Chapter VIII - Apportionment of tax and settlement of funds
Section 17A
Section 17A: Transfer of certain amounts
Section 17A covers the government-side settlement when an amount is transferred from the electronic cash ledger under the IGST Act to the electronic cash ledger under a State GST Act or the UTGST Act. The Government must transfer an equal amount to the State tax or Union territory tax account, as prescribed.
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Need advice on Section 17A?
This article is for general information. Refer to the Integrated Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
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.
Introduction
Section 17A was inserted by section 114 of the Finance (No. 2) Act, 2019, which came into force on 1 January 2020 under Notification No. 01/2020-Integrated Tax. It deals with fund settlement between governments, not with the taxpayer's right to make a cash-ledger transfer.
Key takeaways
Cash-ledger transfers
The trigger is a transfer from the IGST electronic cash ledger to the electronic cash ledger under the State GST Act or UTGST Act.
Matching transfer of funds
The Government must transfer an equal amount to the State tax account or the Union territory tax account.
Manner and time prescribed
The transfer is made in the manner and within the time prescribed by rules.
Why the provision exists
Balances in a taxpayer's electronic cash ledger are held head-wise. If an amount deposited as integrated tax is moved to the State tax or Union territory tax head, the money collected by the Centre as IGST has to follow it. Section 17A requires that fund transfer.
Whether and how a taxpayer may move cash-ledger balances is governed by the CGST Act's payment provisions as applied, and by the rules and portal. Section 17A only addresses the transfer between government accounts.
Commencement
Section 114 of the Finance (No. 2) Act, 2019 (23 of 2019) inserted Section 17A. Notification No. 01/2020-Integrated Tax appointed 1 January 2020 as the date on which section 114 came into force.
Practical checklist
Do
- Use the current CGST payment provisions and rules to check whether a particular cash-ledger transfer is allowed.
- Keep portal acknowledgements for any cash-ledger transfer between tax heads.
Frequently asked questions
Does Section 17A let me move my IGST cash balance to SGST?
Section 17A deals with the Government's matching transfer of funds once such a ledger transfer happens. The taxpayer-side permission and procedure come from the payment provisions and rules.
When did Section 17A start?
On 1 January 2020, when section 114 of the Finance (No. 2) Act, 2019 was brought into force by Notification No. 01/2020-Integrated Tax.
Need help applying this provision to your situation?
Contact BizeneedLast updated 11 October 2026