Before GST was implemented, tax payment was a tedious task. You had to pay several taxes like VAT, service tax, and other indirect taxes that the central and state governments charged. Most taxpayers needed to learn the exact payment procedure. However, ever since the government rolled out the GST taxation system, the tax payment procedure under the indirect tax regime has gained clarity.
You must submit GST returns each month by the 20th of next month. The online GST payment system is accessible through the GST portal. Here is a stepwise guide to understand what is GST payment procedure and how to pay it online.
What is GST Payment?
If your business supplies products or provides services, you must settle GST payments if your output tax liabilities surpass the input tax liabilities. The online GST payment system streamlines the process by generating GST challans and facilitating payments through multiple online channels. Any individual or entity, including traders, businesses, service providers, manufacturers, etc., must make a GST payment to clear their tax liabilities.
What is a GST Payment Challan?
GST payment challan, or GST PMT-06, is a common one you can use to make several GST-related payments, such as tax dues, interest, penalties, fees, etc. You can create a GST payment challan using the GST portal’s simple online interface and pay the due amount online. Creating a GST payment challan is the first step to initiating a broad range of GST-due payments. According to the GST rules, you may complete the payment within 15 days of generating the challan.
Different Forms for GST Payment
You must select the correct form from the available options when making an online GST payment. These are the different forms available:
- GST PMT-01: Electronic tax liability register- For any interest, tax, late fee, penalty, or other amount
- GST PMT-02: Electronic credit ledger- For every ITC claim
- GST PMT-03: Refund to be recredited- For refunding any amount debited from the electronic credit ledger or electronic cash ledger
- GST PMT-04: Discrepancy in electronic credit ledger- For discrepancies in the electronic credit ledger
- GST PMT-05: Electronic cash ledger- For any interest, tax, late fee, or penalty deposited in cash
- GST PMT-06: Challan for deposit of tax- For generating and paying a challan
- GST PMT-07: Discrepancy relating to payment- For cases when the tax liability is debited but CIN is not conveyed or when CIN is generated but the report does not reach the concerned bank
How to Make an Online GST Payment?
Follow these steps to make a GST payment online:
- Login to the GST portal at https://services.gst.gov.in/services/loginGST.
- Click on Services > Payment>> Challan.
- Mention the tax amount to be paid.
- In the ‘Payment’ section, select your challan and mode of payment, and click ‘Generate Challan’.
- After successfully generating the challan, take its printout and a mandate form for direct debit payments.
- Visit your bank branch with the mandate form and printed challan to complete the GST payment through NEFT/RTGS.
- Once the payment is complete, check the GST portal to confirm the payment status.
- You may also pay the tax online via net banking by selecting net banking on the ‘Payments’ page.
Steps to Search the Challan History
These are the steps to search for your challan history:
- Go back to the GST portal’s home page for your GST account.
- Click Services > Payment > Challan history.
Time Limit to Finish an Online GST Payment
The time limit for completing an online GST payment depends on the date of challan generation. If you create a pre-login challan for payment through net banking, you must complete the payment immediately. However, the time limit can be up to 15 days for offline mode.
What Happens if You Miss the Payment Deadline?
Missing the deadline for GST payment attracts interest and penalties. For a delayed payment, you must pay Rs. 100 per day up to a maximum of Rs. 5,000. Additionally, you must pay interest at a specific rate on the due amount.Now that you know what is GST payment system and how to pay it online, generate the challan and pay the tax on time to project yourself as a responsible citizen. Upon successful and timely GST payment, you also become eligible for various tax benefits, claim refunds, scheme subsidies, etc. You may also use the Kotak payment gateway to make your online GST payment.