GST Appeals
SC upholds use of input tax credit for mandatory pre-deposit in GST appeals
This story was originally published at 21:07 IST on 19 May 2025
Register to read our real-time news.Informist, Monday, May 19, 2025
NEW DELHI – The Supreme Court Monday upheld the Gujarat High Court's order that allowed companies to make a 10% mandatory pre-deposit through electronic credit ledger, which contains accumulated input tax credit, for filing an appeal under the goods and services tax laws. The apex court dismissed the appeal filed by the tax department.
In 2024, the high court had held that pre-deposit payments from electronic credit ledger was valid and sufficient compliance under Section 107(6)(b) of the Central Goods and Services Tax Act, 2017.
The case has its genesis from the tax department directing Yasho Industries Ltd. to pay INR 33.60 million as a pre-deposit for its goods and services tax appeal using only electronic cash ledger, despite having adequate input tax credit in electronic credit ledger. The high court ruled in Yasho Industries' favour, against which the tax department moved the top court.
In the electronic credit ledger, all credits accrued on account of inward supplies made by a taxpayer within a tax period are accumulated. The amount available in the electronic credit ledger can be utilised for paying off tax liabilities.
Electronic cash ledger is an account of the taxpayer maintained by the GST system reflecting the cash deposits in recognised banks and payments of taxes and other dues made by the taxpayer. The tax deducted at source and tax collected at source are also accounted for in the electronic cash ledger as cash deposits of the taxpayer.
On Monday, the shares of Yasho Industries ended 0.7% higher at INR 1,747.40 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
