Pre-deposit made through E-credit ledger is valid under GST

The Hon’ble Orrisa High Court in M/s. Kiran Motors v. Addl. Commissioner of CT & GST [W.P (C) No.22817 of 2023 of August 10, 2023] set aside the appeal rejection order passed by the 1st Appellate Authority and held that a pre-deposit under GST can be made through electronic credit Ledger (“ECL”).

Facts:

M/s. Kiran Motors (“the Petitioner”) field first appeal before the 1st Appellate Authority who vide order dated March 31, 2023 (“Impugned Order”) rejected the appeal as the pre-deposit of 10% of admitted tax amount was debited through the ECL.

Aggrieved by the Impugned Order the Petitioner filed a writ before the Hon’ble Orrisa High Court and contended that the CBIC vide circular dated July 06, 2022 clarified that payment of pre-deposit can be made by using the ECL.

Issue:

Whether pre-deposit under GST can be done through E-Credit Ledger Instead of the ECL?

Held:

The Hon’ble Orrisa High Court W.P (C) No.22817 of 2023 held as under:

• Noted that, CBIC vide circular dated July 06, 2022 clarified that payment of pre-deposit can be made by using the ECL.
• Opined that, the Petitioner has already made the pre-deposit using the ECL, that will now be accepted by the Revenue Department.
• Set aside the Impugned Order, and listed the matter before the 1st Appellate Authority on September 11, 2023.

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