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  7. GST Payment : Step-by-Step Guide to Pay GST | Tax2win

GST Payment Online – How to Pay GST Online?

Updated on: 21 Dec, 2024 01:33 PM

GST payments can be made online or offline. Businesses need to calculate the tax payable in cash after adjusting the available input tax credit. Once calculated, they must generate a GST challan to make the payment of the GST liability. This guide outlines the step-by-step process for making GST payments on the GST portal.

Contents

What is GST payment?

Taxpayers engaged in supplying goods or services are mandated to settle GST payments when their output tax liability surpasses their input tax liability. The online GST portal streamlines this process by enabling taxpayers to generate GST challans, facilitating payments via diverse online channels.

Which Mode of GST Payment Should Taxpayers Choose?

Businesses can choose either online or offline mode to make the GST payment while generating the GST challan in PMT-06. The choice of GST payment method depends on factors such as the time available to file the return before the due date, convenience, and the preferred banking partner.

Here are the modes of GST payment available on the GST portal:

Online payments

  • Net banking
  • Debit card/credit card
  • Immediate Payment Services (IMPS)
  • Unified Payment Interface (UPI)

Offline payments

  • Over the counter (Cheque/Demand Draft/Cash)
  • NEFT or RTGS

How to Make GST Payments Online?

Generate Challan Without Logging in to the Portal

Follow the steps mentioned below to make GST payment online:

Step 1. On the GST portal homepage, go to Services > Payments > Create Challan.

GST portal homepage

Step 2. Enter your GSTIN, temporary user ID, tax return preparer ID, or UN body ID.

GSTIN

Fill in the captcha code to proceed.

Step 3. Specify the amounts for CGST, SGST, IGST, or other applicable tax heads. Select the desired payment mode and provide bank details, if required.

amounts for CGST, SGST, IGST

Step 4. Re-enter the GSTIN or other ID in the Challan Generation field and click PROCEED.

Re-enter the GSTIN

Step 5. Click on the DOWNLOAD button to save the generated challan for your records.

Click on the DOWNLOAD button

How to Generate GST Challan after Logging in to the GST Portal?

Generate GST Challan

If a taxpayer chooses to generate a challan after logging in, they can locate the "Create Challan" button directly on their dashboard. The subsequent steps to fill in the required details and generate the challan remain unchanged from the pre-login process.

pre-login process

To proceed, the taxpayer must enter the amounts under the respective tax heads and select the preferred payment mode.

preferred payment mode

GST Payments for Different Taxpayers

GST payment for all taxpayers generally remains same. Though, there is a condition as per which if there is no sufficient cash balance, then the taxpayer must use a challan for depositing money into the cash ledger, using prescribed modes of payment and not the GST payment.

Regular Taxpayer

Regular taxpayer should use PMT-06 challan for making any GST payment towards the electronic cash ledger, around the time of filing GSTR-3B.

Quarterly Taxpayer

Taxpayers opted for QRMP scheme under GST must deposit tax in the first two months of a quarter directly using the PMT-6 and make payment while filing GSTR-3B for the last month (3rd month) of the quarter. The tax payments must be made by the 25th of next month for the first and second month of the quarter, i.e., for example, January and February for Jan-Mar 2021 quarter.

Taxpayers filing Nil GST returns

Taxpayers having no sales or purchase or tax payable for the relevant tax period, either for the month or quarter.

Composition taxable persons

These taxpayers have to summarise their sales/turnover details for the quarter in challan CMP-08 and make payment of tax.

Who is Required to Make GST Payments?

Registered Businesses and Individuals

  • Any business or individual registered under GST is required to make payments, either monthly or quarterly, depending on their filing schedule.
  • Regular taxpayers under GST must file returns (GSTR-3B and GSTR-1) and pay the tax amount due on sales or services.

Businesses with an Annual Turnover Above Threshold Limits

  • Businesses in India with an annual aggregate turnover exceeding ₹20 lakh (₹10 lakh for specific states) must register for GST and are thus liable for GST payments.
  • For service providers, the threshold is generally ₹20 lakh, while for goods suppliers, it’s ₹40 lakh in most states.

Casual Taxable Persons and Non-Resident Taxable Persons

  • Casual taxable persons (those who supply goods/services occasionally) and non-resident taxable persons (foreign businesses making supplies in India) are required to register and pay GST, even if their turnover is below the threshold.

Input Service Distributors (ISD)

  • ISDs, who distribute input tax credits to their branches, need to pay GST on the distribution of credits to various business locations.

Composition Scheme Dealers

  • Dealers under the GST composition scheme pay a fixed percentage of their turnover as GST. However, they are restricted from collecting GST on sales.

E-commerce Operators

  • E-commerce operators responsible for collecting tax at source (TCS) for sales made through their platforms are required to file GST returns and make payments on behalf of sellers.

Reverse Charge Mechanism (RCM)

  • Under RCM, the recipient of goods or services must pay GST if they receive goods or services from an unregistered supplier or specific services notified by the government.

What are the Essential GST Payment Forms?

Sr. no. Form no. Short description Purpose
1 GST PMT-01 Electronic tax liability register Any tax, interest, penalty, late fee, or any other amount will be debited to this register
2 GST PMT-02 Electronic credit ledger Every claim of ITC shall be credited to this ledger
3 GST PMT-03 Refund to be recredited Refund if rejected the amount debited from the electronic credit ledger or electronic cash ledger, as the case may be, will be recredited by order of a proper officer
4 GST PMT-04 Discrepancy in electronic credit ledger Discrepancy in electronic credit ledger, communicated to an officer through this form
5 GST PMT-05 Electronic cash ledger Any tax, interest, penalty, late fee, or any other amount to be deposited in cash are credited to this ledger
6 GST PMT-06 Challan for deposit of tax Generate and pay a challan
7 GST PMT-07 Application for intimating discrepancy relating to payment The application is meant for the tax payer where the amount intended to be paid is debited from his account but CIN has not been conveyed by bank to Common Portal or CIN has been generated but not reported by concerned bank (within 24 hours of debit)”

Filing a GST return and being compliant with the GST laws can be challenging, especially for those new to the process. To ensure accuracy and avoid mistakes, it's advisable to consult professionals. Tax2win’s experts are ready to help with GST filing and answer all your GST questions. Book a tax expert today!

FAQ on GST Payment

Q- Who needs to make GST payments?

Any individual or entity registered under GST, including businesses, traders, manufacturers, service providers, etc., need to make GST payments.

Q- When is GST payment due?

The due date for GST payment varies depending on the type of taxpayer and their turnover. Generally, GST payments are made on a monthly basis, with the due date being the 20th of the following month. For taxpayers with an annual turnover below a certain threshold, they may opt for quarterly payment.

Q- How can I make GST payments?

GST payments can be made online through the GST portal. Taxpayers can use various modes such as internet banking, credit/debit card, NEFT/RTGS, or over-the-counter payment at authorized banks.

Q- What happens if I miss the GST payment deadline?

Missing the GST payment deadline can attract penalties and interest. The late fee for delayed payment is Rs. 100 per day of delay (Rs. 50 for CGST and Rs. 50 for SGST) up to a maximum of Rs. 5,000. Additionally, interest is charged at a specified rate on the outstanding amount.

Q- Can I claim input tax credit for GST payments made?

Yes, businesses can claim input tax credit (ITC) for GST payments made on inputs used in the course of business. However, certain conditions need to be met as per the GST law.

Q- Is there any exemption from GST payment?

Some goods and services are exempted from GST or are taxed at a lower rate under certain conditions. Taxpayers dealing with exempted goods or services are not required to make GST payments on those transactions.

Q- What documents are required for GST payment?

Taxpayers need to generate a challan on the GST portal specifying the amount to be paid and the relevant tax heads (CGST, SGST, IGST). The challan serves as proof of payment.

Q- Where can I find my GST payment history?

Taxpayers can access their GST payment history on the GST portal by logging into their account and navigating to the relevant section.

Q- What is the link for GST payment?

Here is the link to make GST payment https://payment.gst.gov.in/payment/

Q- How can you check the GST payment status?

You can check your GST payment status after logging into the portal using the path below:

Services > Payments > Challan history.

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CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.