Hello, If we have more tax liability while filing GSTR 9 or 9C then can we use ITC available in Electronic Credit Ledger for paying the excess tax liability? Thank you!

Reply— As per instruction available for filing GSTR-9, towards the end of the 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.

And as per instruction available for filing GSTR-9C, towards the end of the return, taxpayers shall be given an option to pay any additional liability declared in this form, through FORM DRC-03. Taxpayers shall select “Reconciliation Statement? in the drop down provided in FORM DRC-03. It may be noted that such liability shall be paid through electronic cash ledger only.

Thus, taxpayer cannot use amount available in electronic credit ledger for payment of additional liability due to GSTR-9 or GSTR-9C. However option of credit ledger is available while filing DRC-03 which should not be there.