Section 53A is the accounting counterpart of section 49(10). When a taxpayer moves cash from its CGST head to its SGST or UTGST head, the money already received by the Centre is passed on to the State or Union territory.
Key points
- Under section 53A of the CGST Act, 2017, where an amount is transferred from the electronic cash ledger under the CGST Act to that under a State or UT GST Act, the Government transfers an equal amount to the State or UT tax account.
- It was inserted by the Finance (No. 2) Act, 2019 with effect from 01.01.2020, alongside section 49(10).
The provisions
53ATransfer of certain amounts
Statutory text
Where any amount has been transferred from the electronic cash ledger under this Act to the electronic cash ledger under the State Goods and Services Tax Act or the Union territory Goods and Services Tax Act, the Government shall, transfer to the State tax account or the Union territory tax account, an amount equal to the amount transferred from the electronic cash ledger, in such manner and within such time as may be prescribed.]
1. Inserted by s. 102 of The Finance (No. 2) Act, 2019 (No. 23 of 2019) - Brought into force w.e.f. 01st January, 2020 vide Notification No. 1/2020-C.T., dated 1-1-2020).
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- Can a CGST cash balance be moved to SGST?
- Yes. Section 49(10) of the CGST Act allows the transfer in Form PMT-09, and section 53A makes the Centre pass the amount to the State.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
Transfers by the taxpayer are made in Form PMT-09 under section 49(10); section 53A ensures the money follows the ledger entry between governments.