In our previous article in this series, we have already discussed the electronic liability register (Form GST PMT-01). In this piece, we will cover Form GST PMT-02 (electronic credit ledger) in this article. This form is used to maintain the data related to the input tax credit of the registered person.
Clarification on Format of Form GST PMT-02
Following are the basic details on the Form GST PMT-02:
Trade name, if any
Period – From ——- To ——– (dd/mm/yyyy)
Act – CGST/SGST/UTGST /IGST/CESS /All
The person registered under GST will be able to see the amount of ITC utilized and available in the electronic credit ledger (Form GST PMT-02) on the common portal. Information of the provisional ITC and ITC mismatch would also be available in the electronic credit ledger (Form GST PMT-02).
The flowchart below is a description of the electronic credit ledger and the major heads on it:
The electronic credit ledger (Form GST PMT-02) will provide the details like the tax period and source of ITC and purpose of utilization. The amount of ITC utilized for the payment of tax, or the ITC on the purchase of inputs would be mentioned in the ledger under different heads like CGST, SGST, UTGST, IGST, Cess, Total.
The amount of ITC available will also be shown in the ledger under the above different heads.
Philip Private Limited is registered in Chennai and has ITC available on IGST of Rs. 2,00,000.
Philip had purchased glass from Sriram works in Chennai for manufacturing products like tube lights, lamps etc. and paid a tax of Rs 1,00,000 on the purchase of glass. The ITC for this will be divided between SGST and CGST (Rs. 50,000 each), since it is a same-state purchase.
Philip then sold these products for Rs. 10,00,000 to Ultra Lighting Limited in Bangalore. Philip had a tax liability under IGST for Rs 1,80,000 on this sale to Ultra. Philip used Rs. 50,000 from its available ITC (under IGST) to discharge a part of the tax liability of Rs. 1, 80, 000 under IGST. The rest was paid by net banking.
In this case, Rs. 50,000 would be debited under the head IGST. The amount of ITC available under CGST, SGST and IGST would be Rs. 50,000, Rs. 50,000 and Rs. 1, 50,000.
Balance of Provisional ITC
The person registered under GST can claim the ITC paid on inputs by him on a provisional basis. Details of the available provisional ITC will also be shown under different heads like CGST, SGST, UTGST, IGST, Cess, Total. All the ITC which was not available due to mismatch would also be shown in the ledger for the tax period under the category of mismatched ITC according to the above-mentioned different heads.