CGST Section 49 – Payment of Tax, Interest, Penalty and Other Amounts [Updated 2019]

CGST Section 49 – Payment of tax, interest, penalty and other amounts

CGST Section 49 (1)

Every deposit made towards tax, interest, penalty, fee or any other amount by a person by internet banking or by using credit or debit cards or National Electronic Fund Transfer or Real Time Gross Settlement or by such other mode and subject to such conditions and restrictions as may be prescribed, shall be credited to the electronic cash ledger of such person to be maintained in such manner as may be prescribed.

CGST Section 49 (2)

The input tax credit as self-assessed in the return of a registered person shall be credited to his electronic credit ledger, in accordance with [1][Section 41 or section 43A], to be maintained in such manner as may be prescribed.

CGST Section 49 (3)

The amount available in the electronic cash ledger may be used for making any payment towards tax, interest, penalty, fees or any other amount payable under the provisions of this Act or the rules made thereunder in such manner and subject to such conditions and within such time as may be prescribed.

CGST Section 49 (4)

The amount available in the electronic credit ledger may be used for making any payment towards output tax under this Act or under the Integrated Goods and Services Tax Act in such manner and subject to such conditions and within such time as may be prescribed.

CGST Section 49 (5)

The amount of input tax credit available in the electronic credit ledger of the registered person on account of––

  1. integrated tax shall first be utilised towards payment of integrated tax and the amount remaining, if any, may be utilised towards the payment of central tax and State tax, or as the case may be, Union territory tax, in that order;
  2. the central tax shall first be utilised towards payment of central tax and the amount remaining, if any, may be utilised towards the payment of integrated tax;
  3. the State tax shall first be utilised towards payment of State tax and the amount remaining, if any, may be utilised towards payment of integrated tax;

[2][Provided that the input tax credit on account of State tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;]

d. the Union territory tax shall first be utilised towards payment of Union territory tax and the amount remaining, if any, may be utilised towards payment of integrated tax;

[3][Provided that the input tax credit on account of Union territory tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;]

e. the central tax shall not be utilised towards payment of State tax or Union territory tax; and

the State tax or Union territory tax shall not be utilised towards payment of central tax.

CGST Section 49 (6)

The balance in the Electronic Cash Ledger or Electronic Credit Ledger after payment of tax, interest, penalty, fee or any other amount payable under this Act or the rules made thereunder may be refunded in accordance with the provisions of Section 54.

CGST Section 49 (7)

All liabilities of a taxable person under this Act shall be recorded and maintained in an Electronic Liability Register, in such manner as may be prescribed.

CGST Section 49 (8)

Every taxable person shall discharge his tax and other dues under this Act or the rules made thereunder in the following order, namely:––

(a) self-assessed tax, and other dues related to returns of previous tax periods;

(b) self-assessed tax, and other dues related to the return of the current tax period;

(c) any other amount payable under this Act or the rules made thereunder including the demand determined under section 73 or section 74.

CGST Section 49 (9)

Every person who has paid the tax on goods or services or both under this Act shall, unless the contrary is proved by him, be deemed to have passed on the full incidence of such tax to the recipient of such goods or services or both.

Explanation:- For the purposes of this section

  1. the date of credit to the account of the Government in the authorised bank shall be deemed to be the date of deposit in the electronic cash ledger;
  2. the expression,—
    1. “tax dues” means the tax payable under this Act and does not include interest, fee and penalty; and
    2. “other dues” means interest, penalty, fee or any other amount payable under this Act or the rules made thereunder.

[1] Substituted for the words “section 41” by the Central Goods and Services Tax (Amendment) Act, 2018 – Date of Amendment : 29-08-2018, Effective from : 29-08-2018, Retrospective Effect : No

[2] Inserted by the Central Goods and Services Tax (Amendment) Act, 2018 – Date of Amendment : 29-08-2018, Effective from : 29-08-2018, Retrospective Effect : No

[3] Inserted by the Central Goods and Services Tax (Amendment) Act, 2018 – Date of Amendment : 29-08-2018, Effective from : 29-08-2018, Retrospective Effect : No

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.