GST is still evolving. Based on feedback received from various stakeholders GSTN keeps on simplifying the law, corrects the technical glitches, improves the system etc. One such problem the assesses were facing was depositing GST in wrong head. For example, instead of depositing amount in CGST, it is wrongly deposited under SGST head. Then liability under CGST cannot be adjusted from balance lying under SGST head.

 

You have to again deposit the amount in CGST head and claim refund of deposit wrongly made under SGST head. Although in such a scenario, they can claim the refund of the amount by filing a refund application in form RFD-01. Since taking the refund from Government is not really an easy task, an applicant must go through a long process which certainly takes more than a couple of months due to which the working capital of the taxpayers gets blocked.

In order to tackle such problem, Government has made amendment in Finance (No. 2) Act, 2019 (23 of 2019) by inserting sub section 10 and 11 to Section 49 of The Central Goods and Services Tax Act, 2017 on 30 August 2019 which is applicable w.e.f. January 1, 2020 in accordance with Rule 87 of The CGST Rules, 2017. Sec 49 (10) and

 

(11) are reproduced as below:-

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.

 

(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 (1).” CBIC has also made corresponding changes in Rule 87 CGST rules, 2017 which deals with electronic cash ledger vide Notification No. 31/2019- Central Tax dated 28 June, 2019, by inserting sub rule 13 namely “ 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 the Act to the electronic cash ledger for integrated tax, central tax, State tax or Union territory tax or cess in Form GST PMT-09”.

The said form PMT-09 was not enabled on portal at that time but now the same has been activated on common portal which is extremely crucial at this point of time when businesses are facing financial crisis due to lockdown amid COVID-19 outbreak.

 

Form PMT-09 enables taxpayer to transfer amount from one minor head/ major head to another minor head/major head. Hence, if a taxpayer has wrongly paid CGST instead of SGST, he can now rectify the same using Form PMT-09 by reallocating the amount from the CGST head to the SGST head. Or if he has wrongly deposited the amount in Interest head instead of Late Fees head , It can be rectified now by shifting the amount from wrong head to correct head through filing form PMT 09.

 

Keypoints to be considered before filing PMT-09

1. If the wrong tax has already been utilized for making any payment, then this challan is not useful. In other words, it will be able to handle only one situation and that is when payment is done in the wrong head and not utilized.

2. This challan only allows shifting of the amounts that are available in the electronic cash ledger.

3. The amount once utilized and removed from cash ledger cannot be reallocated.

4. Major head refers to- Integrated tax, Central tax, State/UT tax, and Cess.

5. Minor head refers to- Tax, Interest, Penalty, Fee and Others.

How to access PMT-09 on GST common portal? 1. Login to GST portal at gst.gov.in

2. Click on Services Ledgers

3. Click on Electronic Cash Ledger and

4. Now, you can file a fresh Form PMT-09 for transfer of amount or filed GST PMT-09.

Introduction of form PMT-09 was long overdue. It will be still better if there is only one cash ledger for depositing the amount. And from that cash ledger amount can be transferred to pay off the liability under various heads Such as IGST, CGST, SGST, Late Fees, Interest etc. GSTN should make full use of this lockdown period in improving its system, clearing the technical glitches so that when lockdown is lifted assesses can do compliances easily.

(The author is a practicing Chartered Accountant)