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.
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.
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.
Illustration
Mr A. had to pay Rs.100 as Central Tax under the major head and Rs.50 as interest under the minor head and he wrongly paid Rs.50 under the Central tax head and Rs.100 as interest under the minor head. In this case, he can file PMT-09 to shift the amount from the major head (i.e. Central tax) to the minor head (i.e. interest). This shifting of the amount can be done from minor head to major head as well. An amount can also be transferred from one minor head to another minor head under the same major head. For example, the case of interchange of interest and penalty amount under Central Tax can also be rectified by filing PMT-09.
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.
Below is the format of PMT-09 prior to insertion of table 4A:
After filing in the details, a taxpayer can Verify the details and sign the same.
To learn the detailed steps to use the PMT-09 facility on the GST portal, read our article on ‘How to file PMT-09 on the GST portal?’