Pre-Deposit Credit Ledger – SC Affirms HC Ruling

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  • Last Updated on 24 May, 2025

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GST pre-deposit Electronic Credit Ledger

Case Details: Union of India vs. Yasho Industries Ltd. - [2025] 174 taxmann.com 878 (SC)

Judiciary and Counsel Details

  • Mrs B.V. Nagarathna & Satish Chandra Sharma, JJ.
  • N. Venkatraman, A.S.G., Gurmeet Singh Makker, AOR, V.C. Bharathi, Ms Pankhuri Srivastava, Amit Sharma -II, Piyush Beriwal & Rajeev Ranjan, Advs. for the Petitioner.
  • Ms Tas Law, AOR, Abhishek A. Rastogi, Ms Trishala Trivedi, Utsav Trivedi, Ms Pooja M. Rastogi, Ms Garima Gupta & Ms Shivani Bhushan, Advs. for the Respondent.

Facts of the Case

The petitioner deposited Rs. 3.36 crores as pre-deposit using the Electronic Credit Ledger while filing an appeal under Section 107. The revenue rejected this and asked for payment via the Electronic Cash Ledger, citing non-compliance. The High Court held that as per the circular No. CBIC-20001/2/2022-GST (dated 06-07-2022), Pre-deposit under Section 107(6)(b) can validly be made using the Electronic Credit Ledger. Accordingly, the letter issued by the revenue directing the assessee to pay the pre-deposit amount through the Electronic Cash Ledger was quashed and set aside.

Supreme Court Held

The Supreme Court has dismissed the instant Special Leave Petition filed by the Department and held that the pre-deposit under Section 107(6)(b) can validly be made using the Electronic Credit Ledger.

List of Cases Reviewed

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied