Inter head transfer for Tax paid under GST – Form GST PMT-09

To allow a registered taxpayer to transfer any amount of tax, interest, penalties, etc. that is accessible in the electronic cash ledger to the proper tax or cess head under IGST, CGST, and SGST in the electronic cash ledger, the CBIC has developed Form PMT-09 (i.e., a challan). As a result, if a taxpayer accidentally paid CGST rather than SGST, he can now correct the error by reallocating the funds from the CGST head to the SGST head using Form PMT-09. This article briefly describes How to file form PMT-09 on the GST portal, & Important Information regarding the GST PMT-09 Form.

Short Glimpse

When it becomes available on April 21, 2020, the highly awaited Form PMT-09 challan will allow taxpayers to move taxes paid under the incorrect tax heads in their computerized cash ledgers to the correct tax headings. The Electronic Cash Ledger now allows registered taxpayers to transfer any amount of tax, interest, penalty, charge, or another due from one (major or minor) head to another (major or minor) head by filing Form GST PMT-09. The availability of the revised or modified PMT-09 for the transfer of money from one GSTIN to another under the same PAN has yet to be confirmed by the GST Network.

Form PMT- 09 under GST

Form PMT 09 is a challan that is used to correct an incorrectly paid ITC by the taxpayer. If a taxpayer has mistakenly paid CGST instead of SGST, he can use Form PMT 09 to correct and reallocate the amount from the CGST head to the SGST head. This means that a registered taxpayer can move any tax, interest, or penalty available in the electronic cash ledger to the proper ledger heads (IGST, CGST, and SGST). The heads are classified as follows: The major tax categories are integrated tax, central tax, state/UT tax, and cess. Tax, interest, penalty, charge, and other minor headings.

Applicability of Form PMT- 09 under GST

All GST-registered taxpayers are eligible to use Form GST PMT-09 to transfer any balances available in the electronic cash ledger. On April 21, 2020, the GST Portal went LIVE with the ability to use PMT-09. After logging in, the taxpayer will see the choice under the electronic cash ledger tab. As a result, a taxpayer can now simply correct incorrectly paid taxes or other amounts.

The PMT-09 gained an additional use on July 5, 2022, due to CGST Notification number 9/2022 issued on the same date. A taxpayer can transfer the CGST balance in one GSTIN’s cash ledger to another GSTIN in the form of CGST or IGST in the capacity of a distinct person.

They should confirm that there is no pending tax liability for such a transfer in the transferor’s computerized liability ledger.

They can use form PMT-09 to make such transfers through the GST portal. However, the GST Network has yet to specify whether the GST system fully supports PMT-09 capability for these revisions as of July 5, 2022.

How do file form PMT-09 on GST Portal?

The following are the steps you should follow to file your PMT- 09 Form under GST:

• Step 1: Access the GST Portal.
• Step 2: Under ‘Services,’ choose ‘Ledgers,’ and then ‘Electronic Cash Ledger.’
• Step 3: On the electronic cash ledger page, choose File GST PMT 09 for the amount transfer. This GST PMT 09 Form is broken into three sections:
  • • Balance in the Cash Ledger: The available balance in the electronic cash ledger is shown in this table.
    • Cash Ledger Balance: Updated Balance Preview This table displays the revised balance in the electronic cash ledger following the revisions. The balance after shifting the money from the CGST head to the SGST head (or as applicable) is seen here, for example.
    • Make a new Record: The taxpayer is responsible for keeping this table up to date. The table has two columns: ‘Transfer amount from’ and ‘Transfer amount to.
      For instance, if the electronic ledger balance is INR 1000 and INR 500 is under the CGST head and INR 500 is under the IGST head, a taxpayer can transfer INR 500 from the IGST head to the SGST head.

• Step 4: Save the information.
• Step 5: Click the ‘Yes’ button in the confirmation box.
• Step 6: Save and review the processed data.
• Step 7: Verify the authorized signatory’s EVC or DSC.
• Step 8: Select ‘File GST PMT 09’ from the drop-down menu. 
• Step 9: Enter your OTP. 
• Step 10: Select ‘Verify.’ A successful filing confirmation message, together with the ARN, will be sent to the registered email address. The most recent Electronic Cash Ledger is available under the ‘Services’ tab.

Important Information regarding the GST PMT-09 Form

The following are some things to remember about the GST PMT- 09 Form:

• The PMT 09 form can only transfer sums that are in the electronic cash ledger. Any errors in GSTR-3B cannot be corrected using PMT 09 since GSTR-3B is non-editable.
• Any utilized amount that is not available or has been withdrawn from the electronic cash ledger cannot be transferred or reassigned using the PMT 09 form.
• Amounts can be transferred from a major to a minor head, a minor to a minor head, or even a minor to a major head. Payments can be transferred or shifted from one minor head to another under the same main head.
• The fundamental need for using PMT 09 is that the electronic cash ledger has a balance in the corresponding head from which the amount is to be transferred.
• When an incorrectly paid challan is used, this challan is useless (in GSTR 3b).
• GSTR 3b cannot be altered.
• The challan can only change the amount of tax in the cash ledger.
• Once used and deleted from the cash ledger, the amount cannot be redistributed.
• When payment is made under the incorrect heading but not used, a challan is useful.
• Only in the case of penalties do such scenarios emerge.
• When the data in the return is incorrect, the data in the challan is likewise incorrect.

Examples for better understanding of the GST PMT-09 Form

The following are the examples for a better understanding of the GST PMT-09 Form:

• Shirish has a GSTIN and was required to pay INR 1000 under the main head CGST and INR 50 as interest under a minor head. He instead paid INR 50 as CGST and INR 1000 as interest. Using the PMT-09 Form, he can correct this or change the amount from major to the minor head or vice versa.
• Rajesh has a GSTIN and must pay INR 100 in interest and INR 20 in penalties under CGST. Instead, he paid INR 20 in interest and INR 100 in penalties. This can also be accomplished by submitting a PMT 09 form and shifting the minor head interest to the minor head penalty under the common major head under CGST.

Takeaway

If the amount is present in the Electronic cash ledger, the enrolled assessee can make intra-head or inter-head transfers using Form GST PMT-09. As a result, the enrolled assessee can submit any amount of tax, interest, charge, or penalty via Form GST PMT-09 to another major or minor body as shown in the electronic cash record. If the assessee delivers the money, they use it to leave their obligations under the major and minor heads (Tax, Interest, Penalty, Fee, and Others) OR a minor head (Integrated tax, Central tax, State or UT Tax, and Cess). As a result, they propose to give the amount under the designated heading to meet their liabilities. Hence, it can be concluded that Form PMT- 09 under GST is a useful form.

Connect to experts at Legal Window for a better understanding and applicability of PMT- 09 Form under GST. Also, our Experts will be assisting you and will let you know How to file form PMT-09 on GST Portal.