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GST

GST Online Payment Process

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What Payments Are To Be Done Under GST? 

As India moves towards digitization, GST payment has facilitated collecting taxes easily and systematically. All taxpayers will receive three electronic ledgers under the GST regime, namely the E-cash Ledger, the E-credit Ledger, and the E-liability Ledger, via their GST profile.

The Central GST (CGST, which goes into the Central Government’s account) and the State GST (SGST, which goes into the State Government’s account) are the taxes paid for any intra-state supply under the GST regime. Any inter-state supply will be subject to Integrated GST (IGST), including CGST and SGST components.

In addition, Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) will be required to be paid to the government account by specific categories of registered persons (TCS). Additionally, Interest, Penalty, Fees, and any other payments will be required which are applicable.

Who Should Make The GST Payment? 

GST is generally levied on the supplier of goods or services. However, in certain circumstances, such as imports or other notified supplies, the recipient may be held liable under the reverse charge. Additionally, in some instances, the third party bears the financial responsibility (e-commerce operator for TCS or Government Department for TDS).

According to existing GST payment rules, monthly GST returns filed online are valid only when all outstanding taxes have been paid. As a result, you won’t be able to file GST returns for May if you first pay GST for April. In late payment of GST dues, an interest rate of 18 percent per annum is charged to the balance due computed from the due date. It’s critical to understand the GST online payment system and pay it online if you want to avoid late payment penalties.

How to Make GST Online Payment:

Business owners and self-employed professionals are obligated to pay their taxes at a specific time of year. They must first register their business for GST and then make any required payments.

There are two ways to pay GST: online or offline. To make an Online GST payment, one can use NEFT/RTGS or net banking.

i) Through Net banking:-

Businesses and individuals registered for GST payments can use Net banking services to make payments from anywhere in the country. Complete the GST process flow using your personal or corporate account.

  1. Go to www.gst.gov.in to access the official GST website.
  2. To proceed, enter your username and password on the homepage.
  3. Select the services > payments > create Challan tabs from the GST page. Complete all necessary details and then continue.
  4. To access previously created Challans, navigate to services > payments > saved Challan.
  5. Then, from the drop-down menu, choose a payment method:
  • Electronic payment
  • Transfer via NEFT/RTGS
  • It’s available over the counter.
  1. Choose “E-payment” as your first option.
  2. After you’ve filled in all of the details, click the option to “generate Challan”.
  3. Proceed to the next step and select Net banking as your E-payment method.
  • To begin, choose the bank with which you want to make a GST payment.
  • Check the GST payment rules terms and conditions and click the button to confirm your agreement.
  • Now, click the Make Payment tab.
  • Make the GST online payment by logging into your net banking account using your bank credentials.
  1. When the GST payment process is complete, the payment status will be displayed on the portal. The applicant may save the Challan for future reference.

ii) Online GST Payment via NETF/RTGS:-

  1. Proceed by visiting the GST website portal at www.gst.gov.in and entering your username and password.
  2. Select the following details from the menu: services >payments > Challan history.
  3. The Challan can be downloaded by selecting the button Challan number CPIN.
  4. Now enter the beneficiary’s information, along with the account number and IFSC code.
  5. Transfer the GST Challan payment through NEFT/RTGS to the beneficiary added to a list after adding the Challan as a beneficiary.
  6. Within 2-3 business hours, the amount will be reflected in the GST.
  7. The payment status will now be displayed on the page. Download and print this page for future reference.

How to Calculate Interest on Late Payment of GST:

Late fees and interest are significant components of the GST payment because they are incurred when businesses fail to submit or file GST returns on time.

Interest is charged on GST liabilities that are not paid on time. Every taxpayer who:

  • Makes a late GST payment, that is, one that is paid after the due date.
  • Claims an excess input tax credit
  • Reduces the liability for extra output taxes

If GST is not paid by the due date for filing the return, the following interest rates must be paid:

ParticularsInterest Rate
Tax payment after the due date18% p.a.
Excess input tax credits claimed or extra output tax reductions24% p.a.

Suppose a person required to pay GST fails to pay the tax or any portion thereof to the Government by the due date. In that case, he is personally liable for interest at the rate of 18% per annum on the outstanding tax liability.

In addition, interest is calculated from the day following the due date for payment of the tax.

For Example,

ABC Limited must pay a GST of Rs.10 Lakh on or before May 20th, 2021. However, it pays the tax on 20th June 2021. Please calculate the amount of tax that needs to be paid in interest.

We’ll need the following information to calculate the exact interest rate:

  • Rate of interest (18 percent as per section 50)
  • The default number of days (31 days)
  • Outstanding tax amount (Rs.10 Lakh)

As a result, the interest on tax payments will be Rs.15 287/- (10 Lakh*18 percent *31/365).

How To Pay GST Using myBillBook

myBillBook will assist you in filing your GST returns much faster.

In three simple steps, you can file your GST returns.

1. Upload:-

You can upload your purchases or selling transactions in.csv format in just a few clicks, track the appropriate fields, and import all of your transactions.

2. Push:-

Once all transactions have been imported into myBillBook, they can be uploaded to the GSTN for verification. You can check how far these transactions have progressed through the approval status.

3. Filing:-

Finally, you must file the GSTR returns. By uploading your digital signature, you can validate your filing and complete the filing process.

FAQs about GST Online Payment:

Q1. How do I pay my GST liability?

Ans: GST liabilities may be incurred in the following ways:

  • Internet Banking (e-Banking)
  • At Bank Branch
  • NEFT / RTGS

Q2. How many Challans are prepared under the GST regime for various taxes (CGST, SGST, and IGST)?

Ans: Under the GST regime, a single Challan is required for all tax payments, fees, interest, penalties, and other payments.

Q3. Can I pay GST using a physical Challan?

Ans: No, physical Challans for the payment of GST will not be accepted. GST payment can only be made using the Challans generated on gst.gov.in.

Q4. Is it possible to edit or modify a Challan before payment?

Ans: Yes, you can edit or modify any new or saved Challan before it is generated.

Q5. What is an electronic cash ledger, and what is it used for?

Ans: The electronic cash ledger is a register that must be maintained in the GST portal to track tax, interest, penalties, and other payments made electronically, via NEFT/RTGS, or on the counter.

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