Introduction:
The GST Act came in force from 1st July, 2017. There were many interpretation issues with respect to the definitions, glossary and terms use in the law. Since, such definitions were adopted from various legacy laws in India prior to GST; such as Service Tax, State VAT, Central Excise Act, Luxury Tax, Entertainment Tax, etc. it was difficult to make applicable one definition for different sectors. Hence, some modifications from existing definitions were made. Therefore, it was important to established a nexus of the terms used in the GST definitions. The definition discussed here is“Electronic Credit Ledger”.
So what do you mean by “Electronic Credit Ledger”?
Section 2(46) of CGST Act, 2017 –“electronic credit ledger” means the electronic credit ledger referred to in sub-section (2) of section 49;
Conclusion:
In the Electronic Credit Ledger, all credits accured on account of inward supplies made by a taxpayer within a tax period are accumulated.The ledger is maintained Major Head-wise, i.e., IGST, CGST, SGST, and CESS.