GST Payment Online – How to Make GST Challan Payment Online?

GST Payment Online is a digital method by which taxpayers settle their GST dues either by depositing cash into the electronic cash ledger and/or by offsetting their input tax credits. This article explains the entire process with detailed steps, payment modes, due dates, and tips for a smooth transaction.  

Key Takeaways  

• GST Payment involves depositing tax dues after adjusting available input tax credits.  
• Different categories of taxpayers have similar though well-defined processes for payment of GST.  
• Payment can be made online or offline by generating a GST challan.
• The mode you choose will affect timing and processing.
• Late payment attracts interest and penalties.

What is GST Payment?  

GST Payment is the process by which businesses and taxpayers deposit their tax liability into the government’s electronic cash ledger. This is done after offsetting the input tax credits and generating a GST challan. In effect, it ensures tax compliance and timely remittance of GST dues.

Who Should Pay GST?  

• Registered businesses and service providers under the GST regime
• Importers and exporters, as applicable
• Taxpayers who fall under prescribed turnover or threshold limits
• Taxpayers with nil GST returns may not need to make any payment if there is no tax liability

GST Payment Process  

1. Assess your tax liability after adjusting input tax credits.  
2. Determine if additional cash is required in the electronic cash ledger.  
3. Generate a GST challan either before or after logging into the GST portal or while filing GSTR-3B.  
4. Choose an online or offline mode of payment by selecting the appropriate option in the challan.  
5. Complete payment following the steps provided for net banking, debit/credit card, UPI, or offline modes like OTC/NEFT/RTGS.  
6. Once paid, the electronic cash ledger is updated, and you may track the transaction via the GST portal.

GST Payment for Different Taxpayers  

The GST payment process remains largely uniform, with slight nuances for various categories:  

1. Regular Taxpayers  

• Must use the PMT-06 challan while filing GSTR-3B  
• Can generate a challan before login, after login, or directly while filing returns  
• Payment details appear in the GSTR-3B filing  

2. Quarterly Taxpayers (QRMP Scheme)  

• Taxpayers who have opted into the QRMP scheme under GST, must deposit tax for the first two months of the quarter directly using PMT-06 by the 25th of the following month. 
• In the third month, when the quarterly return is filed, if there is any shortfall (typically reflecting the liability for that month), it must be paid on or before the due date.

3. Taxpayers Filing Nil GST Returns  

• Who have no sales/purchases or tax liability 
• Do not use a challan or make any payment for that period  

4. Composition Taxable Persons  

• Must summarize quarterly turnover details in challan CMP-08 and remit the applicable tax on or before the 18th of the month succeeding 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:  

• Go to the GST portal homepage and navigate to Services > Payments > Create Challan.
• Input your GSTIN (or temporary user/return preparer ID) and the captcha code.  
• Enter the tax amounts for CGST, SGST, IGST, etc., and select your desired payment mode (with bank details if applicable).  
• Re-enter your GSTIN in the designated field and click on “PROCEED”.  
• Click “DOWNLOAD” to save the generated challan copy.

After Logging In:  

• After signing in to your GSTIN account, find the “Create Challan” button on your dashboard.  
• Fill in the required tax details, select the preferred payment mode, and generate the challan.  
• The subsequent steps are similar to pre-login generation.

Methods for Making GST Payment  

Online Payments  

Online payment is made through internet banking and includes:  

• Net banking  
• Debit card/credit card (Note: Some cards may not be activated)  
• Immediate Payment Services (IMPS)
• Unified Payment Interface (UPI)

Important Notes for Online Payments:  

• Transactions made online update the electronic cash ledger automatically.  
• Payment via online modes can be made with or without logging into the GST portal (depending on the selected payment option).  
• Only a select list of banks is allowed for these transactions.

Offline Payments  

For those opting for offline payment modes, the available options include:  

• Over the counter (OTC) using Cheque/Demand Draft/Cash (max limit of Rs 10,000)  
• NEFT or RTGS where a printed GST challan is used along with a bank mandate and instrument details  

Important Notes for Offline Payment:  

• If your bank does not appear in the net banking list, you may opt for offline methods.  
• You must print the generated challan, manually fill in the necessary depositor and instrument details, sign, and submit it to the bank.  
• For RTGS/NEFT, after bank processing and receiving the Unique Transaction Reference (UTR), you must log in to link this UTR number against the respective challan.

GST Payment Due Date for Different Taxpayers

• Regular taxpayers: GST payment is due by the 20th day of the next 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: They file GSTR-3B quarterly by the 22nd or 24th day of the month following the end of the quarter (depending on the state); tax payment for the first two months of the quarter is due by the 25th of the following month via FORM GST PMT-06.

What is the Time Limit to Complete GST Payment?

The time limit to complete payment after creating a GST challan is 15 days from the date of challan generation. The challan (CPIN) is valid only for this period. If payment is not made, the challan automatically expires, and the taxpayer will need to generate a new challan for making the payment.

For challans generated without logging into the GST portal and using net banking, payment should be done immediately. 

How to Pay GST Offline  

Over the Counter (OTC):  

Step 1: Manually fill in depositor details and sign where required on the printed challan.  

Step 2: Submit the challan along with your cheque, demand draft, or cash to the designated bank branch.  

Step 3: The bank processes the payment within one to two days, updating the ledger subsequently.  

RTGS/NEFT:  

Step 1: On the printed challan, fill in the bank mandate details along with necessary cheque or account debit details and sign.  

Step 2: Submit the filled details and supporting documents to the bank.  

Step 3: Once processed (usually within a couple of hours), the bank issues a Unique Transaction Reference (UTR) number.  

Step 4: Log in to the GST portal, navigate to challan history, click on the appropriate CPIN, and link the UTR number to update the ledger.

Steps to Complete GST Payment at a Later Date  

If you generate a challan and complete the payment later, here’s what to do:

For Net Banking or Card Payments:  

• Log in to the GST portal and go to Services > Payments > Challan History.  
• Click the hyperlink beside your CPIN, select the bank, and complete the transaction.  
• Once confirmed, the receipt containing CIN is generated and the ledger updates immediately.

For OTC (Offline Mode):  

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

For RTGS/NEFT:  

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

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

GST Payment Forms  

PMT-06: The common GST challan form for most online and offline payments.  

CMP-08: Used primarily by composition taxable persons to report turnover and pay the requisite tax.  

Always ensure you use the correct form for your tax category and payment type.

How to Track GST Payment Status  

• Visit the GST portal go to Services > Payments > Track Payment Status either, “Before Logging In” or “After Logging In” based on your method.  
• Enter your GSTIN and CPIN to track your transaction’s status.  
• Alternatively, check your bank’s online transaction history to confirm that the payment is processed.  

This simple step helps you verify successful updates to your electronic cash ledger.

Interest on Late Payment of GST  

If you fail to pay or file returns by the due date, interest is levied at 18% p.a. for every day of delay on the outstanding tax liability. In addition to interest, late fees and penalties may also be imposed until the payment is completed. Always aim to complete your payment within the prescribed timeframe to avoid extra charges.