Chapter IX of model GST law has been analysed and summarized by me in this slide for professionals of Indirect taxation for their easy and clear understanding of payment of tax mechanism under GST regime.

1. Comprehensive Understanding of GST law
Chapter IX – Payment of Tax
By:-
Chirag kagzi
B.com, ACA
Section 35 Payment of tax, Interest, Penalty and other amounts:
Electronic cash ledger: All payments deposited via challan under the minor head tax, interest, penalty, fees etc. of the
respective major head like CGST, SGST and IGST shall be credited under electronic cash ledger of the tax payer. Any
utilization of available credit towards payment w.r.t. any liability under GST law will be debited to such ledger. This will
display balance as on date under various major-minor head combination.
i) Any deposit made towards tax, interest, penalty, fee or any other amount by taxable person shall be credited to the
electronic cash ledger (date of credit in account of government shall be deemed to be date of deposit).
ii) Self-assessed input tax credit shall be credited to his electronic credit ledger.
iii) & iv) Amount available in electronic cash/credit ledger can be used to pay tax, interest, penalty, fee or any other
amount.
v) Credit of IGST can be utilized against payment of IGST, CGST and SGST respectively while;
Credit of CGST can be utilized towards payment of CGST and IGST respectively (and not for payment of SGST).
Credit of SGST can be utilized towards payment of SGST and IGST respectively (and not for payment of CGST).
vi) Balance in cash/credit ledger after all the payments shall be refunded.
vii) Every liability shall be recorded electronically.
viii) Dues from previous returns, self-assessed tax, dues from return of current period and any other payment like demand
are to be paid respectively.
ix) It is assumed that incidence of tax have been passed on to the recipient of goods/services unless otherwise proved.
Section 36 Interest on delayed payment of tax
i) For every late payment of dues to the government, interest is payable automatically at prescribed rates.
ii) Interest will be calculated from the first day when tax became due.
iii) For any excess claim of input tax credit, one also has to pay interest on excess amount claimed as input tax credit.
Section 37 Tax deduction at source
Tax Deduction at Source- a move that is likely to increase compliance requirements by companies, plug leakages and
boost revenue collection. The TDS Provisions were already prescribed in some of Existing VAT Laws. The Provision of
TDS was also held Valid by Allahabad High Court in case of V.K. Singhal Vs. State of U.P. (1995) 97 STC 355. Although
for Service tax it is a new concept of which idea was floated in 2011 and was shelved after opposition from the industry.
i) Department of central or state government, local authority, governmental agencies and other specified persons are
required to deduct tax at 1% from the payment made to supplier of goods/services where total value of supply (without
taxes) exceeds rs.10 lakhs.
ii) Deducted tax will be deposited with the government by the 10th of next month.
iii) Deductor shall issue a TDS certificate to the deductee.
iv) Penalty will be levied on deductor if he fails to give the TDS certificate within 5 days of crediting the TDS to the
government at rs.100 daily (maximum rs.5000).
v) Deductee shall claim the amount deducted in his electronic cash ledger.
vi) If deductor does not pay TDS to government on time, interest will be levied.
vii) Amount of default shall be calculated as per section 51.
viii) Refund of any excess deduction shall be dealt with section 38 (no refund will be granted if the tax deducted is credited
in the electronic cash ledger of the deductee).