GST Payment Online – How to Pay GST Tax Online?

  • Blog|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 28 November, 2023

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As per the existing GST requirements, returns must be filed each month. The GSTR-1 has been filed for reporting Sales and GSTR-3B must be filed for reporting the ITC as well as make the requisite GST payments. 
 
The tax payable is categorized within 3 different categories:

IGST– 

This is payable when making an inter-State supply (payable to the Centre).

CGST–

This is payable if the supply is made within State (payable to the State).

SGST–

This is payable if the supply is made within State (payable to the State).

For instance, if the goods are sold from Mumbai to Delhi, then IGST must be paid. Alternatively, if the sale is made within Mumbai, then CGST and SGST are payable. Also, if the sale is made from Mumbai to the city of Pune, then again CGST and SGST must be paid. 
 

Who Should Pay the GST?

Typically, suppliers of goods & services are required to pay the Goods and Services Tax (GST). But, in certain cases, the recipients must pay the GST in accordance with the reverse charging mechanism in case of notified goods and services. In many other cases, GST is payable by the 3rd person, i.e., the government authority that takes the responsibility of TDS. 

When is a taxable individual liable to make GST payments?

A taxable individual is liable to pay GST while supplying the goods as mentioned within Section 12 and while supplying services as elaborated in Section 13. The payments are made in accordance with receiving of payment, issuing of invoice or the fulfilment of supply, whichever event takes place earlier. 

Primary Features of Goods & Service Tax Payment Procedure:

The features of the payment process within the GST system are as following: 

  • Payers must electronically generate challan via the GSTN Portal, irrespective of the payment mode they choose. 
  • Providing taxpayers with the facility to make tax payments through any modes or methods. 
  • Hassle-free online payment facility. 
  • Logically collecting the tax data in the electronically created format.
  • Quick remittance of taxation revenues within the account of the government. 
  • Paperless payments & transactions.
  • Speedy reporting and accounting. 
  • Reconciling all the receipts electronically.
  • Simplifying processes for banks. 
  • Storing digital challans in warehouse. 

The Process of Making GST Payments:

GST payments are made in the below mentioned ways:  1. By debiting of the taxpayer’s Credit Ledger, maintained within the Common Portal. Only the GST can be paid through this portal and no fee or penalty are debited in the ledger.  2. Payments are made in terms of cash by debiting the taxpayer’s Cash Ledger included within the Common Portal. Money is deposited within the ledger in distinct ways including E-payment (i.e., credit card, debit card and internet banking), RTGS, NEFT as well OTC payments made at the branches of the banks that have been authorized for accepting GST deposits.   Also, note that GST payments are made on a monthly basis by the 20th of the succeeding month. Besides, taxpayers who have qualified for the GST Composition Scheme must pay the taxes every quarter. The timing of making payments is between 0000 Hrs-2000 Hrs.

 

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

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