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Understanding Online and Offline GST Payment Procedures in India

This comprehensive guide details the process of Goods and Services Tax (GST) payments in India, covering both online and offline methods. It explains who is required to pay GST, outlines the steps for generating a GST challan, and specifies payment due dates for various taxpayer categories. The article also addresses crucial aspects such as the validity period for challans, how to track payment status, and the implications of late payments, offering taxpayers a clear understanding of their compliance obligations.

📖 5 min read read🏷️ GST Payment

Online Goods and Services Tax (GST) payment represents a digital approach for taxpayers to fulfill their tax obligations. This typically involves depositing funds into the electronic cash ledger or utilizing input tax credits. This guide outlines the comprehensive GST payment process, covering detailed steps, available payment methods, critical due dates, and advice for seamless transactions.

Key Insights into GST Payment

  • GST payment involves remitting tax amounts after factoring in eligible input tax credits.
  • Various taxpayer categories follow standardized yet distinct GST payment procedures.
  • Payments can be processed online or offline by generating a specific GST challan.
  • The chosen payment method influences processing time and operational flow.
  • Delays in payment incur interest and potential penalties.

What is GST Payment?

GST payment is the mechanism through which businesses and individuals subject to GST regulations transfer their tax liabilities to the government's electronic cash ledger. This action occurs after deducting any applicable input tax credits and creating a GST challan, ensuring adherence to tax laws and prompt payment of GST dues.

Who is Required to Pay GST?

  • Businesses and service providers registered under the GST framework.
  • Importers and exporters, where applicable.
  • Taxpayers whose turnover or specified limits necessitate GST payment.
  • Taxpayers submitting 'nil' GST returns might not need to make payments if no tax liability exists.

The GST Payment Process

  1. Calculate your tax liability by adjusting for input tax credits.
  2. Assess if additional funds are required in your electronic cash ledger.
  3. Create a GST challan either before or after logging into the GST portal, or during GSTR-3B filing.
  4. Select your preferred payment method (online or offline) on the challan.
  5. Complete the payment using options like net banking, debit/credit cards, UPI, or offline modes such as Over the Counter (OTC), NEFT, or RTGS.
  6. After successful payment, the electronic cash ledger is updated, and the transaction can be monitored via the GST portal.

GST Payment for Different Taxpayer Categories

The GST payment process is generally consistent, with minor differences for various taxpayer groups:

Regular Taxpayers

  • Must use the PMT-06 challan when submitting GSTR-3B.
  • Challans can be generated pre-login, post-login, or directly during return filing.
  • Payment details are automatically reflected in the GSTR-3B submission.

Quarterly Taxpayers (QRMP Scheme)

  • Those under the QRMP scheme must remit tax for the first two months of the quarter using PMT-06 by the 25th of the subsequent month.
  • For the third month, any remaining tax liability (often reflecting that month's dues) must be settled by the quarterly return's due date.

Taxpayers Filing Nil GST Returns

  • Individuals or entities with no sales, purchases, or tax liability for a period.
  • They are not required to generate a challan or make payments for that specific period.

Composition Taxable Persons

  • Must summarize quarterly turnover information in challan CMP-08.
  • The applicable tax must be paid by the 18th day of the month following the quarter.

How to Generate a GST Challan on the GST Portal

There are two primary methods to generate your GST challan for payment:

Before Logging In

  • Access the official GST portal and navigate to Services > Payments > Create Challan.
  • Enter your GSTIN (or temporary user/return preparer ID) and the captcha code.
  • Input the relevant tax amounts for CGST, SGST, IGST, etc., and select your preferred payment method (including bank details if applicable).
  • Re-enter your GSTIN in the designated field and click 'PROCEED'.
  • Click 'DOWNLOAD' to save a copy of the generated challan.

After Logging In

  • Upon logging into your GSTIN account, locate the 'Create Challan' button on your dashboard.
  • Provide the necessary tax details, choose your payment mode, and generate the challan.
  • The subsequent steps mirror those for pre-login challan generation.

Methods for Making GST Payment

Online Payments

Online payments are conducted via internet banking and encompass:

  • Net banking
  • Debit/credit card (note: some cards may not be enabled)
  • Immediate Payment Services (IMPS)
  • Unified Payment Interface (UPI)

Important Notes for Online Payments:

  • Online transactions automatically update the electronic cash ledger.
  • Payments can be made online either with or without logging into the GST portal, depending on the chosen option.
  • Only specific banks are approved for these transactions.

Offline Payments

For those preferring offline methods, options include:

  • Over the Counter (OTC) using a cheque, demand draft, or cash (with a maximum limit of Rs 10,000).
  • NEFT or RTGS, which require a printed GST challan along with a bank mandate and instrument specifics.

Important Notes for Offline Payment:

  • If your bank is not listed for net banking, offline options are available.
  • You must print the generated challan, manually complete depositor and instrument details, sign it, and submit it to the bank.
  • For RTGS/NEFT, after bank processing and receiving the Unique Transaction Reference (UTR), you need to log in to link this UTR number to the corresponding challan.

GST Payment Due Dates for Different Taxpayers

  • Regular taxpayers: GST payment is due by the 20th day of the month following the tax period.
  • Composition scheme taxpayers: GST payment is due by the 18th day of the month succeeding the quarter.
  • QRMP scheme taxpayers: GSTR-3B is filed quarterly by the 22nd or 24th day of the month after the quarter ends (state-dependent). Tax payment for the first two months of the quarter is due by the 25th of the following month using FORM GST PMT-06.

Time Limit to Complete GST Payment

After creating a GST challan, payment must be completed within 15 days from the generation date. The challan (CPIN) is only valid for this period. If payment is not made within this timeframe, the challan automatically expires, necessitating the generation of a new challan for payment.

For challans created without logging into the GST portal and utilizing net banking, payment should be processed immediately.

How to Pay GST Offline

Over the Counter (OTC):

  1. Manually complete depositor details and sign the printed challan where indicated.
  2. Submit the challan along with your cheque, demand draft, or cash to a designated bank branch.
  3. The bank typically processes the payment within one to two days, subsequently updating the ledger.

RTGS/NEFT:

  1. On the printed challan, fill in the bank mandate details, including necessary cheque or account debit information, and sign.
  2. Submit these completed details and supporting documents to the bank.
  3. Once processed (usually within a few hours), the bank provides a Unique Transaction Reference (UTR) number.
  4. Log in to the GST portal, navigate to your challan history, select the appropriate CPIN, and link the UTR number to update your ledger.

Steps to Complete GST Payment at a Later Date

If you generate a challan and complete the payment later, follow these steps:

For Net Banking or Card Payments:

  • Log in to the GST portal and proceed to Services > Payments > Challan History.
  • Click the hyperlink next to your CPIN, select your bank, and finalize the transaction.
  • Upon confirmation, a receipt containing the CIN is generated, and the ledger updates instantly.

For OTC (Offline Mode):

  • On the printed challan, fill in any missing information, such as instrument details, and sign it.
  • Submit the challan along with cash, cheque, or demand draft to the designated bank branch.
  • The bank processes the transaction within one to two days, after which the ledger is updated.

For RTGS/NEFT:

  • Complete the mandate by recording the necessary depositor, cheque, or account details, and sign the document.
  • Submit the printed documents with the challan at the bank.
  • After receiving the UTR number, log in to the GST portal, locate your CPIN under challan history, and link the UTR to the challan.

Always verify if your payment status shows 'Awaiting Bank Confirmation' or similar. If the bank confirms payment but the electronic cash ledger is not updated, file a grievance using Form PMT-07 on the GST portal.

GST Payment Forms

  • PMT-06: This is the standard GST challan form used for most online and offline payments.
  • CMP-08: This form is primarily used by composition taxable persons to report their turnover and remit the required tax.

Always ensure the correct form is utilized for your specific tax category and payment type.

How to Track GST Payment Status

  • Visit the GST portal and navigate to Services > Payments > Track Payment Status, selecting 'Before Logging In' or 'After Logging In' based on your initial challan generation method.
  • Enter your GSTIN and CPIN to monitor the status of your transaction.
  • Alternatively, check your bank's online transaction history to confirm that the payment has been processed successfully.

This straightforward step assists in verifying successful updates to your electronic cash ledger.

Interest on Late Payment of GST

Failure to pay GST or file returns by the stipulated due date incurs an annual interest rate of 18% on the outstanding tax liability for each day of delay. Besides interest, late fees and penalties may also be imposed until the payment is fully settled. It is crucial to complete payments within the prescribed timeframe to avoid additional charges.

Further Reading

Frequently Asked Questions

What is a GST challan and why is it important?
A GST challan is a unique document generated by taxpayers to deposit their GST liabilities. It is crucial because it acts as proof of payment and facilitates the crediting of funds to the government's electronic cash ledger, ensuring compliance with tax regulations.
Can I make partial GST payments, or must the full amount be paid at once?
Generally, GST payments are expected to cover the full assessed tax liability for a given period. While challans are generated for specific amounts, any utilization of input tax credit must be accounted for before determining the cash payment portion. If you need to pay for different components (CGST, SGST, IGST), these are specified within a single challan.
What happens if the GST electronic cash ledger is not updated after payment?
If your bank confirms the payment but your electronic cash ledger on the GST portal does not reflect the updated balance, you should file a grievance using Form PMT-07 on the GST portal. It's also advisable to contact your bank with the transaction details for further assistance.
Are there any specific exemptions for GST payment, such as for small businesses?
While there aren't direct 'exemptions' from payment for all small businesses, those operating below specified turnover thresholds may not be required to register for GST. Additionally, taxpayers under the Composition Scheme pay a lower, fixed percentage of their turnover, simplifying their compliance compared to regular taxpayers.
How do I correct errors made during the GST payment process?
Errors in GST payment, such as making an excess payment, will typically be reflected in your electronic cash ledger, allowing you to use the surplus for future tax liabilities. If a refund is desired for excess payment, Form GST RFD-01 can be filed on the GST portal. For other errors like incorrect head selection, the process can be more complex and might require specific grievance filing or adjustments in subsequent returns.

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