For newbie business owners, filing a GST return can sound like a complicated process. Though filing taxes aren’t really exciting tasks, they surely don’t have to be tiring ones either. Compared to making a GST payment offline with a bank, online payments are way easier and more accessible. If you understand the process once, there’s no turning back!
It takes less than a few minutes to generate a GST challan online. We hope this blog will guide you through the entire process and answer a few other questions you might encounter on the way.
- 1 What is a Goods & Services Tax (GST) Payment?
- 2 Types of GST Taxpayers
- 3 How to Pay GST Online: Step by Step
- 4 When should you make the payment?
- 5 Conclusion
- 6 FAQs on GST Payment
What is a Goods & Services Tax (GST) Payment?
The Goods & Services Tax (GST) is a periodical amount payable by a business to the government. It is a prerequisite for all businesses to stay compliant. It is an indirect tax levied by the government on businesses that deal with the supply of goods and services. It replaces a lot of other indirect taxes like the VAT(value added tax), service tax, purchase tax, excise duty, and more.
Here’s how you can calculate your GST payment
- Calculate your total GST payable
- Determine the eligible ITC (Input Tax Credit)
- Deduct the ITC from the outward tax liability
This will give you the total GST amount. To this, you must add any interest/late fees, if any, and subtract TDS/TCS charges levied on your payment.
You will arrive at the exact amount of GST payment if you follow this procedure.
Types of GST Taxpayers
On the basis of turnover and correlation, there are 3 categories of GST taxpayers:
1. Regular Taxpayers
Regular taxpayers are those who pay taxes if their annual turnover surpasses Rs. 1.5 crores (Rs.75 lakhs for the North Eastern states and Himachal Pradesh). They are obliged to file monthly returns based on the nature of their business.
2. Composite Taxpayers
Taxpayers or businesses that have an annual turnover of Rs.1.5 crores or below (Rs.75 lakhs for the North Eastern states and Himachal Pradesh) are required to file monthly returns. However, they need to fill only a single form and enjoy a lower tax rate.
3. Exempted taxpayers
A taxpayer or businessperson is exempted from paying or collecting tax on the supply of their goods or services if their yearly turnover is Rs. 40,000 or less (Rs.10 lakhs for North Easteren and Hilly States).
How to Pay GST Online: Step by Step
Here’s a step-by-step guide on how to make your GST filing online:
Step 1: Go to the GST payment portal: https://payment.gst.gov.in/payment/
Step 2: You can find the login option on the GST portal’s dashboard itself. If not, you can go to the ‘Services’ tab on the homepage. Go to Payments > Create Challan.
Step 3: Once you are logged in, you will have to enter different amounts under different heads like CGST, SGST, CESS, etc.
If you are unsure about the amounts or want to make changes before generating the challan, make sure you keep saving the details as you enter them. You can find the ‘Save’ button next to ‘Generate Challan’ on the right bottom.
Step 4: After you are done entering all the information, it’s time to make the payment. Choose your convenient mode of payment from the three options available on the site. The options are:
- E-payment (net banking, credit/debit card)
- Over-the-counter (in your nearest bank)
- RTGS/ NEFT
Step 5: Once you choose your payment option, you would have to re-enter your GSTIN/Other ID for the challan generation.
Step 6: When everything is done, click the “Generate Challan” option. You will shortly receive a confirmation message. You can then go ahead and download your challan.
That’s it! You are done! Wasn’t that pretty smooth and quick?
When should you make the payment?
Every registered regular taxpayer is required by laws to pay GST on or before the 20th of each month. Make all payments on time to avoid penalties and interest fees. If you make a late payment or pay less than your dues, you will be charged 18% interest.
As a business owner and a taxpayer, it is important for you to be aware of the different types, methods and rules of GST payments. Filing for the Goods & Services Tax is a mandatory requirement that is expected from every business and taxpayer in the country. If you decide to make the payment online, the whole process becomes easier and more convenient.
If you found this blog helpful, do let us know in the comments below! If you have any suggestions or points to add, feel free to do so too!
FAQs on GST Payment
1. What does GST stand for?
GST stands for Goods & Services Tax. It’s an indirect tax levied on products and services in India.
2. What are the types of GST?
There are 3 types of GST- CGST, SGST, and IGST.
- CGST stands for Central GST and is levied by the Central Government on the intrastate supply of goods and services
- SGST stands for State GST and is levied by the State Government on the intrastate supply of goods and services
- IGST stands for Integrated GST and is charged by the Central Government on the interstate supply of goods and services
3. Can I make the payment using my debit/credit card?
Yes, you can pay GST via internet banking/debit or credit cards.
4. What are the different methods of GST payment?
There are many ways through which you can make your payment:
- E-Payment (Internet Banking, Credit Card, Debit Card)
- Real-Time Gross Settlement (RTGS)/ National Electronic Fund Transfer (NEFT)
- Over-the-counter payment in certified banks
5. What is the penalty for the late payment of GST?
There are 3 categories of late payment of GST:
- Late fees for annual GST returns: Rs.100/day under CGST and Rs.100/day under SGST. So, a total of Rs.200/day is applicable.
- Late fees for non-annual GST returns: Same as annual GST returns (Rs.200/day)
- Late fees for filing NIL returns: Rs.50/day under CGST and Rs.50/day under SGST. So, a total of Rs.100/day is applicable.
6. Do I have to file GST every month?
Yes, a regular taxpayer must file two monthly returns and one annual return. However, special categories of taxpayers need to file under separate returns.