Any business owner or a self-employed professional associated with the purchase or supply of goods and services must file GST returns (GSTR). If you belong to this category, you will have to make a GST payment based on the timeline for filing GST. Here is what you need to know about your GST payment due and how to pay it.
What is GST payment?
A GST payment refers to the amount of tax that businesses and individuals are required to pay to the government under the Goods and Services Tax (GST) regime. This payment is calculated based on the GST rates applicable to the goods or services provided by the taxpayer. Businesses collect GST on behalf of the government from their customers and then remit it to the tax authorities. The GST payment is crucial for government revenue and is used for various developmental activities and public services.
Additional Read: Know all about GST
GST payment process
In the GST payment process, you'll engage with three pivotal ledgers, each serving distinct purposes:
- Electronic Tax Liability Register: This ledger meticulously documents all your GST and related liabilities, comprising taxes, interest, penalties, and late fees. It offers a comprehensive overview of your financial obligations under the GST regime.
- Electronic Cash Ledger: Here, you'll find a detailed record of all credit transactions, encompassing deposits for taxes, fees, penalties, and other financial obligations. It acts as a central repository for your monetary transactions within the GST framework.
- Electronic Credit Ledger: This ledger serves as a repository for any input tax credit you've availed, typically claimed through Form GSTR-2 after self-assessment. While the balance in this ledger can be utilized for tax payments, it cannot be used to offset charges like late fees or interest.
GST Payment Rules
Under the GST payment rules, it's essential to settle all taxes for the previous month before submitting your online returns to avoid penalties. Late payments attract an interest rate of 18% per annum calculated from the due date. Familiarising yourself with the GST online payment system is crucial for timely payments and compliance. Make sure to understand the steps involved in the payment process to ensure smooth transactions and adherence to GST regulations, ultimately avoiding any unnecessary fines or charges.
GST payment for different taxpayers
For different taxpayers, GST payment procedures are generally similar. If your electronic cash ledger holds enough funds, no payment is needed. However, if funds are insufficient, use a challan to deposit money into the cash ledger through prescribed payment modes. This ensures compliance with GST payment regulations. Here is a list of taxpayers and their payment process:
- Challan Usage: Regular taxpayers utilize the PMT-06 challan for GST payments to the electronic cash ledger, aligning with GSTR-3B filing.
- Challan Details: The particulars entered in the PMT-06 challan reflect in the GSTR-3B return.
- Payment Options: Taxpayers can generate and settle the challan pre or post-login, or during GSTR-3B filing, facilitating flexible payment avenues.
- Scheme Participation: These taxpayers opt into the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme.
- Payment Schedule: Tax liabilities for the initial two months of the quarter are remitted directly via PMT-6. The payment for the last month of the quarter occurs while filing GSTR-3B.
- Process Overview: The payment process for quarterly taxpayers entails distinct steps delineated in relevant guidelines.
Taxpayers with Nil GST Returns
- Zero Liability Status: This category encompasses taxpayers with no sales, purchases, or tax obligations for the reporting period.
- Exemption from Payment: Such taxpayers are exempt from using the challan or making any payment, ensuring compliance with nil filing requirements.
- Additional Resources: For comprehensive insights into nil filing obligations, taxpayers can refer to dedicated informational resources.
Composition Taxable Persons
- Sales Summary: Composition taxable persons consolidate their sales/turnover information for the quarter in challan CMP-08.
- Tax Payment: They then proceed to remit the applicable tax amount as per the consolidated details provided.
- Procedural Guidance: Detailed instructions for filing CMP-08 and fulfilling tax obligations are available through specified resources, facilitating adherence to regulatory requirements.
How to pay GST online or offline
Step 1: As a regular taxpayer registered with GST, you can proceed to the official GST website to log in to your account.
Step 2: After your GST login, proceed to the ‘payments’ section listed under the ‘services’ tab. Here, select the ‘Create challan’ option.
Step 3: Next, in the challan, enter every amount correctly under each head. Then, select the payment method.
Step 4: Once you fill in the particulars, under headers like CGST, IGST, cess, among others, click ‘create challan’. In case of doubt, you can click the ‘save’ option and retain the challan for the future. This way, you can make as many changes as you want at any time to the challan through your registered account. Hit ‘create challan’ only when you are sure of the details you have entered.
Step 5: After the challan gets generated, you will have to proceed with the GST payment. Here you can choose from 3 options: make an over-the-counter payment at your nearest bank or make an online payment using net banking/ debit card/ credit card or make the payment via NEFT/ RTGS.
Step 6: You can carry out an online or offline GST payment based on your preferred payment method. In the case of online payment, as soon as the payment is made, you will get an acknowledgement to download the challan. When paying at your local branch, you will receive a printout acknowledgement.
However, irrespective of how you pay GST, you will have to generate the paid receipt or final challan online. Retain a copy of your GST payment receipt; this will work as proof in future.
It is important to note that if your tax liability is more than Rs. 10,000, you must pay taxes online.
Additional Read: All about Goods and service tax identification number (GSTIN)
When can you make GST payment?
You will have to pay your GST every month after filing your GSTR 3B return. This means you will have to pay and file your return for the previous month by the 20th of the following month. Earlier, the payment coincided with GSTR 3 return, which stands suspended at the moment.
To avoid fines and interest charges, make total GST payments on a timely basis. If you delay the payment or pay lower than your dues, you will be charged 18% interest on your dues. That is why set a reminder for yourself so that you never have to miss paying your GST on time.
What is the time limit to finish GST Payment?
You must complete your GST payment within the time limit specified from the date of generating the challan. If you create the challan before logging in for net-banking, make sure to pay immediately. For offline mode, the time limit is 15 days from the challan generation date. Be prompt to avoid any penalties or late fees.
GST payment forms
For dealers liable to pay GST online in India, the below GST payment forms are essential-
Form GST PMT-01
Maintains the electronic tax liability register
Form GST PMT-02
Maintains the electronic credit ledger
Form GST PMT-03
Includes order of rejection of the claim for refund of balance in electronic credit ledger/ electronic cash ledger, issued by an authorised officer
Form GST PMT-04
Use the form to communicate any discrepancy in your electronic credit ledger
Form GST PMT-05
Maintains the electronic cash ledger
Form GST PMT-06
Includes challan for payment of tax, interest, penalty, fees, or any other amount
Form GST PMT-07
Use the form to communicate if your bank account has been debited, but corporate identification number (CIN) has not been generated or CIN has been generated but not reflected on the GST portal
How to track GST payment status per challan?
To track your GST payment status per challan, visit the GST website homepage and click on the "Track Payment Status" link under Services > Payments.
Then, enter your GSTIN and the CPIN details of the previously paid GST challan.
The current status of the payment will be displayed, providing you with real-time information on your GST payment.
How to check GST payments history?
To check your GST payment history, log in to your GST Account online and navigate to the "Services" tab. Then, select the Challan history menu to view your entire payment history. This will provide you with detailed information about your GST payments, including dates, amounts, and payment statuses, helping you keep track of your financial records easily.