| Electronic cash ledger | Electronic credit ledger |
| 1.Can be used for payment of tax, interest, penalty and other amounts | Can be used only for payment of output tax |
| 2.Credit to the ledger will be through payment vide Challans | Credit to the ledger will be through input tax credit claimed as per FORM GSTR-2 (inward return) |
| 3.Refund for excess balance in the cash ledger can be applied through GSTR-03 or 04 or 07 | Refund for excess balance in credit ledger may be refunded only though the forms specified |
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTY AND OTHER AMOUNTS : FAQ NO. 19)