PMT-09: Transfer wrongly paid GST into Correct Head

CBIC had recently introduced Form PMT-09 for transfer of excess balance in cash ledger to another heads if a registered person had paid the amount in wrong head. However facility of Form PMT-09 was not active earlier, only the provisions were provided in the act and rules. Now GST Portal has activated the functionality of the form wherein it can be filed by the registered persons to transfer such wrongly paid taxes, fees or penalties into correct heads.

Here are few Questions on PMT-09

1 What was the need to introduce PMT-09?

Earlier, if the registered person wrongly makes payment in a particular major head; let’s say IGST instead of CGST and SGST, then taxpayer could neither use that excess balance in that head nor transfer to the correct head i.e. CGST and SGST.

Instead the assesse had to make payment again in correct ledger, and claim either refund of the excess balance in cash ledger or wait for next periods to offset that balance with future liability in same head. This resulted in blockage of the working capital of the assesse. Everybody knows getting refunds from the department is not an easy task at all. Therefore it resulted in blockage of working capital thereby causing a lot or inconvenience to registered persons.

2 How PMT-09 is applicable?

Any registered taxpayer can avail this option for transferring balance in the electronic cash ledger using this option PMT-09. Form can only be filed by transferring amount from one major head to another major heador minor head and vice versa from minor head to another minor head or major head.

3 Can utilized amount be transferred through PMT-09?

No, Amount can only be transferred if there is available balance in the cash ledger at the time of transfer. Registered persons cannot transfer the amount after utilizing and offsetting the same for paying any GST liability.

4 Can transferred amount be recovered back?

No, there is not any such option.Once transferred amount and removed from cash ledger cannot be reallocated again.

5 What is the procedure to file PMT-09?

Detailed Procedure to File PMT-09

In conclusion, the introduction of Form PMT-09 by the CBIC and its activation on the GST Portal provides a much-needed solution for registered taxpayers who have made payments in the wrong heads. This functionality allows for the transfer of excess balances in the cash ledger to the correct heads, eliminating the need for additional payments or waiting for refunds. It streamlines the process and prevents blockage of working capital, offering greater convenience to registered persons.

"Take advantage of the newly activated Form PMT-09 on the GST Portal and easily transfer wrongly paid taxes, fees, or penalties to the correct heads. Don't let working capital get blocked, file PMT-09 now!" To connect with us, Mail at info@manishanilgupta.com

Disclaimer: The information provided in this blog is for general purposes only and should not be considered as professional advice