Make GST Payments Online: Instant and Hassle-Free

Goods and Services Tax (GST) in India has transformed the way businesses are operating. It is more than just a tax reform, it has streamlined the indirect taxation system and has brought transparency and uniformity across states. However even eight years after its introduction, there are many businesses especially startups and MSMEs who still struggle with understanding the GST payment process, due dates, challans, and the compliance requirements. In this blog we have tried explained in a simplified way about GST Payments. Whether you are an experienced entrepreneur or a new business owner, this blog will ensure that you have complete clarity on GST payments. Read to know more.

What Is GST Payment?

GST payments mainly refers to the tax amount that a registered business should pay to the government after adjusting its input tax credit (ITC) against output tax liability. In simpler terms:

• Output Tax= GST collected on sales
• Input Tax Credit= GST that is paid on purchases
• GST Payment= Output Tax – ITC (In case if output is higher)

If ITC exceeds output tax, the business doesn’t need to pay anything and may even claim a refund under certain conditions.

Who Needs to Pay GST?

GST payment are mandatory for:

• Registered taxpayers who is under the regular GST scheme
• E-commerce operators
• Taxpayers under reverse charge mechanism (RCM)
• TDS/TCS deductors under GST
• Casual taxable persons
• Non-resident taxable persons

Composition scheme taxpayers pay GST at quarterly fixed rates but follow a different system.

Types of GST Payments

A GST payment can include different components:

1. IGST (Integrated GST)

This is applied on interstate transactions and imports.

2. CGST (Central GST)

This is collected by the central government on intrastate supplies.

3. SGST (State GST)

This GST is collected by the respective state government on intrastate supplies.

4. Cess

This is applicable only for select goods like tobacco, aerated drinks, luxury cars, etc.

5. Interest, Penalty & Late Fee

These are the additional payments that arises from delays or non-compliance.

How Is GST Payment Calculated?

Understanding GST calculation is extremely important for avoiding errors. Here we are providing a simplified example of a calculation:

• Total output GST collected is Rs. 50,000
• Input tax credit available is Rs. 30,000
• GST payable: Rs. 50,000 – Rs. 30,000 = Rs. 20,000

If ITC is Rs. 60,000 instead of Rs. 30,000:

• Excess ITC = Rs. 10,000 (that will be carried forward or refunded where applicable)

GST Payment Due Dates

GST payments are closely related to the GST return filing. The due dates mainly depend on the type of taxpayer.

1. For Regular Taxpayers

• GST PMT-06 (for QRMP taxpayers):25th of the following month
• GSTR-3B Payment:20th of the following month
• GSTR-1 (invoice furnishing):11th of the following month

2. For Composition Scheme Taxpayers

• Quarterly payment:18th of the month that follows the quarter
• Annual return:30th April (next financial year)

3. For Non-residents

Daily payment through advance tax depending on the estimated turnover. Missing these deadlines will lead to interest and late fees.

Modes of GST Payment

The GST portal has multiple payment options:

1. Online Modes

• Net banking
• Debit/credit card (for select banks)
• Immediate Payment Services (IMPS)
• NEFT/RTGS
• Unified Payments Interface (UPI) – available with certain banks

2. Offline Mode

• Over-the-counter payment is acceptable only for Rs. 10,000 per challan at authorized banks via:
  • Cash
  • Cheque
  • Demand draft

How to Make GST Payment through the GST Portal?

The GST portal (www.gst.gov.in) provides a simplified method to make GST Payments. Here’s the detailed process:

Step 1: Log in to the GST Portal

Use your GSTIN and password for logging into the GST Portal.

Step 2: Navigate to the Payment Section

Go to Services - Payments – then Create Challan.

Step 3: Enter Tax Liability

You select and enter the amounts under:

• IGST
• CGST
• SGST
• Cess

The amounts are mainly auto-populated when filing GSTR-3B.

Step 4: Choose the Payment Mode

You select:

• Net banking
• Credit/debit card
• NEFT/RTGS
• Over-the-counter payment

Step 5: Generate the Challan

Click “Generate Challan”. Then a CPIN (Challan Payment Identification Number) is created.

Step 6: Make Payment

You will get redirected to your bank’s portal for completing the payment.

Step 7: Receive CIN

After the successful payment, you receive a CIN (Challan Identification Number) which will confirm the payment.

Step 8: Payment is Reflected in the Cash Ledger

Your tax liability will be automatically adjusted when you file GSTR-3B.

What Happens If You Don’t make GST Payment on Time?

If you don’t make GST Payments on time, below we have mentioned the things that you can face:

Delays can lead to:

1. Interest

• 18% per annumon unpaid tax
• 24% per annumif excess ITC is wrongly claimed

2. Late Fee

For GSTR-3B and GSTR-1:

• 50 per day (Rs. 25 CGST + ?25 SGST)
• 20 per day for NIL returns

3. Penalty

Penalty can range from Rs. 10,000 to 100% of tax depending on the nature of violation.

4. Blocking of E-way Bill generation

Non-payment will affect the business operations.

Common GST Payment Mistakes to Avoid

Avoiding common mistakes while making GST Payments can save time and penalties:

• Not tracking the input tax credit
• Paying under the wrong head (e.g., CGST instead of IGST)
• Missing the payment deadline
• Using the wrong GSTIN
• Failing to download the challan receipts
• Not verifying payment status

GST Payment Under Reverse Charge Mechanism (RCM)

Under RCM, the recipient of goods/services make GST Payments instead of the supplier.

Examples:

• Legal services
• Transport services (GTA)
• Import of services
• Certain notified goods

RCM payments cannot be made using ITC. you will have to pay in cash.

GST Payment for QRMP Scheme Taxpayers

QRMP taxpayers file GSTR-3B quarterly but they should pay tax monthly through PMT-06 using one of two below mentioned methods:

1. Fixed Sum Method (FSM)

A pre-filled challan of 35% of previous quarter’s tax.

2. Self-Assessment Method

Calculate actual output tax after subtracting the ITC for the month.

How to Check GST Payment Status?

To verify GST payment:

1. First log in to the GST portal
2. Go to Services then Payments then Challan History
3. Enter CPIN/CIN
4. View status or you can download challan

How to Request Refund of Excess GST Payment?

In case if excess GST has been paid:

1. File RFD-01on the GST portal
2. Upload supporting documents
3. Refund is processed only after verification

Refunds usually apply to:

• Excess cash ledger balance
• Export of goods/services
• Inverted duty structure

Conclusion

GST payment process may seem complicated at first, but once you understand the structure, the output tax, ITC, payment process, challans, and deadlines, it becomes extremely efficient and convenient. The GST system is built to provide transparency especially with digital payment options and automated ledger updates. For all kinds of businesses, timely and accurate GST payment is not just a requirement but is a vital step for maintaining financial discipline and avoiding penalties. If you have any queries, get in touch with Online Legal India.

FAQs

1. What if I pay GST under the wrong head?

In such a case you are not allowed to change the allocation, but you can claim refund from the wrong head and pay again under the correct head.

2. Can I Make GST Payment through a credit card?

Yes, you can so that. However, you will have to pay only with selected banks authorized by the GST portal.

3. What is CPIN and CIN in GST payment?

• CPIN: Generated before payment (Challan ID)
• CIN: Generated after successful payment (Bank confirmation)

4. Can I Make GST payment allowed without logging in?

Yes, you can create a challan without logging in, however filing returns requires login.

5. Is ITC  used to pay all types of GST liability?

ITC is for paying:

• IGST
• CGST
• SGST

But one cannot use it for:

• RCM
• Interest
• Penalty
• Late fees

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Online Legal India is a digital platform. If you require legal assistance, we strongly recommend consulting a qualified lawyer or law firm.