Payment of DRC-3 using Electronic Credit Ledger

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We normally pay DRC-3 using Electronic Cash Ledger only. In what circumstances, DRC-3 can be paid using Electronic Credit Ledger? For Annual return, it is compulsory to make payment through cash. Can we use Credit Ledger for any other DRC-3 payments or Annual return payment?

AI Summary

Can DRC-3 Payments Be Made Using Electronic Credit Ledger Under GST? Exploring Notification No.74/18-CT and CGST Act. A query was raised regarding the payment of DRC-3 using the Electronic Credit Ledger under the Goods and Services Tax (GST) system. Typically, DRC-3 payments are made using the Electronic Cash Ledger, especially for annual returns, which require cash payments. One participant cited Notification No.74/18-CT, stating additional GST liabilities must be paid in cash. However, if the liability arises from ineligible credit, payment through the Electronic Credit Ledger might be permissible. Other contributors agreed, referencing relevant sections of the CGST Act and circulars, suggesting that credit could potentially be used for certain payments, including refunds and voluntary tax payments.