The honourable Jharkhand High Court in the matter of M/s RSB Transmissions (India) Limited Vs. 1.Union of India through the Secretary, Ministry of Finance,Department of Revenue, New Delhi 2. The Commissioner of Central Goods and Services Tax & Central Excise, Jamshedpur 3. The Superintendent of Central Goods and Services Tax & Central Excise, Adityapur – V Range, Jamshedpur 4. Goods and Services Tax Network through its Chairman, New Delhi, has held that the e cash ledger is only a e wallet and payment to it can not be treated as discharges of GSt liability in accordance with the provisions of the GST Act and Rules.. The honourable high Court has observed as under

“The contention of the petitioner of having discharged the tax liability by mere deposit in the Electronic Cash Ledger prior to the due date of filing of GSTR-3B return would be against the scheme of GST Act and would make the working of GST regime unworkable. It can also be understood in a different way. There is no time prescribed for deposit of cash in the Cash Ledger. It, in fact, is just an e-wallet where cash can be deposited at any time by creating the requisite Challans. Since, the amount lies deposited in the Electronic Cash Ledger, a registered assesse can claim its refund any time, following the procedure prescribed under the Act and the Rules. Of course, while making refund from the Electronic Cash Ledger, the proper officer has to satisfy whether any outstanding tax liability remains to be discharged by the person concerned.”

The judgement can be accessed at :

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