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GST

GST Online Payment Process

What Payments are to be Done Under GST? 

The Central GST (CGST), which is deposited into the Central Government’s account, and the State/UT GST are the taxes that must be paid for any intrastate supply under the GST regime (SGST, which gets deposited into the concerned State Government account).

Integrated GST (IGST), which will include both CGST and SGST components, is the tax to be paid for any interstate supply.

Additionally, specific individuals will need to deposit TDS and TCS payments into the government account. Where applicable, payments must also be made for any fees, interest, penalties, or other charges.

Who Should Make the GST Payment? 

Anyone who supplies goods or services must go through the GST payment process if the output tax obligation exceeds the input taxes. The recipient of the goods or services should make GST payments if the Reverse Charge Mechanism (RCM) is applicable. The person first needs to register with the GST for this.

How to Make GST Payment Online

The taxpayer can take the following steps to make an online GST payment:

  1. Go to the GST website.
  2. Select the Create Challan option under Services > Payments.
  3. The Portal displays the “Create Challan page”. Enter your GSTIN in the GSTIN/UIN/TRPID/TMPID field.
  4. Enter the captcha text as shown below and click Proceed.
  5. Enter the GST payment information in the tax liability details part of the form. Once done, the total amount to be paid is automatically filled in.
  6. Choose the e-payment method.
  7. Press the GENERATE CHALLAN button, and an OTP box will appear. Enter the OTP and click PROCEED. The CHALLAN is now generated.
  8. Choose Net Banking as the E-Payment method, enter the bank details, read the Terms & Conditions and pay the amount.

How to Calculate Interest on Late Payment of GST:

Every person who is registered under GST should file the GST returns. If the GST returns are not filed on time, the taxpayers will have to pay a late fee and interest. Even if there is no activity, the taxpayers should file nil returns.

The following interest rates are attributable if GST is not paid by the deadline for filing the return:

SpecificationsInterest rate
Paying taxes after the deadline18% p.a.
Input tax credit overages or additional output tax breaks24% p.a.

To get a better idea about how interest is calculated, here’s an example:

Mr. X is the owner of a business and is required to pay a GST of Rs. 10 Lakh by May 20th, 2021. However, it paid the tax on June 20th, 2021. Now, here’s how we calculate interest:

Interest Rate- 18%

No. of days- 31

Unpaid tax amount- Rs. 10 lakh

The interest on tax payments will be Rs. 15 287 (10 Lakh*18%*31/365)

Also check: Free GST Billing Software

GST payment for different taxpayers

The GST payment process is the same for all taxpayers. 

GST payment is unnecessary if the electronic cash ledger has a sufficient cash balance. For instance, the taxpayer must use a challan to deposit money into the cash ledger using the approved payment methods if there is insufficient cash.

Below are the details related to different taxpayers:

Regular Taxpayer

When you file GSTR-3B, you must use the PMT-06 challan to pay GST. You can make that payment while you are filing GSTR-3B, before you start filing GSTR-3B, or after you start filing GSTR-3B.

Quarterly Taxpayer

These taxpayers are GST participants in the QRMP program. The first two months of a quarter must be used for direct tax deposits using the PMT-6, and the final month of the quarter must be used for payment while filing GSTR-3B.

Taxpayers submitting zero-GST returns

These taxpayers have not bought or sold anything during the tax period, so they don’t have to file a challan or pay any tax.

Composition taxpayers

These taxpayers must complete Challan CMP-08, summarise their sales/turnover information for the quarter, and pay any applicable taxes. 

Which mode to choose for making a GST payment?

One has to choose one of the ways to make GST payments when generating a GST challan. The choices are as follows:

Online payments

  • Credit/debit card (Not activated)
  • Internet banking
  • Unified Payment Interface (UPI) 
  • Immediate Payment Services (IMPS)

Offline payments

  • Over-the-counter (OTC) such as Cheque/DD/Cash
  • National Electronic Fund Transfer/Real-Time Gross Settlement, also referred to as NEFT or RTGS

How to use the GST portal to create a GST challan?

You can generate a GST challan in two ways: by logging into your GSTIN account on the GST portal or before you log in. 

The steps to generate a challan are as follows:

 Option 1: If the taxpayer decides to do without logging:

  • Go to the Services > Payments > Create Challan option on the GST portal’s home page.
  • Enter your GSTIN, temporary user ID, tax preparer ID, or UN body ID and enter the captcha code.
  • Fill in your tax amount, such as CGST/SGST/IGST.
  • Select the relevant payment mode with bank details.
  • Click the “PROCEED” button again after entering the GSTIN/Other ID for Challan Generation.

Option 2: If the taxpayer decides to do after logging into the portal:

After logging in, if a taxpayer decides to generate a challan, he can do so by clicking the Create Challan button on the dashboard. The remaining steps are the same for creating challans and filling them out.

What is the deadline for completing the GST payment?

The time frame allotted for making the GST payment must be calculated starting from when the challan was generated. 

If a pre-login challan is created for a net-banking mode, payment must be made immediately. The decision to use an offline mode will only last for 15 days. 

When entering the data for challan generation, it is important to make the following checks:

For Internet Banking

When choosing the net banking option, click “Generate challan” after selecting the bank name. The Common Portal Identification Number (CPIN) is generated after the selection.

The taxpayer must complete the payment immediately if the pre-login challan is created. Contrarily, a taxpayer can wait up to 15 days to complete the payment when a post-login challan is created.

In Offline Modes

When choosing an offline payment method like OTC or NEFT/RTGS, enter the bank account information where the money will be deposited or sent, then click “Generate challan.”

The challan copy automatically generates the CPIN and saves it, and the offline mode has a 15-day time limit.

FAQs about GST Online Payment

What does GST payment mean?

When filing GST returns, all GST-registered taxpayers must pay GST on sales after deducting any allowable ITC.

What do IGST, CGST, and SGST mean?

CGST, or Central GST, is levied by the Federal Government, whereas SGST, or State GST, is levied by the corresponding state government. On sales made within a state, CGST and SGST will be charged. The central government levies an additional IGST, or integrated GST, on transactions between states and UTs.

Where can I find the GST payment link?

https://payment.gst.gov.in/payment/ is where you can pay your GST.

Do debit or credit cards work for GST payments?

No, you can't pay GST with a debit or credit card. The system hasn't activated this option yet.

What is the interest rate when paying taxes after the due date?

If taxes are paid after the deadline, the interest rate is 18% p.a.

How do I pay my GST liability?

GST liabilities may be incurred in the following ways:

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

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

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

Can I pay GST using a physical Challan?

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.

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

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

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

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.