory tax or cess in FORM GST PMT-09”.
In this regard it is important to note that above provisions would be effective from a date to be notified. Till date same have not been notified and thus Rule 87(13) of the CGST Rules, 2017 including FORM GST PMT-09 is not effective.
The format of FORM GST PMT-09 was also provided by above Notification and is given below for ready reference.
4. Option to file PMT-09 made available on GST Portal
The facility of filing of FORM GST PMT-09 for transferring the cash balance form one major head to another like CGST to IGST and amongst minor heads interest, penalty , fee etc has been started today on 21st April,2020 despite that fact that Rule 87(13) of the CGST Rules, 2017, from which said form derives its existence has not yet been notified.
Such a situation wherein Rule has not yet been made effective and FORM emanating from the non effective Rule has been made operational on the Common portal is really bizarre and shows communication gap between the GSTN and the CBIC. Further what is stopping CBIC from making the sub-rule (13) operational considering that Section 49(10) and (11) of the CGST Act, 2017 have already been made operational long back from 01-01-2020.
Anyways coming back, it is important to note here that FORM GST PMT-09 only allows shifting of the amounts from one major / minor head to another that are available in the electronic cash ledger. The amount once utilized for payment of tax and debited from cash ledger cannot be recredited / reallocated.
Examples of corrections permissible are wrong deposition of tax in CGST instead of IGST or wrong deposition of interest of CGST as penalty of CGST.
However in case CGST was to be paid but wrongly IGST was paid by debiting cash ledger while filing GST return, such a mistake cannot be rectified by filing GST PMT-09.
HOW TO ACCESS PMT-09 on GST common portal?
1. Login to GST portal at gst.gov.in
2. Click on Services > Ledgers
3. Click on Electronic Cash Ledger and
4. Now, you can file a PMT-09 by clicking on option “File GST PMT-09 for Transfer of Amount” and then fill in the details of ‘transfer amount from’ (Major head / minor head and amount) and ‘Transfer amount to’ (major head / minor head and amount). Subsequent to filing / submitting the form through preferred mode of filing i.e. through DSC or EVC, you may also view the filed GST PMT-09. (Below is screenshot as available in this regard on the common portal):
5. Concluding remarks
The start of facility of online filing of FORM GST PMT-09 from 21st April, 2020 on the common portal is welcomed by all tax payers specially in such tough times wherein we are hit by COVID-19 pandemic.
However if we see legally this FORM is not yet effective as same was inserted through sub-rule(13) of Rule 87 of the CGST Rules,2017 vide Notification no. 31/2019 – CT dated 28.06.2019 (w.e.f. date to be notified), which has not yet been notified till date. Such a situation is really a sorry state of affairs. It is expected that the sub-rule (13) of Rule 87 of CGST Rules, 2017 would be made effective soon by the Government, in order to iron out the current situation of absence of legal backing of GST FORM PMT-09.
Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
