Electronic Credit Ledger
Rule 86 of the CGST Rules
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The electronic credit ledger in PMT-02 holds the input tax credit claimed. It may be used only for output tax, never for interest, penalty or fees, and any wrongly re-credited amount is restored through PMT-03.
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2,514 characters, uneditedReproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.
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(1) The electronic credit ledger shall be maintained in FORM GST PMT-02 for each registered person eligible for input tax credit under the Act on the common portal and every claim of input tax credit under the Act shall be credited to the said ledger.
(2) The electronic credit ledger shall be debited to the extent of discharge of any liability in accordance with the provisions of section 49 1 [or section 49A or section 49B ].
(3) Where a registered person has claimed refund of any unutilized amount from the electronic credit ledger in accordance with the provisions of section 54 , the amount to the extent of the claim shall be debited in the said ledger.
(4) If the refund so filed is rejected, either fully or partly, the amount debited under sub rule (3), to the extent of rejection, shall be re-credited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-03 . 2 [(4A) Where a registered person has claimed refund of any amount paid as tax wrongly paid or paid in excess for which debit has been made from the electronic credit ledger, the said amount, if found admissible, shall be re-credited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-03 .] 3 [(4B) Where a registered person deposits the amount of erroneous refund sanctioned to him, –
(a) under sub-section
(3) of section 54 of the Act, or
(b) under sub-rule
(3) of rule 96 , 4 [****], along with interest and penalty, wherever applicable, through FORM GST DRC-03 , by debiting the electronic cash ledger, on his own or on being pointed out, an amount equivalent to the amount of erroneous refund deposited by the registered person shall be re-credited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-03A .]
(5) Save as provided in the provisions of this Chapter, no entry shall be made directly in the electronic credit ledger under any circumstance.
(6) A registered person shall, upon noticing any discrepancy in his electronic credit ledger, communicate the same to the officer exercising jurisdiction in the matter, through the common portal in FORM GST PMT-04 . Explanation. – For the purposes of this rule, it is hereby clarified that a refund shall be deemed to be rejected, if the appeal is finally rejected or if the claimant gives an undertaking to the proper officer that he shall not file an appeal. 1 .Inserted (w.e.f. 01.02.2019) vide Notification No. 03/2019-CT dated 29.01.2019.
What changed, and when
The amendment trail, newest first — because the version that applies to your case depends on the period.
2024-10-08 · Omitted
20/2024-CTdated08
Omitted " in contravention of sub-rule (10) of rule 96 " vide Notification No. 20/2024-CT dated 08.10.2024.
2022-07-05 · Inserted
14/2022-CTdated05
Inserted vide Notification No. 14/2022-CT dated 05.07.2022.
2020-03-23 · Inserted
16/2020-CTdated23
Inserted vide Notification No. 16/2020-CT dated 23.03.2020.
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Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.
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