Rules 87 and 88 of the CGST Rules, 2017: The Electronic Cash Ledger and the Identification Number for Each Transaction

Rules 87 and 88 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.

Rule 87 of the Central Goods and Services Tax Rules, 2017 governs the electronic cash ledger: how it is kept in FORM GST PMT-05, how a challan in FORM GST PMT-06 is generated, the modes of deposit, what happens when the bank is debited but no Challan Identification Number follows, and how amounts move between heads. Rule 88 requires a unique identification number for each debit or credit to the ledgers.

This article follows the CGST Rules, 2017 as amended up to 31 October 2025 in the compilation consulted; notifications issued after that date should be checked.

The cash ledger is kept in FORM GST PMT-05. A deposit starts with a challan in FORM GST PMT-06, valid for fifteen days, paid through the modes in rule 87(3); over the counter, the limit is ten thousand rupees per challan per tax period, with exceptions. The amount is credited on receipt of the Challan Identification Number from the collecting bank. A mismatch is represented in FORM GST PMT-07; transfers between heads are in FORM GST PMT-09. Rule 88 gives a unique identification number to each debit or credit.

The section behind the rules

Rule 87 is made under sub-section (1) of section 49 of the CGST Act, 2017, which provides for the electronic cash ledger: see section 49 to 53: payment and electronic ledgers and electronic ledgers under section 49 and the PMT forms. If you want your deposits and returns kept in step, our GST return filing service can handle both. Rules 88A to 88D, which follow rule 88, have their own posts: rule 88A, rule 88B, rule 88C and rule 88D.

Rule 87(1) and (2): the ledger and the challan

• Sub-rule (1). The electronic cash ledger is maintained in FORM GST PMT-05 for each person liable to pay tax, interest, penalty, late fee or any other amount, on the common portal, for crediting the amount deposited and debiting the payment towards tax, interest, penalty, fee or any other amount.
• Sub-rule (2). Any person, or a person on his behalf, generates a challan in FORM GST PMT-06 on the common portal and enters the details of the amount to be deposited. The proviso, inserted by Notification No. 22/2017-Central Tax dated 17.08.2017, says the challan "shall be valid for a period of fifteen days". An omitted proviso is shown as "[****]" below it.

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Rule 87(3): modes of deposit

The deposit is made through any of the following modes:

Clauses (ia) and (ib) were inserted by Notification No. 14/2022-Central Tax dated 05.07.2022.

The first proviso says the ten thousand rupee limit on an Over the Counter payment does not apply to a deposit by: (a) Government Departments or any other deposit by persons as may be notified by the Commissioner (check the notification); (b) a proper officer or other officer authorised to recover outstanding dues from any person, whether registered or not, including recovery through attachment or sale of movable or immovable properties; or (c) a proper officer or other officer authorised, for amounts collected by cash, cheque or demand draft during any investigation or enforcement activity or any ad hoc deposit.

The second proviso lets a person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient referred to in section 14, or a person supplying online money gaming from a place outside India to a person in India as referred to in section 14A, of the Integrated Goods and Services Tax Act, 2017, also make the deposit through international money transfer through the Society for Worldwide Inter bank Financial Telecommunication payment network, "from the date to be notified by the Board". No date is printed, so check whether it has been notified. The reference to section 14A was added by Notification No. 51/2023-Central Tax dated 29.09.2023, with effect from 01.10.2023, as the footnote records.

The Explanation: for making payment of any amount indicated in the challan, the commission, if any, payable in respect of such payment shall be borne by the person making the payment.

Rule 87(4) to (8): unregistered persons, mandate form, Challan Identification Number

• Unregistered persons (4). Any payment by a person not registered under the Act is made on the basis of a temporary identification number generated through the common portal "as per rule 16A". The footnote to these words says they were inserted by Notification No.07/2025-CT dated 23.01.2025, "w.e.f. a date yet to be notified". Give no date; check whether one has been notified.
• Mandate form (5). Where payment is by National Electronic Fund Transfer, Real Time Gross Settlement or Immediate Payment Service from any bank, the mandate form is generated along with the challan on the common portal and submitted to the bank. The proviso: the mandate form is valid for fifteen days from the date of generation of the challan.
• Challan Identification Number (6). On successful credit to the concerned government account maintained in the authorised bank, a Challan Identification Number is generated by the collecting bank and indicated in the challan.
• Credit (7). On receipt of the Challan Identification Number from the collecting bank, the amount is credited to the electronic cash ledger of the person on whose behalf the deposit was made and the common portal makes a receipt available.
• Mismatch (8). Where the bank account of the person, or the person depositing on his behalf, is debited but no Challan Identification Number is generated, or it is generated but not communicated to the common portal, he may represent electronically in FORM GST PMT-07 through the common portal to the bank or electronic gateway through which the deposit was initiated. The proviso, inserted by Notification No. 26/2022-Central Tax dated 26.12.2022, says that where the bank fails to communicate the details, the ledger may be updated on the basis of the e-Scroll of the Reserve Bank of India where its details conform to the challan in FORM GST PMT-06.

Rule 87(9) to (12): TDS and TCS credit, refund, discrepancy

• Sub-rule (9). Any amount deducted under section 51 or collected under section 52 and claimed by the registered taxable person from whom it was deducted or collected is credited to his electronic cash ledger.
• Sub-rule (10) and (11). Where a person claims refund of any amount from the cash ledger, the amount is debited; if the refund is rejected fully or partly, the amount debited, to the extent of rejection, is credited to the cash ledger by the proper officer by an order in FORM GST PMT-03.
• Sub-rule (12). A registered person noticing any discrepancy in his cash ledger communicates it to the officer exercising jurisdiction through the common portal in FORM GST PMT-04.

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Rule 87(13) and (14): transfers

• Sub-rule (13). A registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the cash ledger to the cash ledger for integrated tax, central tax, State tax or Union territory tax or cess in FORM GST PMT-09. The footnote says it was inserted by Notification No. 31/2019-Central Tax dated 28.06.2019, with effect from 21.04.2020 as notified by Notification No. 37/2020-Central Tax dated 28.04.2020.
• Sub-rule (14). The same transfer may be made to the cash ledger for central tax or integrated tax of a distinct person as specified in sub-section (4) or sub-section (5) of section 25, in FORM GST PMT-09. The proviso: no such transfer is allowed if the registered person has any unpaid liability in his electronic liability register (rule 85).
• Explanations 1 and 2. A refund is deemed to be rejected if the appeal is finally rejected; Explanation 2 adds the undertaking not to appeal, as in rule 86.

Rule 88: identification number for each transaction

Rule 88 has three sub-rules:

1. A unique identification number is generated at the common portal for each debit or credit to the electronic cash or credit ledger.
2. The unique identification number relating to discharge of any liability is indicated in the corresponding entry in the electronic liability register.
3. A unique identification number is generated at the common portal for each credit in the electronic liability register for reasons other than those covered under sub-rule (2).

Who does what, by when

A worked example

Banyan Textiles, an invented registered person, wants to deposit fifty thousand rupees (assumed) towards tax. It generates a challan in FORM GST PMT-06, valid for fifteen days, and pays by Internet Banking through an authorised bank. The collecting bank generates a Challan Identification Number, and on receipt the amount is credited to Banyan's electronic cash ledger. A second deposit leaves Banyan's bank account debited, but no Challan Identification Number reaches the common portal; Banyan represents in FORM GST PMT-07 to the bank through which the deposit was initiated. Had Banyan chosen the Over the Counter mode, the deposit would have to stay within ten thousand rupees per challan per tax period unless a proviso exception applied.

Points to watch

• Two fifteen-day periods. The challan and the mandate form are each valid for fifteen days.
• Over the counter limit. Ten thousand rupees per challan per tax period, with the exceptions in the first proviso.
• Dates to be notified. The SWIFT route and the words "as per rule 16A" in sub-rule (4) both carry a date still to be notified; check before relying on them.
• Unpaid liability bars PMT-09 to a distinct person. Sub-rule (14) proviso.
• Not for refunds from the credit ledger. That is rule 86.

Need help with deposits and returns?

Payment problems often start with a challan that lapsed or a mismatch nobody followed up. We check your cash ledger entries against your returns and prepare the representation where needed. See our GST return filing service.

Key takeaways

• The cash ledger is kept in FORM GST PMT-05; the challan is FORM GST PMT-06, valid for fifteen days.
• Over the Counter payments are limited to ten thousand rupees per challan per tax period, with the exceptions in the first proviso.
• The ledger is credited on receipt of the Challan Identification Number; a mismatch is represented in FORM GST PMT-07.
• Transfers between heads are in FORM GST PMT-09; to a distinct person only if no unpaid liability is in the register.
• Rule 88 gives a unique identification number to each debit or credit.

Read next

• Rule 85 of the CGST Rules, 2017: the electronic liability register
• Rule 86 of the CGST Rules, 2017: the electronic credit ledger
• Rule 88A: order of utilisation
• Electronic ledgers under section 49 and the PMT forms

Disclaimer: Based on the Central Goods and Services Tax Rules, 2017 and the GST Acts as amended up to 31 October 2025 in the compilation consulted, read with the Finance Act, 2026 where this article says so, as consulted on 2 October 2026. Notifications, circulars and amendments issued after that date, the forms on the common portal and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.