Supreme Court Upholds Gujarat HC Verdict: Pre-Deposit via Electronic Credit Ledger Valid for GST Appeals, Rejects Dept’s SLP

The Supreme Court has upheld a ruling by the Gujarat High Court, affirming that taxpayers are indeed permitted to use the funds available in their electronic credit ledger for making the mandatory pre-deposit required when filing appeals under the Goods and Services Tax (GST) regime. The apex court rejected the challenge raised by the tax department on this matter, thereby providing clarity and certainty to taxpayers regarding the modes of payment acceptable for pre-deposits. This decision is taxpayer-friendly as it allows businesses to utilize their existing GST credits to meet the pre-deposit obligation, potentially reducing the immediate cash outflow required for pursuing appeals.