Payment of tax, interest, penalty and other amounts

1. (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 67 prescribed, shall be credited to the electronic cash ledger of such person to be maintained in

such manner as may be prescribed.

1. (2) The input tax credit as self -assessed in the return of a registered person shall be

1. (3) The amount available in the electronic cash ledger may be used for making any

1. (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 4[and restricitions]4 and within such time as may be prescribed.
2. (5) The amount of input tax credit available in the electronic credit ledger of the registered person on account of ––
   • (a) 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;

1. (b) the centra l tax shall first be utilised towards payment of central tax

1. (c) the State tax shall first be utilised towards payment of State tax and the amount remaining, if any, may be utilised towards the 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

1. (d) the Union territory tax shall first be utilised towards payment of Union

2[

Provided that, the input tax credit on accou nt 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;]2

1. (e) the central tax shall not be utilised towards payment of State tax or Union territory tax; and
2. (f) the State tax or Union territory tax shall not be utilised towards payment of central tax.

1. (6) The balance in the electronic cash ledger or electronic credit ledger after payment of tax, interest, penalty, fee or any ot her amount payable under this Act or the rules made

thereunder may be refunded in accordance with the provisions of section 54.

1. (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.

1. (8) Every taxable person shall discharge his tax and other dues under this Act or the

rules made thereunder in the following order, namely: ––

1. (a) self-assessed tax, and other dues related to returns of previous tax periods;
2. (b) self-assessed tax, and other dues related to the return of the current tax period; 68
3. (c) any other amount payable under this Act or the rules made thereunder

including the demand determined under section 73 or section 74, 5[or

section 74A]5.

1. (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

1. (a) 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;

1. (b) the expression, -
   • (i) ―tax dues‖ means the tax payable under this Act and does not include interest, fee and penalty; and
   • (ii) ―other dues‖ means interest, penalty, fee or any other amount payable under this Act or the rules made thereunder. 1[(10) A registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under this

Act, to the electronic cash ledger for integrated tax, central tax, State tax, Union territory tax

or cess, in such form and manner and subject to such conditions and restrictions as may be prescribed and such transfer shall be deemed to be a refund from the electronic cash ledger under this Act.

1. (11) Where any amount has been transferred to the electronic cash ledger under this Act, the same shall be deemed to be deposited in the said ledger as provided in sub -section
2. (1) .]1 1[(12) Notwithstanding anything contained in this Act, the Government may, on the recommendations of the Council, subject to such conditions and restrictions, specify such maximum proportion of output tax liability under this Act or under the Integrated Goods and Services Tax Act, 2017 which may be discharged through the electronic credit ledger by a

registered person or a class of registered persons, as may be prescribed.]1