Finally, the wait is over for ‘Form GST PMT-09’ which has been made available on common portal for transfer of balance appearing in one head of tax to another head of Electronic Cash Ledger. It would largely reduce the need of filing refund by taxpayers in case of payment of tax in wrong head and solve the liquidity crunch thereof.

What is PMT-09?

Recently introduced Form PMT-09 is useful for shifting wrongly paid input tax credit. This enables a registered taxpayer to transfer any amount of tax, interest, penalty, etc which is available in the electronic cash ledger to the appropriate tax or cess head under IGST, CGST and SGST in the electronic cash ledger.

Applicability of Form PMT-09

All taxpayers registered under GST are eligible to sift any balances available in the electronic cash ledger using this Form. After login, the taxpayer can easily rectify wrongly paid taxes or other amounts.

What is the important consideration for adjustment through GST PMT-09?     

  • Inter-head adjustment is allowed e.g. balance appearing in CGST-Interest can be transferred to any head i.e. Tax, Interest, Penalty, Fee, etc. of SGST/ UTGST, IGST or Cess
  • Intra-head adjustment is allowed e.g. balance appearing in CGST-Interest can be transferred to any other minor head of CGST i.e. Tax, Penalty, Fee, etc.
  • No parallel adjustment is allowed from one head to another head in single application e.g. transfer from IGST to CGST and CGST to IGST is not possible simultaneously
  • The amount once utilized and removed from cash ledger cannot be reallocated.
  • Not possible to edit GSTR 3B.