The CBIC has introduced Form PMT-09 (i.e. a challan) to enable a registered taxpayer to transfer any amount of tax, interest, penalty, etc. that is available in the electronic cash ledger, to the appropriate tax or cess head under IGST, CGST and SGST in electronic cash ledger. Hence, if a taxpayer has wrongly paid CGST instead of SGST, he can now rectify the same using Form PMT-09 by reallocating the amount from the CGST head to the SGST head.
Introduction of Form GST PMT-09
At the time of making GST payments, there are chances of the taxable person, inadvertently, making a deposit into the wrong head. Say for example, instead of depositing INR 5,000 in IGST, the taxable person wrongly deposited the amount of INR 5,000 in SGST. Earlier, under GST law, there was no way out to rectify the mistake. Accordingly, the only one way left with the taxable person was to file a refund application in Form GST RFD-01 under the category of Excess balance in electronic cash ledger. However, the way of refund claim always leads to blockage of funds for the taxable person. In order to overcome the hurdle, vide notification no. 31/2019- Central Tax dated 28th June 2019, sub-rule (13) was inserted to rule 87 of the Central Goods and Services Tax Rules, 2017. As per the newly inserted sub-rule, the taxable person can transfer any amount of tax, penalty, interest, fee or any other amount to the integrated tax or central tax or state tax or union territory tax or cess. Such transfer is possible only in the electronic cash ledger using Form GST PMT-09. Interestingly, the above insertion was introduced on 28th June 2019 but was to be effective from the date to be notified in future. Suddenly, after a long gap of time, on 21st April 2020 Form GST PMT-09 was deployed on GST portal, however, the provisions of rule 87(13) were still not made effective. Realizing the mistake, finally, the Central Board of Indirect Taxes and Customs, vide notification no. 37/2020 – Central Tax dated 28th April 2020, made the provisions of sub-rule (13) to rule 87 effective retrospectively from 21st April 2020.
Applicability of Form PMT-09 – to whom and from when?
All taxpayers registered under GST are eligible to shift any balances available in the electronic cash ledger using Form GST PMT-09. The facility to use PMT-09 was made LIVE on the GST Portal on 21 April 2020. The option is available after the taxpayer logs in, under the electronic cash ledger tab. Thus, a taxpayer can now easily rectify wrongly paid taxes or other amounts.
The PMT-09 got an additional use from 5th July 2022 vide the CGST Notification number 9/2022 issued on the same date. A taxpayer can in the capacity of a distinct person transfer the CGST balance in one GSTIN’s cash ledger to another GSTIN in the form of CGST or IGST.
They should ensure no pending tax liability in the transferor’s electronic liability ledger for such transfer.
They can use form PMT-09 to carry out such transfers online on the GST portal. However, the GST Network is yet to clarify if the GST system fully supports the functionality of PMT-09 for these changes as of 5th July 2022.
Filing of Form GST PMT-09
The registered taxable person, willing to transfer the amount by filing Form GST PMT-09, should follow below steps- STEP 1 – Visit site / and click ‘Login’.
STEP 2 – Enter login credentials i.e., Username; Password and Characters.
STEP 3 – Navigate the path Services > Ledgers > Electronic Cash Ledger.
STEP 4 – Select ‘File GST PMT-09 for transfer of amount.
STEP 5 – Form GST PMT-09 will be displayed. The form is divided into three tables, each explained hereunder-
- ‘Cash ledger balance-available for transfer’ – here the amount available under electronic cash ledger will be auto-populated.
- ‘Cash ledger balance-preview of updated balance’ – here the details of updated balance after making the required transfer will be reflected.
- ‘Add record’ – here the taxable person is required to enter details of the amount to be transferred from the major/ minor head to major/ minor head.
STEP 7 – Click SAVE.
STEP 8 – Tick the verification check box.
STEP 9 – Select the ‘Authorized Signatory’ name from the drop-down list.
STEP 10 – Click ‘File GST PMT-09’ and submit.
FAQs
Format of PMT-09?
PMT-09 format has been modified as of 5th July 2022. It shall cover both rule 87(13) and 87(14)-GSTIN of transferee on the same PAN. For this, a new table 4A will be inserted.
Table 5 of PMT-09 addresses both minor and major heads. The taxpayer can mention the amount of tax that he wants to transfer from one head to another. The amount can be transferred from the head only if there is a balance available under that head at the time of transfer. A taxpayer can provide his GSTIN and fill in the details in Table 5- Details of the amount to be transferred from one account head to another in Form GST PMT-09.
What are the key points to note about Form GST PMT-09?
- If the wrong tax has already been utilised for making any payment, then this challan is not useful. This challan only allows the shifting of the amounts that are available in the electronic cash ledger. For instance, in case an amount has been misreported in the GSTR-3B, there is no way to rectify the same as the GSTR-3B is non-editable. In such a case, only an adjustment in the next month’s return can be made.
- The amount once utilised and removed from the cash ledger cannot be reallocated.
- Major head refers to Integrated tax, Central tax, State/UT tax, and Cess.
- Minor head refers to Tax, Interest, Penalty, Fee and Others.