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GST Payment Modes

Last updated : December 23rd, 2022 09:07 pm

GST Payment Modes

The taxpayer can make GST payment through online, offline or by LEDGERS. Goods and Services Tax (GST) refers to a tax on the supply of goods or services or both with certain exceptions on few listed goods and services. To pay taxes for the supply of goods or services rendered, the GST Council provides options to the taxpayer. GST shall also act as destination based consumption tax, hence, the tax shall apply based on the place where the goods and services, finally consumed. In this article, let us look at the various GST payment modes available for persons having GST registration to pay their GST dues.

Who Should Pay GST?

Any person provides 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. However, to GST, the person must first register with GST.

Click here to read on Registration Procedure and Documents Required for GST Registration

Options to make GST Payment

The following mentions the options to make GST payments for the taxpayer if the person exceeds the exemption limit:

• GST Portal (After registering with the GST portal by providing required documents)
• LEDGERS Software
• At the registered bank (Through the Counter or NEFT/ RTGS)

Online GST Payment

Along with the creation of GST challan, the GST payment can also be done in the same portal through internet banking facilities. The taxpayer can follow the procedures for making online GST payment:

STEP 1: Access the GST portal.

STEP 2: Click the Services > Payments > Create Challan option.

STEP 3: The Portal displays the ‘Create Challan page’. In the GSTIN/UIN/TRPID/TMPID field, enter your GSTIN.

Note:

Persons having different types of GST registration must make GST payment using different modes after logging in to the GST portal, as listed below:

• Bodies, Embassies, Government Offices or Other Notified persons need to use Unique Identification Number (UIN).
• Tax Return Preparers need to us Tax Return Preparer Identification Number (TRPID) to generate the challan.
• Unregistered dealer having temporary ID need Temporary Identification Number (TMPID) to generate the challan.
• Persons applying for Casual Taxable Person Registration must use the ARN Number.

STEP 4: In the Type, the characters as displayed below field, enter the captcha text.

STEP 5: Click the PROCEED button.

STEP 6: In the Tax Liability Details grid, enter the details of payment to be made. The Total Challan Amount field and Total Challan Amount (In Words) fields are auto-populated with the total amount of payment to be made.

STEP 7: Select the Mode of E-Payment.

STEP 8: Click the GENERATE CHALLAN button.

• The OTP Authentication box would appear. In the Enter OTP field, enter the OTP sent on the registered mobile number of the taxpayer whose GSTIN/UIN/TRPID/TMPID is entered.
• Click the PROCEED button.
• The Challan is generated.

STEP 9: Select the Mode of E-Payment as Net Banking.

1. Select the Bank through which you want to make the payment.
2. Select the checkbox for Terms and Conditions apply.
3. Click the MAKE PAYMENT button.

NOTE: In case of successful payment, you will be re-directed to the GST Portal where the transaction status will be displayed. The payment receipt is displayed. To view the receipt, click the View Receipt link. You can also make another payment by clicking the MAKE ANOTHER PAYMENT button.

Offline GST Payment at Bank

In case of offline payment through a bank:

1. In the Payment Modes option, select the Over the Counter as the payment mode.
2. Select the Name of Bank where cash or instrument is proposed to be deposited.
3. Select the type of instrument as Cash/ Cheque/ Demand Draft.
4. Click the GENERATE CHALLAN button.
5. After clicking the generate challan button, it generates the challan.
6. Take a print out of the Challan and visit the selected Bank.
7. Pay using Cash/ Cheque/ Demand Draft within the Challan’s validity period
8. After receiving the confirmation from the bank, the GST Portal shall update the status of the payment made by the taxpayer.

GST Payment through NEFT/RTGS

1. In the Payment Modes option, select the NEFT/RTGS as the payment mode.
2. In the Remitting Bank drop-down list, select the name of the remitting bank.
3. Click the GENERATE CHALLAN button.
4. The OTP Authentication box appears. In the Enter OTP field, enter the OTP sent on the registered mobile number of the taxpayer whose GSTIN/UIN/TRPID/TMPID is entered.
5. Click the PROCEED button.
6. The GST Portal generates the Challan.
7. Take a print out of the Challan and visit the selected Bank. The GST Portal simultaneously generates the Mandate form.
8. Pay using Cheque through your account with the selected Bank/ Branch. You can also pay using the account transfer facility.
9. The bank shall the process the transaction and RBI shall confirm the same within 2 hours.
10. Once you receive the Unique Transaction Number (UTR) on your registered e-mail or mobile number, you can link the UTR with the NEFT/RTGS CPIN on the GST Portal. Go to Challan History and click the CPIN link. Enter the UTR and link it with the NEFT/RTGS payment.
11. After receiving the confirmation from the bank, the GST Portal shall update the status of the payment made by the taxpayer.
12. The GST Portal shall then update the payment in the Electronic Cash Ledger to their respective minor/major heads.
13. In case of GST payment problems, you can create a ticket by following the steps provided here.

Click here for Temporary GST Registration, GST REgistration for Foreigners or Cancelling the GST Registration.