The GST is a value-added tax (VAT) levied on the majority of goods and services sold for domestic consumption. The Goods and Services Tax Act was passed by Parliament on March 29, 2017, and went into effect on July 1, 2017. You had to pay a number of taxes, including service tax, VAT, and a number of other indirect taxes imposed by the Central and State governments. These major indirect taxes that were previously in place in India have been consolidated into the GST taxation system (Goods and Service Tax). Paying taxes was a time-consuming and complicated process before implementing the Goods and Services Tax. Consumers pay the GST, but the businesses that sell the goods and services remit it to the government.
Every business owner or self-employed professional involved in purchasing goods and services must file GST returns. Since the government effectively implemented the GST, taxpayers have gained greater clarity in the tax payment system. In India, there are three types of GST: CGST, SGST, and IGST. This simple distinction distinguishes inter-state from intra-state supplies and reduces indirect taxes.
Did you know?
As of June, the Central GST collected ₹25,306 crores, state GST collected ₹32,406 crores, while Integrated GST collected ₹75,887 crores, including ₹40,102 crores on imports. During April this year, GST revenues reached a high of ₹1,67,540 crore, before dropping to about ₹1.41 lakh crore in May.
Also read: Inspection, Search and Seizure Under GST
Who Is Liable to Pay GST?
If you fall into the categories mentioned below, your GST returns must be filed on time, and you must be aware of your GST payment due and how to make it. Also, you should hold an authenticated GST Identification Number (GSTIN). GST is one indirect tax for the whole nation, making India one unified common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.
Liability of tax occurs in following ways:
- Registered suppliers of goods or services that will need to pay GST, but in specified cases like imports
- Liability will lie on the recipient under the reverse charge mechanism.
- When turnover in a financial year exceeds ₹20 lakhs, which may vary in some states, you may be applicable for payment of GST. The obligation to pay GST may be imposed on e-commerce operators who provide such services.
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 their income. It includes information on the income and expenses a taxpayer must report to the tax authorities.GST returns are often used by tax authorities to calculate the tax liability of taxpayers.
GST return filing in India is required for all entities with a valid GST registration, regardless of business activity, sales, or profitability during the period of filing the returns. As a result, even a dormant business with a valid GST registration is obligated to file GST returns.
A registered taxpayer 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.
Documents Required for GST Registration
- PAN Card.
- Aadhaar card where ever possible.
- Digital Signature in case of companies and LLP.
- Valid mobile number and Email ID.
- Photograph of Proprietor, partners, authorised signatories.
- Registration Certificate obtained under earlier Tax laws.
- Proof of appointment of the authorised signatory and their personal details.
- Proof of principal place of business.
- Opening page of Bank statement held in the name of Business or Proprietor.
How Do You Make a GST Payment Online?
To maintain accessibility and transparency, the entire GST payment process has been made available online. With the online mode, the taxpayer needs to log in to the GST portal and https://www.gst.gov.in/ URL to make the payment.
The GST portal provides a list of banks through which the payment can be made. To initiate an online GST payment, taxpayers need to generate a challan online using the form GST PMT-06 available on the Goods and Services Network (GSTN) portal, which will be valid for a period of 15 days.
Challan Identification Number (CIN) is generated after successful payment. If the CIN is not generated or not communicated to the common portal, then Form the person can file GST PMT-07. The taxpayer can then make the payment through the various modes of net banking, credit, or debit cards.
The taxpayer may not need to log in to the GST Portal and can pay GST Challan through online payment using NetBanking. They just need their personal or corporate account to be enabled for Net Banking. If needed, check with your bank to enable the service. Money can be deposited in the Cash Ledger by different modes, namely, E-Payment (Internet Banking, Credit Card, Debit Card); Real Time Gross Settlement (RTGS)/National Electronic Fund Transfer (NEFT); IMPS (Immediate Payment Service); UPI (Unified Payment Interface). The electronic cash ledger is automatically updated after the GST payment is made. If a taxpayer generates a challan without logging in, they must complete the payment immediately.
To make the GST payment once the challan is generated, perform the following steps:
Step 1: Access https://www.gst.gov.in. The GST Home page is displayed.
Step 2: Log in to the GST Portal with valid credentials.
Step 3: Access the generated challan. Click the Services > Payments > Challan History command.
Step 4: Select the CPIN link for which you want to make the payment.
Note: If you don’t know the CPIN number, you can select the Search By Date option to find the CPIN number by the date on which it was generated.
Step 5: Select the mode of e-payment.
In the case of net banking:
a) Select the bank through which you want to make the payment.
b) Tick the checkbox, Terms and conditions.
c) Click the "Make Payment" button.
In the case of credit or debit cards,
a) Please select a payment option.
b) Tick the checkbox, "Terms and Conditions apply."
c) Click the "Make Payment" button.
All Forms Related To GST Payment
Use of form
This form is used to maintain the Electronic Tax liability.
This form is used to maintain an electronic credit ledger.
Order by the proper officer to the re-credit amount on the rejection of refund
Communication of discrepancy in electronic credit ledger, cash ledger or liability ledger
This form is used to maintain an electronic cash ledger.
Challan for payment of GST
Application when CIN is not generated or not communicated to the common portal.
According to the guidelines, every registered regular taxpayer is required to file GST returns on a monthly basis and pay the applicable tax by the 20th of each month. If payment is not received by the due date, interest at the rate of 18% will be charged. It is important to note that if your tax amount is more than ₹10,000, it is mandatory to pay it online.
Steps to track GST payment status online before logging:
- Visit GST Portal
- Enter GSTIN and CPIN.
- Write Captcha code
- Select Track status from drop-down menu
- Status of payment is displayed as Paid or Not Paid.
How to Track Your GST Payment?
To track whether the Challan payment has been made, any registered taxpayer who has paid the GST amount can track it in the GST Portal through the Challan history. The taxpayer can follow the following steps:
- Step 1: Visit the GST portal. Fortunately, you do need to log in to track payments. On the homepage of the GST portal, go to Services.
- Step 2: Enter the details of your central GST number and the common PIN. Further, the status will show you if it's paid or not paid.
What Happens If the GST Challan is Not Paid?
If the status shows “Failed”, the Taxpayer will need to create another challan. Depending on the status of the challan, the debited money may either get updated in the Electronic Cash Ledger, or it may get returned to the Taxpayer's bank account, which may take up to 24 Hrs
We hope the Indirect Taxation system of GST and its online payment is clear to you. The Khatabook App is a great source of information on everything you need to know about GST Payment Online.
In short, the GST payment process and GST payment schedule are critical for any business to remain compliant. To make GST payments online on time and continue their business in a hassle-free manner, every business must be aware of the required GST payment formats, make the correct GST payment calculations, adhere to the GST payment dates, and accordingly pass the correct GST payment vouchers in their books. Do you have issues with payment management and GST? Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.