GST pre-deposit may be discharged through the Electronic Credit Ledger; cash-ledger insistence was rejected and merits hearing directed.

The High Court rejected the view that the 10% pre-deposit for a GST appeal under Section 107 of the Central Goods and Services Tax Act, 2017 had to be paid only from the Electronic Cash Ledger. It noted that a prior Division Bench view on the issue had been stayed by the Supreme Court and referred to Notification No. 53/2023 dated 02.11.2023, which was treated as supporting part-payment through the Electronic Credit Ledger in delayed appeals. In these circumstances, the appeal was directed to be considered on merits rather than rejected for want of cash-ledger payment.

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Issues: Whether the 10% pre-deposit required for filing an appeal under the GST regime could be discharged from the Electronic Credit Ledger, and whether the appeal could be insisted upon being rejected for want of payment from the Electronic Cash Ledger.

Analysis: The appeal had been rejected solely on the ground that the statutory pre-deposit had to be made from the Electronic Cash Ledger. The judgment noticed that a prior Division Bench view on the same question had been stayed by the Supreme Court. It also took note of Notification No. 53/2023 dated 02.11.2023, which contemplated part-payment through the Electronic Cash Ledger in the context of delayed appeals, and treated this as supporting the view that the balance could be discharged through the Electronic Credit Ledger. In these circumstances, and pending the Supreme Court's decision, the appeal was directed to be considered on merits.

Conclusion: The insistence that the 10% pre-deposit under Section 107 of the Central Goods and Services Tax Act, 2017 must be paid only from the Electronic Cash Ledger was rejected, and the appeal was directed to be heard on merits.

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