For businesses and professionals, paying GST (Goods and Services Tax) is part of meeting tax requirements in the supply chain. Hence, it is important to know the GST payment process step-by-step. The government has made it easier by providing both online and offline options for making GST payments, giving taxpayers flexibility.
To pay online, log in to the GST portal, go to the ‘Payment’ section, generate a challan, choose the tax period, and pay using internet banking, debit/credit card, or other digital payment methods. On the other hand, the offline method allows one to go to a bank branch, generate a challan and pay GST dues in person.
Table of Contents
What Is GST Payment?
GST payments are the tax payment made by businesses to the government based on the goods and services they provide.
Paying GST involves figuring out how much tax one owes after subtracting input tax credit. If you’re curious about what is Input Tax Credit, you can refer to this Input Tax Credit guide. Companies and individuals registered with GST need to file GST returns mandatorily detailing their sales, purchases and tax payments.
To determine the amount for GST payment, tools like GST Calculator Online can be utilised. The GST number search tool is also available for looking up GSTIN online. Additionally, incorporate factors such as interest charges on delayed payments, late fees for delay in filing GST returns, and TDS/TCS charges, if applicable, while making GST payment calculations.
Once the GST amount is accurately calculated, taxpayers can proceed with the online payment process, ensuring compliance with the Goods and Services Tax regulations.
GST Payment Processes for Different Taxpayers
Different categories of taxpayers need to follow the step-by-step GST payment process as described below:
1. Regular Taxpayer
For a regular taxpayer, a PMT-06 challan is required for making payment to the cash ledger. This is required when they are filing the GSTR-3B, every detail of which will be provided in the form. They can also create the challan and make payment either before or post login or even while filing the return for GSTR-3B.
2. Quarterly Taxpayer
Taxpayers who have chosen the QRMP Scheme fall under this category. The tax for the first 2 months of the quarter must be deposited using the PMT-06 challan, and the payment must be made during the last month of the quarter while filing the GSTR-3B. The tax must be paid by the 25th of the succeeding month for the first and second months of the quarter. For example, April and May for the April to June quarter.
3. Nil GST Return Taxpayer
Whether for a month or a quarter, these taxpayers do not have any purchase, sale or tax payable for the respective period. Therefore, they are not required to make the payment or generate a challan.
4. A Taxpayer Under the Composition Scheme
Such taxpayers are required to summarise their turnover or sales during a quarter and generate the CMP-08 challan for paying tax. For example, the April to June quarter’s tax must be paid by 18th June under the Composition Scheme.
What Are the Modes of GST Payment?
Selecting a suitable mode of GST payment while generating the GST challan (PMT-06) is crucial. The choice is influenced by factors such as the time availability before the due date, convenience, and the banking institution. Two main modes of GST payment are online payments and offline payments.
1. Online Payments
GST payment online includes:
- Net banking
- Debit card/Credit card (Not activated)
- IMPS (Immediate Payment Service)
- UPI (Unified Payments Interface)
Online GST payment through Internet banking is a seamless process. Log in to your bank’s website or mobile app, navigate to the tax payment section, and select GST as the tax type. Enter the challan details, like GSTIN, tax period, and the amount payable. Confirm the details and proceed with the payment.
For taxpayers who generate challans without logging into the GST portal, making the payment promptly is crucial. After generating the challan, visit your bank’s website or app, select the challan payment option, and enter the challan details. Complete the payment to avoid any late fees or penalties.
2. Offline Payments
There are two offline payment options available for GST payment:
- Over-the-counter payment (Cheque/Demand Draft/Cash): This mode involves physical payment using a Cheque, Demand Draft, or Cash at authorised banks.
- NEFT/RTGS (National Electronic Funds Transfer/Real Time Gross Settlement): These methods enable electronic fund transfers between banks.
Over-the-counter (OTC) payments are accepted up to a maximum limit of ₹10,000 per transaction. Processing time is typically 2-3 business days.
For NEFT/RTGS transfers, you’ll need to generate a Unique Transaction Reference (UTR) number from your bank. This UTR must be linked to your payment during the submission process to ensure seamless reconciliation. Electronic transfers are generally processed within one business day.
How to Pay GST Online?
Steps to Generate Challan Without login to Portal
1. Visit the official GST portal
Go to the official GST portal at https://www.gst.gov.in/.
2. Navigate to the “Payments” section
Navigate to the ‘Services’ tab and select ‘Payments’ from the drop-down menu.
3. Click on “Create Challan”
Under the ‘Payments’ section, click on the ‘Create Challan’ option.
4. Enter GSTIN Number
Once you clicked on create challan, This will prompt you to enter the GSTIN number. Once you have entered the Id, click to proceed.
5. Fill in challan details
You will be prompted to fill in details such as the type of tax like CGST, SGST, IGST and other relevant information. Ensure that all fields are filled out accurately.
6. Choose a payment method
After filling in the challan details, choose a payment method. GST payments online can be made through various modes, such as Net Banking, Debit/Credit Cards, etc., or over-the-counter at authorised banks.
7. Make the payment
If you pay GST online, you will be redirected to a secure payment gateway. Enter the payment details and follow the instructions to complete the transaction.
8. Generate challan counterfoil
A challan counterfoil will be generated after successful payment. Download and save this counterfoil for your records. It serves as proof of GST payment.
9. Track payment status
To ensure your payment has been successfully processed, go to the “Track Payment Status” option on the GST portal. Enter the Challan Identification Number (CIN) to check your payment status.
These were some crucial steps about how to pay GST challan online without logging in to the portal.
Steps to Generate GST Challan After Log in to Portal
If you choose to generate a challan after logging in, you can find the button to create it on your dashboard. The rest of the steps to fill and generate the challan remain the same.
How to Make GST Payments Offline?
These are the steps on how to pay GST challan offline:
1. Obtain a GST Payment Challan
- Log in to the GST portal using your credentials.
- Go to the “Services” tab, select “Payments,” and click on “Create Challan.”
- Fill in the required details, such as the type of tax, amount, and other relevant information.
- Click on “Generate Challan” to create the payment challan.
2. Download and Print Challan
Download the generated challan and take a printout. Ensure that all details on the challan are accurate.
3. Visit an Authorised Bank:
Take the printed challan to an authorised bank. Authorised banks include those empanelled by the Goods and Services Tax Network (GSTN) for accepting GST payments.
4. Submit the Challan to the Bank
Submit the printed challan and the payment amount in cash, cheque, or demand draft at the bank counter. The bank will provide a stamped acknowledgement as proof of payment.
5. Verify Payment Status
After making the offline payment, you can check the status by visiting 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 the payment status.
How to Check Challan History?
To check and retrieve your Challan history on the GST portal, follow these simple steps:
- Navigate to the GST homepage and Log in to the GST portal using your credentials (username and password).
- Click on “Services” from the menu.
- Choose “Payment” from the dropdown.
- Select “Challan History” and access a detailed record of transactions, simplifying the tracking and management of your GST payments.
What Is the Time Restriction to Complete the GST Payment Online?
For the GST payment, the time limit should be considered from the date of challan generation. While there are 15 days after the challan generation for offline payment, payment should be made immediately if the opted mode is online.
In the case of GST online payment, the following must be ensured during challan generation:
If net banking is chosen as the mode of payment, after selecting the bank’s name, click on the ‘Generate Challan’ option. It will generate the Common Portal Identification Number (CPIN).
If the challan is generated without logging in, then the taxpayer must pay immediately. However, if the challan is generated post-login, the taxpayer gets up to 15 days to complete the payment.
Let’s discuss the time limits for some payment modes in a detailed manner.
1. Net Banking
If you create a payment challan before logging in, you must pay the tax immediately. However, if you create the challan after logging in, you have up to 15 days to pay.
2. Offline Mode
A Challan Payment Identification Number (CPIN) is generated when you create the challan. This CPIN is saved automatically along with the challan copy. If you choose to pay offline, like over-the-counter at a bank, you have up to 15 days to complete the payment. The steps for offline payment will be explained in the next section.
How to Pay GST Payments Online at a Later Date?
Paying GST payments online later is a convenient option for taxpayers. The process varies depending on the mode of payment chosen.
Here are the steps for the different payment modes:
1. Through Net Banking
- Log in to the GST portal and navigate to Services > Payments > Challan History.
- Click on the relevant CPIN, select the bank, and complete the payment process.
- The electronic cash ledger will be updated immediately upon successful payment.
2. Through OTC Mode
- Manually fill in the remaining details on the challan and affix the authorised signature.
- Submit the filled-out challan copy and payment instruments to the chosen bank.
- The electronic cash ledger will be updated within a day or two.
3. Through RTGS/NEFT
- Fill in the remaining challan details, including RTGS/NEFT particulars.
- Submit the filled-out challan copy and remittance mandate to the remitting bank.
- After processing, you’ll receive a UTR and CIN. The GST portal will be updated subsequently.
What Are the Important GST Payment Forms?
Form Name |
Description |
Explanation |
| GST PMT-01 | Electronic tax liability register | Payment of taxes, interests, penalties, fees, or any other dues by taxpayers to the government will be debited to this register. |
| GST PMT-02 | Electronic credit ledger | ITC as self-assessed in monthly returns shall be credited to the ledger. |
| GST PMT-03 | Refund to be recredited | If a refund is rejected, the amount debited from the electronic credit ledger or electronic cash ledger, as applicable, will be recredited upon the order of the authorised officer. |
| GST PMT-04 | Discrepancy in electronic credit ledger | Form for notifying any discrepancies detected in the electronic credit ledger to an officer. |
| GST PMT-05 | Electronic cash ledger | All the deposits/payments made by a taxpayer in cash are credited to this ledger. |
| GST PMT-06 | Form for making GST payments | This form is for making actual GST payments, including CGST, SGST, IGST, and cess. Taxpayers can use various modes of payment, such as Internet banking, debit/credit card, NEFT/RTGS, or over-the-counter payment at authorised banks. |
| GST PMT-07 | Application for filing payment-related grievances | “The application is for taxpayers who have had the intended payment debited from their account, but the bank has not conveyed the Common Identification Number (CIN) to the Common Portal. Alternatively, the CIN may have been generated but not reported by the respective bank within 24 hours of the debit.” |
Conclusion
In conclusion, navigating GST payments requires attention to detail and adherence to regulations to ensure compliance and avoid penalties. Timely and accurate payments are essential for businesses to maintain their financial health and reputation. Embracing digital platforms for GST payment streamlines processes, enhances transparency, and fosters efficiency. Ultimately, staying informed about updates and leveraging available resources empowers businesses to manage GST payments effectively and contribute to a robust economy.
FAQs
1. Is GST paid every month?
Yes, GST is paid monthly for most businesses.
2. What is the 1 GST payment rule?
Registered buyers with a monthly value of taxable supplies (excluding exempt or zero-rated supplies) exceeding ₹50 lakh must pay at least 1% of the tax liability in cash. GST on inter-state purchases under the reverse charge mechanism.
3. Who has to pay 1% GST in cash?
Businesses with a monthly turnover of more than ₹50 lakh must pay 1% of their GST liability in cash.
4. What happens if GST is not paid?
Late payment attracts interest, penalties, and the potential cancellation of GST registration.
5. What is the due date for GST payments?
The due date is the 20th of the following month for most businesses.
6. Is it mandatory to make GST payments through the online portal?
GST payments can be made via online or offline methods. For both modes, a challan must be generated compulsorily on the GST Portal. It’s obligatory to pay taxes online if the tax liability exceeds ₹10,000.
7. What happens if I miss the deadline for GST payments?
Late payments attract interest at 18% p.a. and late fees.
8. Is there a penalty for late GST payments?
Yes, there are penalties for late payments. The fines for CGST and SGST amount to ₹25 each per day, adding up to a total of ₹50 per day starting from the day after the deadline until you file your return.
9. Can I set up reminders for GST payment due dates?
Yes, you can set up reminders on the GST portal or through authorised GST software.
10. Can GST payments be made in installments?
Yes, GST payments can be made in installments.
11. Can I make GST payments through a mobile application?
Yes, some authorised mobile apps allow GST payments.
12. Are there any tax benefits or incentives for prompt GST payments?
There are no specific tax benefits, but timely payments avoid interest and penalties.
