Section 49 – Payment of Tax, Interest, Penalty and Other Amounts
Section 49 of CGST Act, 2017 – Payment of Tax, Interest, Penalty and Other Amounts Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Importance of Section 49 Section 49 lays down the mechanism for payment and utilisation of GST liabilities. It governs: Electronic cash ledger Electronic credit ledger Order and manner of utilisation of ITC Adjustment of tax, interest, penalty and other dues This section is the financial backbone of the GST system. 2. Electronic Ledgers under GST – Section 49(1) to 49(4) GST law provides for the following electronic ledgers: 2.1 Electronic Cash Ledger – Section 49(1) All deposits made by a person towards: Tax Interest Penalty Fee Any other amount are credited to the Electronic Cash Ledger . This ledger is maintained on the GST portal. 2.2 Electronic Credit Ledger – Section 49(2) Input Tax Credit (ITC) availed under GST is credite...