How to Transfer Cash Ledger Balance in GST?

The Goods and Services Tax (GST) portal maintains two ledgers, the cash and the credit ledger, which are updated based on taxpayer returns. The cash ledger maintains the details of cash deposited or refunded within different tax heads and subheads, while the credit ledger refers to the inflow and outflow of input tax credit. This article will briefly explain how cash balances are transferred within tax heads in the GST portal.

What is the GST Cash Ledger?

The Cash Ledger in the GST Portal maintains the amount paid by and refunded to the taxpayer. The ledger categories the amount paid into major heads (e.g., IGST, CGST, SGST, UTGST and Cess) and minor heads (e.g., tax, interest, fees and penalties), which are also present at the time of payment.

How to Transfer the Cash Ledger Balance in GST?

Under the GST Portal, a taxpayer can transfer the balance in the Cash Ledger as follows:

A. Intra-head transfers (e.g., Transfer from CGST Tax head to CGST Interest head)

B. Inter-head transfers  (e.g., Transfer from CGST Tax head to SGST Tax head)

C. Transfer of balances between two GSTINs under the same PAN.

PMT-09 is available on the GST Portal for all such transfers to be filed electronically. 

Step-by-step Procedure for Intra-Head and Inter-Head Transfer within the same GSTIN via PMT-09

1. Log in to the GST Portal using User ID & Password

2. Navigate to GST Cash Ledger: Services > Ledgers > Electronic Cash Ledger and select file GST PMT-09 for Transfer (within the same GSTIN)

3. An overview of cash balances under different major heads (e.g., IGST, CGST, SGST and Cess) and minor heads (e.g., tax, interest, fees and penalty) will be available for Transfer.

4. Depending on the requirement, select the source major head and minor head from which the balance must be transferred to the recipient major head and minor head.

5. Upon entering the required details, click on save. Accordingly, the above information will be saved as a record. It is pertinent to note that a taxpayer may add multiple transfers before filing PMT-09. If any record processed is incorrect, a taxpayer may delete it. 

6. Once all records are processed, the system will display a summary of all such records.  

7. A taxpayer can then file PMT-09 for initiating such a transfer and submit the form using EVC & DSC.

Procedure for Balances Between two GSTINs under the same PAN via PMT-09

A taxpayer must note that a transfer of cash balance within major tax heads IGST and CGST is only possible between two different GSTINs under the same PAN (for example, a company headquartered in Delhi can transfer its cash balance under CGST & IGST to its branch office in Mumbai, provided they have the same PAN).

For such transfers, a separate option exists to file PMT-09 between two GSTINs available on the Electronic Cash Ledger page. The taxpayer will have to select the transferee GSTIN.

An overview of cash balances under major and minor heads will be available. As illustrated above, depending on the requirement, select relevant source tax major and minor heads and recipient tax major and minor heads.

Once the form PMT-09 is filed and submitted, an acknowledgement number is generated, which is shared on taxpayer’s mobile number and registered email ID.

GST PMT-09 is a critical tool for correcting payment errors on the GST Portal. It avoids the need for repetitive payments and refund applications, helping taxpayers effectively manage their working capital.