GST pre-deposit may be paid through the Electronic Credit Ledger when no specific statutory restriction applies.

The GST appellate pre-deposit of 10% of the disputed tax may be discharged by debiting the Electronic Credit Ledger because the statutory scheme permits that ledger to be used for payment towards output tax, and the appellate deposit is treated as a payment linked to tax liability. The Court relied on the governing rules and the CBIC circular clarifying that amounts payable as a consequence of GST proceedings may be paid through the Electronic Credit Ledger. Since the only express restriction concerned reverse charge liability, which was not involved, the deficiency memo rejecting that mode of payment was unsustainable.

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Issues: Whether the mandatory pre-deposit of 10% of the disputed tax for filing an appeal under the GST law can be paid by debiting the Electronic Credit Ledger.

Analysis: The statutory scheme permits the amount in the Electronic Credit Ledger to be used for payment towards output tax. The Court read the pre-deposit requirement under the appellate provision as a payment linked to discharge of tax liability, not as a barred category of payment outside the GST credit mechanism. It also relied on the governing rules and the CBIC circular clarifying that payment towards output tax, including amounts payable as a consequence of GST proceedings, may be made through the Electronic Credit Ledger, and noted that the only stated restriction concerned reverse charge liability, which was not involved here.

Conclusion: The pre-deposit under the appellate provision can be made by debiting the Electronic Credit Ledger, and the deficiency memo rejecting that mode of payment is unsustainable.

Ratio Decidendi: Where the GST framework and binding circulars permit utilisation of the Electronic Credit Ledger for payment towards output tax, the statutory pre-deposit required for filing an appeal may also be discharged through that ledger, except where a specific statutory restriction applies.

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