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How to Process Liability Payments Properly

Paying GST is heavily regimented. Follow these steps to offset ITC correctly before deploying cash:

Step 1: IGST First - ITC of IGST must be exhausted fully first against IGST liability, and then against CGST/SGST in any proportion. You cannot use CGST/SGST ITC if IGST ITC remains.
Step 2: CGST and SGST Separation - CGST credit can ONLY be offset against CGST and IGST liability. Cross utilization between CGST and SGST is strictly prohibited.
Step 3: Generate PMT-06 - After offsetting ITC, if a net liability stands, navigate to Services > Payments > Create Challan. Input the amounts explicitly into the correct major (IGST/CGST) and minor heads (Tax, Interest, Penalty).
Step 4: Deposit & File - Transfer via NEFT/Netbanking. Once the Cash Ledger reflects the balance, proceed to GSTR-3B execution to "Make Payment/Post to Ledger". Only then is the tax legally paid.

The Three Core Ledgers

Form / Ledger	Purpose	Mechanism
PMT-01	Electronic Liability Ledger	Records all liabilities, interest, and penalties.
PMT-02	Electronic Credit Ledger	Records ITC available from purchases (from GSTR-2B).
PMT-05	Electronic Cash Ledger	Functions as an e-wallet. Records cash deposited via challan.
PMT-06	Payment Challan	Generated to deposit funds into the cash ledger.
PMT-09	Ledger Transfers	Used to transfer erroneous cash deposits between CGST/SGST/IGST heads.

How to Process Liability Payments Properly

Paying GST is heavily regimented. Follow these steps to offset ITC correctly before deploying cash:

Step 1: IGST First - ITC of IGST must be exhausted fully first against IGST liability, and then against CGST/SGST in any proportion. You cannot use CGST/SGST ITC if IGST ITC remains.

Step 2: CGST and SGST Separation - CGST credit can ONLY be offset against CGST and IGST liability. Cross utilization between CGST and SGST is strictly prohibited.

Step 3: Generate PMT-06 - After offsetting ITC, if a net liability stands, navigate to Services > Payments > Create Challan. Input the amounts explicitly into the correct major (IGST/CGST) and minor heads (Tax, Interest, Penalty).

Step 4: Deposit & File - Transfer via NEFT/Netbanking. Once the Cash Ledger reflects the balance, proceed to GSTR-3B execution to "Make Payment/Post to Ledger". Only then is the tax legally paid.

Why Handle Payments Through Us?

Error Mitigation

Paying tax into the wrong head locks your money. We ensure PMT-09 prevents capital trapping.

Optimal Offsets

Strategic IGST offsets that maximize working capital fluidity over the fiscal year.

Refund Speed

Expert execution of RFD-01 ensuring rapid turnaround from jurisdictional officers.

GST Payments & Refunds

The Three Core Ledgers

How to Process Liability Payments Properly

Ledger Execution Services

Execution Prerequisites

Why Handle Payments Through Us?

Error Mitigation

Optimal Offsets

Refund Speed

Stuck with Frozen Working Capital?

GST Payments & Refunds

The Three Core Ledgers

How to Process Liability Payments Properly

Ledger Execution Services

Execution Prerequisites

Why Handle Payments Through Us?

Error Mitigation

Optimal Offsets

Refund Speed

Stuck with Frozen Working Capital?