GST cash ledger: GST Portal has now enabled transfer of Cash Balance from one GSTIN to another GSTIN having the same PAN by filing GST PMT-09. As per Section 49(10) of CGST Act, 2017 read with Rule 87(14) of CGST Rules, 2017, balance in cash ledger can be transferred in different state to a distinct person.
In other words, you can transfer the unutilised balance from your cash ledger to another GSTIN located in a different state. However, the GSTIN should be under the same PAN.
The option to utilize the amount in the cash ledger of one GSTIN by another GSTIN (entities having same PAN) by way of transfer through form PMT-09 has been made effective in the GST portal.
Taxpayers can transfer only unutilised central tax (CGST) and integrated tax (IGST) balances. The state tax (SGST) balances cannot be transferred. It is also important to note that you can transfer only the unutilised cash balances. The balances in your credit ledger are not eligible for transfer.
Important Points on transferring GST cash ledger balance
- Amount cannot be reallocated if utilized.
- Major head refers to- Integrated tax, Central tax, State/UT tax, and Cess.
- Minor head refers to- Tax, Interest, Penalty, Fee and Others.
- This form is only used for shifting of amount from one head to another head.
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