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

[Asked by Guest]

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

Electronic credit ledger usage: notification requires annual return liabilities paid via electronic cash ledger, limiting credit use.
Notification No.74/18 CT requires that additional liability declared in the annual return and paid through FORM DRC-03 be paid from the electronic cash ledger, thereby restricting use of the electronic credit ledger for such annual return liabilities. Practitioners advise voluntary earlier payment (for example via regular returns) using available credit while paying interest in cash to avoid interest, penalty or department action; some note a possible legal challenge to the notification based on general payment provisions, but challengeability is uncertain.