What is the Electronic Credit Ledger in GST? How to Claim Refunds?
AuthorMehul Jagwani
Reviewed ByCA Ajay Savani
Have you ever stared at your GST portal dashboard, wondering where all those input tax credits from your suppliers are hiding? You're not alone. You might be flipping through invoices to calculate input tax credits. Honestly, you don’t have to do so. That’s where the electronic credit ledger comes in. If you don't know what its meaning is, or how it works, don’t worry. You don’t have to panic. We are here for you.
In this blog, we will discuss what an electronic ledger is, how to use it, and the difference between an electronic credit ledger and an electronic cash ledger.
What is an Electronic Credit Ledger in GST?
Electronic Credit Ledger is an online ledger on the GST portal, the sole purpose of which is to track your available Input Tax Credit (ITC). You can use this credit to offset the amount of tax you pay to the government on future sales.
In simple words, the Electronic Credit Ledger maintains an account of the tax credits that you have earned, which you can offset to settle GST liabilities. Provided you have purchased raw materials or services and paid GST on them, then it is treated as ITC, and once accepted, it is reflected in your account.
For example:
Assume that you bought raw materials of ₹1,00,000 and paid ₹18,000 GST on the same. Assuming that you sell your finished goods at a price of ₹1,50,000, including ₹27,000 GST, you are able to pay part of the ₹27,000 liability using your ₹18,000 ITC. One can pay the balance of ₹9,000 through the electronic cash ledger.
How to Download the Electronic Credit Ledger in GST
You may need to share the data of the electronic credit ledger with your accountant or CA for auditing purposes. Here is how you can download the same:
Step 1: Access the GST Portal - Go to Services → Ledgers → Electronic Credit Ledger.
Step 2: Choose the period you want to download (for example, April to June 2025).
Step 3: Click on “Download as PDF” or “Download as Excel.”
The downloaded file will give you details of transaction-wise data of ITC utilisation and balances.
How to Use Electronic Credit Ledger in GST.
It is not rocket science to use the Electronic Credit Ledger, although it may seem to be. Now, shall we go through a step-by-step process to use the electronic credit ledger in GST:
Step 1: Access the GST Portal - Go to www.gst.gov.in and log in with your credentials.
Step 2: Locate the Ledgers Section - Log into the system, then Services > Ledgers > Electronic Credit Ledger.
Step 3: Check Your ITC Balance - You will get available credits, provisional credits and blocked credits. Ensure that you have eligible ITC to use- blocked credits cannot be used unless unblocked.
Step 4: Pay GST via Offset - You can pay your GST liability using the credits in the ledger by using the portal when you file returns (such as GSTR-3B).
Claiming GST Refund from Electronic Credit Ledger
Here is the step-by-step process to claim a GST refund from the electronic credit ledger.
Step 1: Access GST Portal> Services > Refunds > Application of Refund.
Step 2: Complete Pre-application Form - Mention the type of refund: excess balance in Electronic Credit Ledger or any specific situation (exports, SEZ, inverted tax structure).
Step 3: Post Supporting Documents - You may require invoices, returns or statements confirming your refund request.
Step 4: Submit the Refund Application (Form RGD-01) - Check twice all the details; file with your DSC (Digital Signature Certificate) or EVC (Electronic Verification Code).
Step 5: Monitor the Application - You will receive an Application Reference Number (ARN), and you will have to monitor the status.
Difference Between Electronic Credit Ledger and Electronic Cash Ledger
| Basis | Electronic Credit Ledger | Electronic Cash Ledger |
|---|---|---|
| Source of Funds | Input Tax Credit (ITC) from your purchases | Cash deposited by you via challan (Form GST PMT-06) |
| Purpose | Used only to pay output GST liability | Used to pay taxes, interest, penalty, or fees |
| Refund Possible? | Yes, in specific cases (like exports, inverted tax structure) | Yes, for excess balance |
| Type of Account | Acts like a digital credit card for GST | Acts like a current account |
| Example | You claim ITC of ₹10,000, reflected here. | You pay ₹10,000 through challan, reflected here. |
Closing Notes
We hope that after reading this blog, the electronic credit ledger is not just a mere tab on the GST Portal for you. Actually, it is a buffer against paying GST returns. Every time you claim ITC, the ledger works in the backend and saves credits for you to offset against the tax payable.
If you are struggling with GST return filing, looking for a simple and beginner-friendly solution, look no further; Munim GST Return Filing software is here to help you. Sign up now and experience the Munim magic.
Frequently Asked Questions
1. An electronic cash ledger account is which type of account?
It’s similar to a current account. You deposit cash through challans, and the balance is used to pay taxes, interest, or penalties on the GST portal.
2. Electronic credit ledger in GST meaning in Hindi
इलेक्ट्रॉनिक क्रेडिट लेजर का मतलब होता है — वह डिजिटल खाता जिसमें आपकी खरीदी गई वस्तुओं या सेवाओं पर चुकाए गए जीएसटी की राशि जमा होती है। इसे आप अपनी आउटपुट टैक्स देनदारी चुकाने में उपयोग कर सकते हैं।
3. What is an electronic cash ledger in GST?
It keeps the record of cash payments you pay against your GST liabilities. It reflects any amount you deposit using a challan.
4. Can I transfer the balance between cash and credit ledgers?
No, the balances cannot be interchanged.
5. Can ITC from one GSTIN be used for another?
No, each GSTIN maintains a separate ledger. Cross-utilisation between registrations is not allowed.
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