GST pre-deposit may be paid through the Electronic Credit Ledger, and refusal on that ground was set aside.

A pre-deposit required for maintaining a GST appeal could be made through the Electronic Credit Ledger rather than only the Electronic Cash Ledger. The appellate authority had refused to entertain the appeal solely because the 10% admitted-tax pre-deposit was debited from the Electronic Credit Ledger, but a GST Policy Wing circular dated 06.07.2022 clarified that such payment is permissible through that ledger. On that basis, the objection to the mode of pre-deposit was not sustainable, the refusal to entertain the appeal was set aside, the pre-deposit was directed to be accepted, and the appeal was to be heard afresh.

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Issues: Whether the pre-deposit required for maintaining the appeal could validly be made through the Electronic Credit Ledger instead of the Electronic Cash Ledger.

Analysis: The appellate authority had rejected the appeal solely on the ground that the 10% pre-deposit of admitted tax was debited through the Electronic Credit Ledger. A circular issued on 06.07.2022 by the GST Policy Wing clarified that payment of pre-deposit may be made by using the Electronic Credit Ledger. In view of that clarification, the rejection of the appeal on the stated ground could not be sustained.

Conclusion: The objection to the mode of pre-deposit was rejected, and the order refusing to entertain the appeal was set aside. The pre-deposit made through the Electronic Credit Ledger was directed to be accepted and the appeal was to be heard afresh.

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