Proposed amendment in Electronic Ledgers

The budget has brought in an important change on the transferring of cash balance from one head to another within the same registration or as CGST and IGST to the cash ledger of a distinct person. Here, it is important to note that a ‘distinct person’ is a person with different GSTINs but bearing the same PAN. This shall provide flexibility to taxpayers with multiple GSTINs as they can now transfer excess cash balance from one state to another. Moreover, a scenario where one GSTIN has excess balance and an output liability is being paid in another state could be avoided. Additionally, the entire process of applying for a refund and granting one can be skipped in cases where the taxpayer transfers such balance to another state to set-off liability.
Also, the law now prescribes that certain restrictions will come into play while utilising the electronic credit ledger. While these have not been specified yet, one can guess what these could be. There has been litigation on whether pre-deposit is required to be paid while filing appeal can be paid through debiting credit ledger or not. As seen in the past, the government amends law to put such litigations to rest, and using credit ledger to pay pre-deposit could be one of the restrictions.

Source - https://www.bloombergquint.com/business/budget-2022-the-top-five-gst-changes