The Goods and Service Tax Network has now enabled the option on the GST portal, to transfer the amount available in their electronic cash ledger from one GSTIN to another GSTIN of the same PAN. The transfer of funds can be made using Form GST PMT-09.

Background:

The Finance Bill, 2022 has given relief to the taxpayers by allowing to transfer the amount available in their electronic cash ledger from one GSTIN to another GSTIN of the same PAN. However, such amount cannot be transferred if there is any unpaid liability in the electronic liability register of the transferor. This amendment was made effective w.e.f. 5th July, 2022 vide Notification No. 14/2022-Central Tax dated 05.07.2022, by inserting sub-rule (14) under Rule 87 of the CGST Act, 2017. 

The Notification No. 14/2022-Central Tax dated 05.07.2022 can be accessed at https://taxo.online/wp-content/uploads/2022/07/14_2022_CT_Eng.pdf