GST Pre-deposit through Personal Ledger Account Held Valid: Allahabad HC Follows Madras HC Ruling in...

The Allahabad High Court has held that the mandatory pre-deposit for filing a GST appeal can be paid using the funds available in the assessee's electronic credit ledger. The court followed the precedent set by the Madras High Court in the Ford India case. The GST department had contested this, arguing that the pre-deposit must be paid in cash. However, the High Court observed that the electronic credit ledger is a recognized mode of payment for output tax, and the pre-deposit is essentially a part of the tax liability. Therefore, restricting the use of the credit ledger for this purpose would be contrary to the spirit of the GST law. This ruling provides significant relief to businesses, as it allows them to use their accumulated Input Tax Credit for making the pre-deposit, thereby easing their cash flow burden while pursuing their statutory right to appeal.