The main implementation of GST in India was to make the overall tax payment process as simple, transparent and accountable as possible. Initially proposed to come into effect in 2010, this much-needed tax overhaul was long overdue.
India has a dual GST model in place, where the tax is administered by the center and state governments on the supply of goods and services. 17 taxes were clubbed together and replaced by GST and almost 40 rates were divided into 4 tiers of 5%, 12%, 18%, and 28% respectively.
The Indian government appointed a GST council responsible for setting rates for different products and services that fall under GST. This way both, central and state governments get their tax revenues.
How to Pay GST Online
There are a few main payment modes if you are looking to pay your taxes online. The challan for each of the payment methods below will be electronically generated to the Goods and Services Network (GSTN) portal.
Online modes of payment
- Payment through credit or debit cards.
- Payment through internet banking for authorized banks.
Offline modes of payment
- Over the counter payment for authorized banks (up to Rs.10000 per challan are permitted).
- Payment through National Electronic Funds Transfer (NEFT) or Real-Time Gross Settlement (RTGS).
Payment through Internet Banking or through Debit/Credit cards
Open the GST Portal, search for the option to ‘pay taxes’ without logging in.
- If you choose to login, the basic details will be filled automatically.
- If not, you will have to fill in basic details individually.
Next, fill in tax details.
- You can save the challan and edit them later before the final submission.
- Once submitted, the challan will be generated for payment. It will have a 14 digit unique identification number (CPIN).
- Proceed to pay the tax amount and note down the 17-digit Corporate Identity Number (CIN).
- The CPIN number is converted to CIN number by the addition of a 3 digit bank code at the end.
- Once the payment is successful, a copy of the paid challan can be saved or printed.
Payment through Over the Counter
Open the GST Portal and proceed to the ‘payment mode’ options.
- Select the ‘over the counter’ option as payment mode.
- Choose the bank where the money is to be deposited.
Next, choose either cash, cheque or demand draft.
- Select the option to generate the challan.
- An OTP authentication box will be displayed.
- Proceed to enter the OTP from the registered mobile number.
- Once OTP is verified, the challan is generated.
Download a copy of the challan and print one.
- Payment must be made within the challan’s validity period.
- After receiving confirmation from the bank, the payment status will be updated on the GST portal.
Payment through NEFT or RTGS
Open the GST Portal and proceed to the ‘payment mode’ options.
- Select the ‘NEFT/RTGS’ option as the payment mode.
- A list of banks will be displayed, choose from the list and proceed.
Select the ‘generate challan’ option.
- An OTP authentication box will be displayed.
- Proceed to enter the OTP from the registered mobile number.
- Once OTP is verified, the challan is generated.
Download a copy of the challan and print one.
- Visit the selected bank and provide the challan.
- Proceed to make payment using a cheque or the account debit facility.
A Unique Transaction Number (UTR) will be sent to the registered e-mail address or mobile number. This number (UTR) can be linked with the NEFT/RTGS CPIN on the GST portal.
After receiving confirmation from the bank, the payment status will be updated on the GST portal.
How to check the status of GST payment
Once registered on the GST portal, the status of your GST payment can be checked at any time. First, log on to the GST Portal
- Open account holder details.
- Select the ‘view payment history’ option.
- The payment status of each challan will be displayed.
In case you are using an alternate method, you can also check your status through the e-cash ledger maintained on the GST Portal.
Common errors when making GST payments
There might be times when an error is made by the user, probably when crunching numbers or selection of a wrong option.
Error made in Goods and Services Tax Identification Number (GSTIN)
This normally occurs due to a tax representative like a personal accountant who files taxes on behalf of the taxpayer. The taxpayer can directly make payments by logging in, which reduces the chances of a wrong GSTIN.
The representative should take responsibility for the error as they generally use a GST software or website without logging in, raising the risk of error.
Error made by the major governing heads
The dual GST system implemented in India allows the collection of GST at the central and state-level governments. In case of errors made, it is the bank’s duty to rectify the mistake before the end of the day as the amount will be received by them.
Error made in calculating the total amount payable
In case the tax paid is in excess of the liability, there is a system in place for obtaining a refund. You can also credit forward the excess amount paid.
The online payment methods to file and pay your GST have been quite beneficial for the public. It is much easier and less complex now than it was for our previous tax filing system. Although, not all banks authorize these payment methods. Visit your bank or call the customer service helpline to confirm if these payment options are supported by your bank.
