Cash ledger debit

[Kavali Ramanjeneyulu]

One taxpayer owes some amount of GST to the govt. Dept informed the Bank where the taxpayer has his account to send DD for certain amount towards recovery of due of the taxpayer. Bank sent DD for RS fifty thousand in the name of the department. If the DD is encashed by raising Challan in the name of taxpayer, it will be credited to the taxpayer Cash ledger. If the taxpayer does not debit the cash ledger, it will not be treated as recovery. How can the cash ledger be debited by the department. PL clarify sir.

AI Summary

Clarification Needed on GST Recovery Process: Department's Role in Debiting Taxpayer's Cash Ledger After Demand Draft Issuance A taxpayer owes GST to the government, and the department instructed the taxpayer's bank to send a demand draft (DD) for recovery of the amount. The bank issued a DD for Rs. 50,000 in the department's name. The issue is whether the DD, once encashed and credited to the taxpayer's cash ledger, constitutes recovery if the taxpayer does not debit the ledger. The query seeks clarification on how the department can debit the cash ledger. The response indicates that the department needs to provide clarification on this process.