M/s. Blue Moon & Co. have defaulted in filing the return under section 39 of the CGST Act, 2017 i.e. GSTR-3B for the month of March within the…

Section 49 (3) of the CGST Act, 2017 provides that the amount available in the electronic cash ledger may be used for making any payment towards tax, interest, penalty, fees or any other amount payable under the provisions of this Act or the rules made there under in prescribed manner. Further, section 49 (4) provides that the amount available in the electronic credit ledger may be used for making any payment towards output tax under this Act or under the IGST Act, 2017 in prescribed manner. Accordingly, as per the combined reading of the above provisions, late fees shall be paid only through electronic cash ledger and payment of the same is not possible through electronic credit ledger. Thus, contention of the accountant of M/s. Blue Moon & Co., is not correct and the amount of late fee shown on the common portal has to be deposited in Electronic Cash Ledger under appropriate minor head, through any of the specified modes.