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EY Update
This tax alert summarises a recent ruling of the division bench of Orissa High Court.
In the writ petition, the issue involved was whether pre-deposit required as per Section 107(6) of the Odisha Goods and Services Tax Act, 2017 can be paid by debiting the electronic credit ledger (ECRL).
The petitioner contended that the amount paid as pre-deposit was a percentage of the 'output tax' and thus, balance in ECRL can be used.
The high court observed that the term 'output tax', as defined under Section 2(82) of the Act, cannot be equated with the pre-deposit required to be made under Section 107(6).
Further, Section 41(2) of the Act limits the usage to which the ECRL could be utilised. It cannot be debited for making payment of pre-deposit at the time of filing appeal.
Thus, the high court held that payment of pre-deposit cannot be made by debiting ECRL.
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