No. The taxpayer cannot claim a refund of the balance available in the E-Credit Ledger. The balance can be utilized to pay tax liability under GST. The balance cannot be used for paying interest, late fee, penalty etc.


Refund of balance in e-credit ledger can be claimed in the following cases:



  • If Input Tax Credit has been accumulated due to the export of goods and/or services

  • If Input Tax Credit has been accumulated due to the rate of tax on outward supplies being lower than inward supplies


Read more - What is an E-Credit Ledger under GST?