Easy Guide on How to Make GST Payment Online on GST Portal

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.

Who should pay GST?

Any person who provides the supply of goods or services should pay GST if the output tax exceeds the input tax liability. However, if the Reverse Charge Mechanism (RCM) applies, the recipient of the goods or services should pay the GST. Nonetheless, to pay GST, the individual must first register with GST.

GST(Goods and Services Tax) is levied on the supply of goods and services in India. The responsibility of paying GST falls primarily on:

1. Registered Taxable Persons: Businesses with an annual turnover exceeding the prescribed threshold are required to register for GST and pay taxes on their supplies.
2. Suppliers: Individuals, firms, corporations, or entities supplying taxable goods or services are responsible for collecting and remitting GST to the government.
3. Importers: GST is applicable on the import of goods and services into India, and importers are required to pay GST at the time of importation.

Adherence to GST regulations ensures compliance and contributes to the smooth functioning of the tax system.

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:

Regular taxpayer

• 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.

Quarterly taxpayer

• 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.

GST payment process

In the GST payment process, you'll engage with three pivotal ledgers, each serving distinct purposes:

1. 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.
2. 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.
3. 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.

Methods for making a GST payment

1. Online payment via GST portal:

• Log in to the Official GST portal with your credentials. Find out how to login to GST portal.
• Navigate to the 'Services' section and select 'Payments' followed by 'Create Challan'.
• Choose the appropriate tax heads and enter the amount.
• Select a preferred payment mode (Net Banking, Credit/Debit Card, or NEFT/RTGS).
• Complete the payment process and save the Challan Reference Number (CRN).

2. Payment through banks:

• After generating the challan on the GST portal, visit the selected authorised bank.
• Provide the challan and make the payment via cash, cheque, or demand draft.
• Ensure the bank processes the payment and provides a confirmation receipt.

3. Over-the-Counter (OTC) payment:

• Applicable for payments up to Rs. 10,000.
• Generate the challan online and visit the nearest authorized bank branch.
• Pay using cash, cheque, or demand draft, and collect the receipt.

4. Unified Payments Interface (UPI):

• Select UPI as the payment mode on the GST portal.
• Use a UPI-enabled app to complete the transaction.
• onfirm the payment and save the transaction details for future reference.

How to generate a GST challan on the GST portal?

• Log in:
  • Visit the GST portal.
  • Log in using your GSTIN and password.
• Navigate to challan section:
  • Go to the 'Services' tab.
  • Select 'Payments' and then 'Create Challan'.
• Enter details:
  • In the challan form, fill in the required details including taxpayer type, applicable tax heads (CGST, SGST, IGST, Cess), and the amount for each head.
  • Verify the auto-populated details.
• Select payment mode:
  • Choose your preferred payment mode from Net Banking, Credit/Debit Card, NEFT/RTGS, or Over-the-Counter (OTC).
• Generate challan:
  • Click 'Generate Challan' to create the challan.
  • A Challan Reference Number (CRN) will be generated.
• Make payment:
  • If paying online, proceed to complete the payment.
  • For offline methods, print the challan and visit an authorized bank to make the payment.
• Save confirmation:
  • After payment, ensure you save the payment confirmation and CRN for future reference.

How to pay GST online

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.

How to make GST payment offline?

Paying GST offline involves a few straightforward steps:

1. Obtain a GST Payment Challan: Start by logging into the GST portal using your credentials. Navigate to the “Services” tab, select “Payments,” and then click on “Create Challan.” Fill in the necessary details, including the type of tax and the amount. Once complete, click “Generate Challan” to create your payment challan.
2. Download and Print the Challan: After generating the challan, download it and print a copy. Ensure all the details on the challan are correct.
3. Visit an Authorised Bank: Take the printed challan to an authorised bank that is empanelled by the Goods and Services Tax Network (GSTN) for accepting GST payments.
4. Submit the Challan to the Bank: At the bank counter, submit the printed challan along with your payment, which can be made in cash, by cheque, or via demand draft. The bank will provide a stamped acknowledgement as proof of payment.
5. Verify GST Payment Status: After making your payment, you can check the status by returning to the GST portal. Go to the “Services” tab, select “Payments,” and click on “Track Payment Status.” Enter the Challan Identification Number (CIN) from the stamped acknowledgement to verify your payment status.

Importance of GST cash and credit ledger for GST payment

The GST cash and credit ledgers play a vital role in managing GST payments for businesses. The GST portal maintains three types of ledgers: the GST cash ledger, GST credit ledger, and GST liability register.

1. GST cash ledger: This ledger shows the total amount of GST paid in cash by the business. It helps track cash outflows related to tax payments and ensures that sufficient funds are available for future liabilities.
2. GST credit ledger: This ledger displays the balance of Input Tax Credit (ITC) available to the business. It allows businesses to utilise the credit for future tax payments, reducing their overall tax burden and improving cash flow.
3. GST liability register: This register provides a summary of the total GST liability and indicates how the liability was settled, whether in cash or through credit.

Accessing these ledgers is simple; users can find them under the “Services” section on the GST portal. Importantly, credits in the electronic cash ledger can only be used for tax payments, not for paying interest or penalties. Thus, maintaining these ledgers is essential for effective GST compliance and financial management.

Common mistakes during GST payment online and how to avoid them

When making GST payments online, businesses often encounter common mistakes that can lead to complications. Here are some of those mistakes and tips on how to avoid them:

1. Incorrect tax amounts: Always double-check the tax amounts reported in your return. Ensure they match your records and payments. Reporting errors can cause discrepancies and potential penalties.
2. Mismatched details: Make sure the details of your sales, purchases, and Input Tax Credit (ITC) claimed align with your business records. Any mismatch can create problems during audits.
3. Incorrect HSN codes: Use the correct Harmonised System of Nomenclature (HSN) codes for your goods or services. Mistakes in HSN codes can result in rejections or issues with your ITC claims.
4. Late filing: Filing your returns on time is crucial. Set reminders to meet deadlines, as late filings attract penalties and can affect your compliance rating.
5. Omissions: Avoid leaving any fields blank or skipping transactions. Ensure all taxable and exempt supplies, as well as purchases, are accurately reported.
6. Errors in challan details: Check that the challan details, including the Challan Identification Number (CIN), are correctly entered in your return. Incorrect details can cause payment mismatches and processing delays.

By being mindful of these mistakes, you can ensure a smoother GST payment process.

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.

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.

GST payment due dates for different taxpayers

Understanding GST payment due dates is essential for taxpayers to ensure compliance and avoid penalties. The due dates are typically aligned with the filing of the GSTR-3B return. Here’s an overview of the key due dates:

Type of Taxpayer	GST Payment Due Dates
Regular Taxpayer	20th day of the following month
Composition Scheme	18th day of the month after the quarter
Non-Resident Taxpayer	13th day of the following month
Input Service Distributor	13th day of the following month
TDS Deductor	10th day of the following month
TCS Collector	10th day of the following month

 

For regular taxpayers, payments are due on the 20th of the next month, while those under the composition scheme must pay by the 18th day after the quarter ends. Non-resident taxpayers and input service distributors are required to pay by the 13th day of the next month. TDS deductors and TCS collectors have an earlier deadline of the 10th day of the following month. Meeting these deadlines is vital for maintaining good standing with tax authorities.

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.

Interest on late payment of GST

Interest on late payment of GST is levied to encourage timely compliance. If a business fails to pay GST by the due date, interest is charged on the outstanding amount. The interest rate is typically 18% per annum but may vary based on specific circumstances and changes in regulations. This interest accrues from the date the tax was due until the date of payment. Additionally, late payment can result in penalties, which can increase the overall financial burden. Timely payment and accurate reporting are crucial to avoid these additional costs and maintain good compliance standing.

Steps to complete GST payment at a later date?

Here are the steps to complete GST payment at a later date for each of the mentioned modes:

For payment through net banking:

1. Log in to the GST portal using your credentials.
2. Navigate to the 'Services' tab and select 'Payments' from the dropdown menu.
3. Click on 'Create Challan' and enter the necessary details such as the tax type, amount, etc.
4. Generate the challan and note down the Challan Identification Number (CIN).
5. Choose the option to make payment later through net banking.
6. Log in to your bank's net banking portal.
7. Go to the option for making GST payments.
8. Enter the CIN and other required details.
9. Verify the details and confirm the payment.
10. Once the payment is successful, you will receive a confirmation from your bank.

For OTC (Over the Counter) mode of payment:

1. Generate the challan on the GST portal as usual.
2. Note down the Challan Identification Number (CIN).
3. Select the option to make payment later via OTC.
4. Save or print the challan generated.
5. Visit the designated bank authorized to collect GST payments.
6. Submit the printed challan along with the payment amount.
7. The bank will process your payment and provide you with a receipt.

For RTGS/NEFT mode of payment:

1. Generate the challan on the GST portal.
2. Note down the Challan Identification Number (CIN).
3. Select the option to make payment later via RTGS/NEFT.
4. Save or print the challan for reference.
5. Log in to your bank's net banking portal.
6. Navigate to the option for making RTGS/NEFT payments.
7. Add GST as a beneficiary if not already added.
8. Enter the details of the beneficiary account and the amount to be paid.
9. Use the Challan Identification Number (CIN) as the payment reference.
10. Confirm the transaction and complete the payment.
11. After successful payment, you will receive a transaction reference number.

Following these steps should enable you to complete your GST payment at a later date using the respective modes of payment mentioned.

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.

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