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. The payment is calculated based on the GST rates applicable to the goods or services provided by the taxpayer. Businesses collect the GST payment on behalf of the government from the customers and then remit it to the tax authorities. The GST payment is used for developmental activities and public services.
Who should pay GST?
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.
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.
Which mode to choose for making a GST payment?
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.
Step 2. Enter your GSTIN, temporary user ID, tax return preparer ID, or UN body ID.
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.
Step 4. Re-enter the GSTIN or other ID in the Challan Generation field and click PROCEED.
Step 5. Click on the DOWNLOAD button to save the generated challan for your records.
How to Generate GST Challan after Logging in to the GST Portal?
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.
To proceed, the taxpayer must enter the amounts under the respective tax heads and select the preferred payment mode.
Time Limit for GST Payment
Ensuring timely GST payments is crucial for compliance and avoiding penalties. Here's a detailed guide on the time restrictions, due dates, interest on late payments, and methods to pay GST online or offline.
Offline Payments:
You have 15 days from the date of challan generation to complete the payment.
Online Payments:
- Without Logging In: Payment must be made immediately after generating the challan.
- After Logging In: You have up to 15 days to complete the payment.
Key Points for Online GST Payment
Net Banking:
- After selecting the bank and generating the challan, a Common Portal Identification Number (CPIN) is issued.
- Payment must be completed immediately if generated without logging in.
- Payment can be completed within 15 days if generated after logging in.
Offline Mode:
- CPIN is generated with the challan and saved automatically.
- For over-the-counter payments at banks, you have 15 days to complete the payment.
GST Payment Due Dates for Different Taxpayers
The GST payment due date is generally tied to the filing of the GSTR-3B return. Here’s an overview of key due dates:
| Type of Taxpayer |
GST Payment Due Date |
| Regular Taxpayer |
20th Day of the Next Month |
| Composition Scheme |
18th Day of the Month Following the Quarter |
| Non-Resident Taxpayer |
13th Day of the Next Month |
| Input Service Distributor |
13th Day of the Next Month |
| TDS Deductor |
10th Day of the Next Month |
| TCS Collector |
10th Day of the Next Month |
Interest on Late Payment of GST
Late payments attract interest charges as per GST law. Here’s how it works:
Interest Rate for Late Payment:
- 18% Per Annum: Applicable for delayed GST liability payments, including taxes, interest, or other payable amounts.
- 24% Per Annum: Applicable in cases of undue or excess claim of Input Tax Credit (ITC) or reduction in tax liability.
How Interest Is Calculated:
The interest on late GST payments is calculated using:
Interest=Tax Amount×(Interest Rate100)×(Number of Days365)\text{Interest} = \text{Tax Amount} \times \left( \frac{\text{Interest Rate}}{100} \right) \times \left( \frac{\text{Number of Days}}{365} \right)Interest=Tax Amount×(100Interest Rate)×(365Number of Days)
Example:
If the pending GST liability is ₹10,000 and the delay is for 20 days:
10,000×(18100)×(20365)=₹98.6310,000 \times \left( \frac{18}{100} \right) \times \left( \frac{20}{365} \right) = ₹98.6310,000×(10018)×(36520)=₹98.63
Applicability of Interest:
- Delayed Payment of Tax: Any delay in payment results in an interest charge.
- Wrong Utilization of ITC: Interest is levied on excess credit claimed or utilized.
How to Pay GST Online at a Later Date
Even if you generate a challan, you can pay GST later depending on the mode chosen. Here’s how:
Through Net Banking
- Log in to the GST portal: Services > Payments > Challan History.
- Click on the relevant CPIN, select the bank, and complete the payment process.
- The Electronic Cash Ledger is updated immediately upon successful payment.
Through OTC Mode (Over the Counter)
- Fill out the remaining challan details and affix an authorized signature.
- Submit the filled challan and payment instruments to the selected bank.
- The Electronic Cash Ledger is updated within 1-2 days.
Through RTGS/NEFT
- Enter the required RTGS/NEFT particulars in the challan.
- Submit the filled challan copy and remittance mandate to the remitting bank.
- After processing, you’ll receive a UTR and CIN. The GST portal will be updated accordingly.
| 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!
GST Registration
