Section 49 CGST Act 2017

[ Section 49 CGST Act 2017 Notified w.e.f 01.07.2017 vide Notification No. 9/2017 – Central Tax Dated 28th June, 2017 ]

Section 49 CGST Act 2017 explains Payment of tax, interest, penalty and other amounts and is covered in Chapter X – Payment of Tax

[Note : CGST Act 2017 also known as CENTRAL GOODS AND SERVICES TAX ACT, 2017 assented by the President of India on 12-4-2017 -An Act to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government and the matters connected therewith or incidental thereto. ]

[ Refer Note 1 and 2, 6]

Payment of tax, interest, penalty and other amounts.

49. (1) Every deposit made towards tax, interest, penalty, fee or any other amount by a person by internet banking or by using credit or debit cards or National Electronic Fund Transfer or Real Time Gross Settlement or by such other mode and subject to such conditions and restrictions as may be prescribed [ Refer rule 87 of the CGST Rules, 2017], shall be credited to the electronic cash ledger of such person to be maintained in such manner as may be prescribed[ Refer rule 87 of the CGST Rules, 2017]

(2) The input tax credit as self-assessed in the return of a registered person shall be credited to his electronic credit ledger, in accordance with ³[ section 41 or section 43A], to be maintained in such manner as may be prescribed.[ Refer rule 86 of the CGST Rules, 2017 ]

(3) The amount available in the electronic cash ledger may be used for making any payment towards tax, interest, penalty, fees or any other amount payable under the provisions of this Act or the rules made thereunder in such manner and subject to such conditions and within such time as may be prescribed.[ Refer rule 86 of the CGST Rules, 2017 ]

(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.[ Refer rule 85 of the CGST Rules, 2017 ]

(5) The amount of input tax credit available in the electronic credit ledger of the registered person on account of—

(a) integrated tax shall first be utilised towards payment of integrated tax and the amount remaining, if any, may be utilised towards the payment of central tax and State tax, or as the case may be, Union territory tax, in that order;

(b) the central tax shall first be utilised towards payment of central tax and the amount remaining, if any, may be utilised towards the payment of integrated tax;

(c) the State tax shall first be utilised towards payment of State tax and the amount remaining, if any, may be utilised towards payment of integrated tax;

⁴ [Provided that the input tax credit on account of State tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax; ]

(d) the Union territory tax shall first be utilised towards payment of Union territory tax and the amount remaining, if any, may be utilised towards payment of integrated tax;

⁵ [Provided that the input tax credit on account of Union territory tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax; ]

(e) the central tax shall not be utilised towards payment of State tax or Union territory tax; and

(f) the State tax or Union territory tax shall not be utilised towards payment of central tax.

(6) The balance in the electronic cash ledger or electronic credit ledger after payment of tax, interest, penalty, fee or any other amount payable under this Act or the rules made thereunder may be refunded in accordance with the provisions of section 54.

(7) All liabilities of a taxable person under this Act shall be recorded and maintained in an electronic liability register in such manner as may be prescribed.[ Refer rule 85 of the CGST Rules, 2017 ]

(8) Every taxable person shall discharge his tax and other dues under this Act or the rules made thereunder in the following order, namely:—

(a) self-assessed tax, and other dues related to returns of previous tax periods;

(b) self-assessed tax, and other dues related to the return of the current tax period;

(c) any other amount payable under this Act or the rules made thereunder including the demand determined under section 73  or section74 ;

(9) Every person who has paid the tax on goods or services or both under this Act shall, unless the contrary is proved by him, be deemed to have passed on the full incidence of such tax to the recipient of such goods or services or both.

Explanation.—For the purposes of this section,—

(a) the date of credit to the account of the Government in the authorised bank shall be deemed to be the date of deposit in the electronic cash ledger;

(b) the expression,—

(i) “tax dues” means the tax payable under this Act and does not include interest, fee and penalty; and
(ii) “other dues” means interest, penalty, fee or any other amount payable under this Act or the rules made thereunder.

Notes on Section 49 of CGST Act 2017

8. Circular No 98/18/2019 Dated 23rd April 2019 Seeks to clarify the manner of utilization of input tax credit post insertion of the rule 88A of the CGST Rules.

7 Also Refer Rule 88A CGST :ITC Utilization : Commentary

6 Notification No 13/2019 Central Tax : GSTR 3B Due dates For April, May and June, 2019

5. Inserted by the Central Goods and Services Tax (Amendment) Act, 2018, with effect from 01.02.2019

4. Inserted by the Central Goods and Services Tax (Amendment) Act, 2018, with effect from 01.02.2019

3. Substituted for “section 41” by the Central Goods and Services Tax (Amendment) Act, 2018, with effect from a date yet to be notified.

2. clarifying the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances. vide Circular No 41/15/2018 GST dated New Delhi, Dated the 13th April, 2018 

1  Manual filing of applications for Advance Ruling and appeals before Appellate Authority for Advance Ruling vide Circular No 25/25/2017 GST dated 21st December, 2017

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