Utilization of available balance in E Credit ledger for discharging the tax declared in GSTR-9 through DRC-03

[Sravan Pathakoti]

sir,

Please clarify with the relevant sections or rules or circulars, can a registered person utilize the balance available in the electronic credit ledger to discharge the tax shown in GSTR-9 by filing DRC-03 mention the cause as 'annual return' U/s 73(5).

AI Summary

Can a registered person use the electronic credit ledger to pay GSTR-9 taxes under Section 73(5)? Discussion says no. A discussion on a forum addresses whether a registered person can use the electronic credit ledger balance to pay taxes declared in GSTR-9 via DRC-03, citing 'annual return' under Section 73(5) of the GST Act. The consensus is that additional liabilities from annual returns must be paid through the electronic cash ledger. It is advised to pay taxes promptly to avoid interest and penalties. While some argue that the restriction on using the credit ledger for past liabilities can be challenged, others caution against challenging government notifications without strong grounds.