Since the advent of the Goods and Services Tax (GST) regime, there have been issues that have needed either amendments or rectifications. One such issue is related to payment of tax under the wrong heads.
Payment of tax or other amounts are required to be made using ‘challans’. Once payment is made, the cash balances in the respective heads are utilised to settle the output liabilities. However, in some cases, amounts are paid under wrong heads, due to which payments need to be made again using the correct heads, thereby leading to blocking of funds.
In these cases, taxpayers generally used any of the following options:
- File an application in Form GST RFD-01 for refund of ‘excess balance in electronic cash ledger’ or
- Wait for the balance in the wrong head to be utilised in the next tax period or any of the future tax periods (thereby displaying a balance in electronic cash ledger until utilised)
To provide a simpler option to taxpayers, the government introduced Form GST PMT-09.
By way of the Finance Act (No. 2) of 2019, sub-sections (10) and (11) were added in section 49 of the Central Goods and Services Tax Act, 2017. These sub-sections were made effective from 1st January 2020. The provisions of these sub-sections are as follows:
“(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 these sub-sections, any amount of tax, interest, penalty, fee or any other amount available in the electronic credit ledger can be transferred to the electronic credit ledger for IGST, CGST, SGST or cess.
Further, Rule 87(13) was introduced in the Central Goods and Services Tax Rules, 2017 vide notification 31/2019 – Central Tax dated 18th June 2019.
In the said notification, Form GST PMT-09 was notified as the form for transfer of amounts from one head to another. This form was not enabled on the portal on that date but is being enabled now, to ensure that businesses that are heavily impacted by the lockdown can utilize blocked funds, if any.
However, an important point to note here is that, although the form is available on the portal w.e.f 21st April 2020, rule 87(13) which notified form GST PMT-09 is not effective till date.
How to access form GST PMT-09?
Login to the GST portal.
Go to Dashboard > Services > Ledgers > Electronic Cash Ledger > File GST PMT-09 for transfer of amount
For a live demo of how to file this form, watch this video.
Points to remember before filing this form
- This form is applicable only in cases where balances are available in electronic cash ledgers.
- This form cannot be used in cases where balances have already been utilised for payment of tax or any other amounts.
- Multiple transfers can be added in one form, the option to ‘add record’ is to be used before filing.
- Major heads are – IGST, CGST, SGST and cess
- Minor heads are – tax, interest, penalty, fee and others
- Amount can be transferred from one head to another only if balance is available in the head from which such transfers are to be made.
About the author
Nikita is a practicing Chartered Accountant. Since the advent of the Goods and Services Tax (GST) law in India, she has served as a trainer of the law, as a consultant and has also conducted seminars. In her free time, she loves reading, public speaking and running.
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