GST Ledger Balance

GST (Goods and Service Tax) is active all across india from July 1st, 2017. GST is meant to simplify indirect taxation scheme and subsumes earlier Service tax & vat regimes. Once registered with GST portal, the members can submit and see all their invoice and return details on the portal easily.

GST ledgers are an important part of overall GST workflow and allows people to easily visualize their cash and credit flow. You can find your 'GST ledger balance' on the dashboard of gst portal. This article explains how to understand this ledger balance.

Understanding GST ledger Balance

GST ledger balance can be seen on the dashboard of gst portal after successful login. A typical GST ledger looks like following:

GST ledger balance - Liability related to Return

Ledger balance of liability related to return shows your liability based on monthly record filed by you.

GST ledger balance - Cash

GST Cash ledger includes all gst tax payments including interest and penalty paid by you. It basically acts like a wallet and you can potentially add more money here than your exact GST tax dues.

GST ledger balance under cash shows the extra money paid by you which is not yet adjusted against GST taxes.

GST ledger balance - Input tax Credit

Input tax credit reflects the GST taxes paid by your suppliers or service providers for the goods and service provided to you. This credit can be used to adjust pending gst tax payments that need to be made by you.

GST ledger balance - Net Liability & Net Credit

Net liability and net return will show the adjusted credit or balance for each month.