As per Instruction No. 9 of GSTR-9, one has to pay additional tax liability shown in GSTR-9, through DRC-03 by cash only. Otherwise, one is not declaring such additional tax liability in GSTR-9, but if he voluntarily declares such tax liability u/s 73(5), then whether he can utilize ITC held in electronic credit ledger for payment of additional tax liability? If yes, then why one has to show additional tax liability in GSTR-9?

Reply—

Towards the end of the Annual return, taxpayers shall be given an option to pay any additional liability declared in this form, through FORM Drc-03. Taxpayers shall select “Annual return” in the drop down provided in FORM DRC-03. It may be noted that such liability can be paid through electronic Cash ledger only. 

However as per provision of section 49(4) the amount available in the Electronic Credit ledger may be used for making any payment towards output tax under this Act or under the Integrated Goods and Services Tax Act in such manner and subject to such conditions and within such time as may be prescribed. See Rule 88A.

While making payment through DRC-03 after selecting reason 'annual return', GST portal is also not restricting taxpayer to make payment from credit ledger.

Therefore, you can make payment through electronic credit ledger.