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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: 15 Nov, 2024 12:39 PM

Before the advent of Goods and Service Tax (GST), paying taxes was a tedious task. You were liable to pay a variety of taxes like service tax, value-added tax, and several other indirect taxes charged by the Central and State governments. Most of the time, you don’t know what the exact payment procedure is.

But since the government has rolled out GST and implemented it effectively, we (the consumers) have gained greater clarity in tax payment under the indirect taxation regime.

GST (Goods and Services Tax) returns need to be submitted monthly and is payable by the 20th of every month. GST online payment system has made been introduced which can be accessed from 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.

How to Make GST Payments Online?

Follow the steps mentioned below to make GST payment online:

  • Login to the GST portal by clicking on the link: https://services.gst.gov.in/services/login
    GST Login
  • After logging in, click on Services >> Payment >> Challan.
    GST Challan
  • On the next step, mention the liability amount that you wish to pay.
    GST liability amount
  • Next, you will be taken to the ‘Payment’ section of the form. From the options provided, select the payment option through which you want to pay the challan. Once you have selected the mode of payment, click on ‘Generate Challan’.
    Payment Mode
  • Your challan will be successfully generated once you have completed the entire process. You can consult the picture attached below for reference purposes.
    GST Challan Generate

How to make GST Payments Offline?

For those who cannot process the GST payment online, can pay GST dues via 2 methods – over the counter and NEFT/RTGS.

Over the Counter GST Payment Process:

Access GST Payment Portal:

Log in to the GST payment portal using your credentials.

Select Payment Option:

Choose "Over the Counter" as the payment option before proceeding to generate the challan.

Provide Bank Details:

Select the name of the bank where you intend to make the GST payment.

Choose Payment Method:

Indicate whether the payment will be made by Cheque, Demand Draft, or Cash.

Generate Challan:

Click on the "Generate Challan" button to create the payment challan.

Print Challan:

Take a printout of the generated challan.

Visit Bank:

Visit the selected bank branch with the printed challan to complete your GST payment.

Confirmation:

After providing payment at the bank, the payment status will be updated on the GST Portal once confirmation is received from the bank.

GST Payment via NEFT/RTGS Process:

Log in to GST Portal:

Access the GST payment portal using your credentials.

Select Payment Mode:

Choose the NEFT/RTGS payment mode before proceeding to generate the challan.

Bank Selection:

From the drop-down menu, select the bank that supports NEFT/RTGS payments.

Generate Challan:

Click on the "Generate Challan" button to create the payment challan.

Print Challan and Mandate Form:

Take a printout of the generated challan. Additionally, a mandate form may be generated for direct debit payments.

Visit Bank:

Visit the applicable bank branch along with the printed challan and mandate form (if applicable) to complete the NEFT/RTGS payment of GST.

Payment Confirmation:

After completing the payment at the bank, the payment status will be updated on the GST Portal once confirmation is received from the bank.

Optional:

Use the UTR (Unique Transaction Reference) number generated on the GST portal to link your bank account for future GST payments if desired.

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.

How to search for your Challan history?

To search for your challan history, follow the steps mentioned below:

  • Go back to the home page of your GST account.
  • After this, click on these options: Services >> Payment >> Challan history. You can refer to the picture mentioned below for reference purposes.
    GST Challan History

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)”

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.