At this point, you have probably understood the importance of registering your business under the GST and have begun the process of GST registration. However, it is vital to know how to do GST payment online.
Which GST Payments Do You Need to Make?
Under the new GST system, GST is levied in 3 different forms depending on the type of transaction, these are:
The Integrated GST or IGST is levied by the center when the supply of goods or services is made between states.
The Central GST or CGST is levied by the central government for the supply of goods or services within a state.
State GST or SGST is levied by the state government for the supply of goods or services within the state.
Are You Liable to Make a GST Payment?
You are liable to pay GST in the following cases:
- If you are registered under GST and are making taxable supplies under GST.
- If you are registered under GST and are required to make a tax payment under the Reverse Charge Mechanism (RCM).
- If you are an E-Commerce operator registered under GST through whom specific categories of notified supplies are made.
- If you are an E-Commerce operator registered under the GST and are required to collect tax (TCS).
- If you are a person registered under the GST and are required to deduct Tax (TDS).
How Do You Make a GST Payment Online?
GST payments can be made through a Credit Ledger and a Cash Ledger.
Payment through Credit Ledger
Dealers can use Input Tax Credit (ITC) for GST payment. The credit can only be used for the GST payment. ITC does not cover the interest, penalty, and late fees.
Payment through Cash Ledger
GST payment can be made either online or offline. The challan has to be generated on GST Portal irrespective of whether you are opting for an online of offline GST payment.
Steps To Follow to Make a GST Payment
- Go to the official GST website and enter your username, password, and the given captcha code and login to your account on the GST Portal.
- Visit the ‘Services’ tab, select payments, and click on the ‘Create Challan’ option.
- Type the amount that you need to pay and select the GST payment method you wish to employ. You have a multitude of options that include over the counter, NEFT/RTGS, Internet Banking, or Debit Card/Credit Card. Enter all the details and click on ‘Generate Challan.’
- A summary page that contains all the details of the challan will pop up. Click on the GST payment mode and hit the ‘MAKE PAYMENT’ button.
- Once the GST payment is made, you will receive a challan that consists of all the details of the tax that you have paid. The challan for the tax paid will be sent to your cash ledger account.
Filing GST Returns
A GST return is a document that a taxpayer is required to file with the tax administrative authorities that contains all the details of his or her income. GST returns are often used by tax authorities to calculate the tax liability of the taxpayers.
Under the GST regime, a registered dealer must file GST returns that include:
- All purchases
- All sales
- The GST on sales
- The GST on purchases
GST compliant purchases and sales invoices are required for GST return filing.
Types of GST Returns
This includes details of all the outward supplies of taxable goods and services. It is collected every month.
This is a summary of the outward supplies along with the Input Tax Credit by which the payment of tax is affected. It is collected monthly.
This is the GST return for a taxpayer who is registered under the composition scheme. It is collected quarterly.
This is a GST return for a Non-Resident foreign taxable person. It is collected every month.
This is a GST return for an Input Service Distributor. This return is collected monthly.
This GST return has to be filed by authorities deducting tax at source. It is collected every month.
This GST return includes the details of supplies effected by the e-commerce operator and the amount of tax collected. This is collected monthly.
This GST return is the annual return for a normal taxpayer. This GST return has to be filed annually.
This is the annual GST return for a taxpayer who has registered under the composition scheme. Return filing has to be done annually.
This represents the final return. This is collected once when GST registration is canceled or surrendered.
This GST return represents the details of inward supplies to be furnished by a person who has a Unique Identification Number (UIN) and is claiming a refund. Return filing has to be done every month.
Penalty for Late GST Return Filing
If GST Returns are not filed on time, you will be required to pay interest and a penalty.
The interest you need to pay is 18% per annum and it is calculated on the outstanding tax to be paid.
The late fee to be paid is Rs. 100 per day per Act, which means that you would have to pay Rs. 100 under CGST & Rs.100 under SGST. The total works out to Rs. 200/day. However, there is no late fee for IGST.
The online GST Portal serves as an excellent source of information for everything you may need to know about GST Payment Online. These steps should suffice to get you started with filing your GST returns.