GST payment refers to the payment of GST , which is a consumption-based tax levied on the supply of goods and services in many countries around the world. GST is designed to replace multiple indirect taxes like excise duty, service tax, and VAT (Value Added Tax) with a single unified tax system.
Making GST(Goods & Sales Tax payment) payments online in India is a convenient and efficient way to fulfill your (Goods and Services Tax) GST obligations. Here are the steps to make GST payments online:
Log in to the GST Portal:
- Visit the official GST portal (www.gst.gov.in).
Login to Your GST Account:
- Use your valid GSTIN (Goods and Services Tax Identification Number) and password to log in.
Access the Payment Dashboard:
- After logging in, go to the “Services” tab and select “Payments” from the drop-down menu.
Create a Challan:
- In the Payments section, click on “Create Challan.”
Fill in Payment Details:
You will be prompted to fill in the following details:
- Select the type of payment: GST, Central Tax, State Tax, Integrated Tax, or Cess.
- Select the applicable GST Act (e.g., CGST, SGST, IGST).
- Choose the mode of payment (Online or Offline).
- Enter the amount you want to pay, including tax, interest, penalty, or any other dues.
- After entering the payment details, click on the “Generate Challan” button.
Verify Challan Details:
- Review the challan details to ensure accuracy.
Select Payment Gateway:
- If you choose to pay online, you will be redirected to the payment gateway page.
Choose Payment Method:
- Select your preferred payment method, such as credit/debit card, net banking, NEFT/RTGS, or UPI.
Make the Payment:
- Follow the on-screen instructions to complete the payment process securely.
Receive Payment Confirmation:
- Once the payment is successful, you will receive a payment confirmation receipt with a Challan Identification Number (CIN). Save this receipt for proof of payment.
File GST Returns:
- After making the payment, you need to file the corresponding GST return, such as GSTR-3B or GSTR-1, to report your taxable transactions.
- Be sure to make your GST payments on time to avoid interest and penalties.
- Keep a record of all your payment receipts and transaction details for future reference and audit purposes.
- The GST portal and payment procedures may be subject to updates and changes, so it’s essential to stay informed about the latest GST notifications and guidelines.
What payment method should select for my GST payment?
When making a GST payment, you have the option to choose between two modes of payment: online and offline. The choice of mode depends on your convenience, the amount you need to pay, and your preferred payment method. Here’s a brief overview of each mode to help you decide:
Payment Gateway: When you opt for the online mode, you’ll be directed to a payment gateway where you can complete the transaction electronically.
Payment Methods: Online payments offer various payment methods, including credit/debit cards, net banking, NEFT/RTGS, and UPI (Unified Payments Interface).
Convenience: Online payments are convenient and quick, allowing you to make GST payments from the comfort of your home or office.
Recommended for Most Cases: Online payments are suitable for most GST payments, especially when the payment amount is moderate or when you need to make timely payments.
Challan Generation: In the offline mode, you generate a GST payment challan online but choose to make the actual payment at an authorized bank physically.
Payment Methods: Payments in the offline mode are typically made in cash or through a check/demand draft at an authorized bank.
Convenience: This mode may be chosen when online payment methods are not accessible or when making large payments.
Not Suitable for Last-Minute Payments: Offline payments may not be suitable for last-minute payments, as you’ll need to visit a bank branch during its operating hours.
Choosing the Mode: Here are some factors to consider when choosing the mode for making a GST payment:
Amount: For smaller and regular GST payments, online mode is more convenient. For larger payments, you may consider offline mode if necessary.
Location and Accessibility: Online payments can be made from anywhere with internet access. Offline payments require a visit to an authorized bank branch.
Urgency: Online payments are processed faster, making them suitable for last-minute payments to meet deadlines.
Payment Method: Consider your preferred payment method. Online mode offers a variety of options, while offline payments are usually made in cash or check.
Record Keeping: Online payments provide digital receipts and records, making it easier to maintain payment records.
GST payment for different taxpayers
Goods and Services Tax (GST) payments in India can vary depending on the type of taxpayer and their GST registration status. There are different categories of taxpayers under GST, including regular taxpayers, composition scheme taxpayers, and those registered under the GST TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) provisions. Here’s an overview of how GST payments work for different types of taxpayers:
Regular taxpayers are businesses that are required to file regular GST returns, such as GSTR-3B (monthly summary return) and GSTR-1 (outward supplies return).
They need to pay GST on the taxable supplies made by them to their customers.
GST payments are made monthly or quarterly, depending on the turnover and the scheme opted for (Regular or Composition).
Payments can be made online through various modes, including credit/debit cards, net banking, NEFT/RTGS, and UPI, or offline by generating a challan and paying at an authorized bank.
Composition Scheme Taxpayers:
Businesses with a turnover below a certain threshold can opt for the composition scheme.
Composition scheme taxpayers pay GST at a fixed rate on their turnover, and they file quarterly returns (GSTR-4).
They need to make GST payments quarterly, and this can be done online through the GST portal.
GST TDS Deductors:
Certain taxpayers, like government agencies and specified entities, are required to deduct GST at source (TDS) when making payments to suppliers.
TDS deductors need to deposit the deducted GST amount online through the GST portal and file periodic TDS returns (GSTR-7).
GST TCS Collectors:
E-commerce operators collect GST at source (TCS) on behalf of the sellers on their platform.
TCS collectors need to deposit the collected GST amount online through the GST portal and file periodic TCS returns (GSTR-8).
Input Service Distributors (ISD):
ISDs distribute credit of taxes paid on inputs and input services to their branch offices or units.
They need to file GSTR-6 to distribute credit and may need to make GST payments based on their specific transactions.
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