GST pre-deposit can be made through the electronic credit ledger when circulars permit the payment and it is duly reflected in returns.

Statutory pre-deposit for a GST appeal may be satisfied through the electronic credit ledger where the governing circulars permit utilisation of credit for arrears and pre-deposit, and the payment is properly reflected in the return. On that basis, a Registry objection to taking the appeal on record was untenable. The practical effect is that a pre-deposit made through CGST credit, supported by the return disclosure, can be accepted for admission of the appeal.

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Issues: Whether the mandatory pre-deposit could be made through the CGST credit ledger and whether the Registry objection to taking the appeal on record was sustainable.

Analysis: The appellant had reversed 7.5% of the duty demand through CGST credit and reflected the payment in GSTR-3B. The circulars governing utilisation of credit for arrears and pre-deposit supported the manner of payment, and the departmental representative accepted the legal position that pre-deposit could be made through CGST credit. On that basis, the objection raised by the Registry was found untenable.

Conclusion: The objection was set aside and the appeal was directed to be taken on record for final disposal.

Ratio Decidendi: A statutory pre-deposit may be satisfied through the electronic credit ledger where the governing GST circulars permit such utilisation and the payment is duly reflected in the return.

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