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GST payments can be made either online or offline. Business must assess the tax that needs to be paid in cash after the offset of the input tax credit availed.
Thereafter, it must generate a GST challan either before or after logging into the GST portal or while filing the GST return.
This article provides step-by-step instructions to follow for completing GST payments for all types of taxpayers under GST.
GST payments process mostly remains the same for all taxpayers under GST. If there is a sufficient cash balance in the electronic cash ledger, then payment is not required. In other words, if there is no sufficient cash balance, then the taxpayer must use a challan for depositing money into the cash ledger, using prescribed modes of payment. Here is an overview of the payment process for various categories or types of taxpayers:
They must use the PMT-06 challan for making any payment towards the electronic cash ledger, around the time of filing GSTR-3B. The details thereof will appear in GSTR-3B. Further, they can create a challan and pay towards it either before login or after login or while filing GSTR-3B returns. The steps are detailed in the further sections of the article.
These taxpayers are those who have opted into the QRMP scheme under GST. They must deposit tax in the first two months of a quarter directly using the PMT-6 and make payment while filing GSTR-3B for the last month of the quarter. The snippet given below summarises the process.
The Quarterly Return filing and Monthly Payment of taxes (QRMP) scheme became applicable from January-March 2021 quarter onwards. Under this scheme, the taxpayers can file GSTR-1 and GSTR-3B after the end of the quarter. Accordingly, most of the quarterly GSTR-1 filers are migrated into the scheme. Their payment process varies slightly from the rest of the taxpayers.
The tax payments must be made by the 25th of next month for the first and second month of the quarter, i.e., for example, January and February for Jan-Mar 2021 quarter.
For such taxpayers, while making payment in the form PMT-06, they must select the ‘Monthly payment for quarterly return’ option as the reason and choose either of two methods for payment- Fixed sum or Self-assessment.
For the detailed steps, you may refer to our article: “Steps to Make Tax Payments Under the QRMP Scheme”
These taxpayers have no sales or purchases or tax payable for the relevant tax period, either for the month or quarter. They need not use the challan or make any payment. For more details, refer to our article on “Nil filing of GSTR-3B”.
Businesses must choose the mode of GST payment while generating the GST challan in the form PMT-06. The choice made depends upon the availability of time to file the GST return before the due date, convenience, the banker, etc.
The following are the modes of GST payment available on the GST portal:
1. Online payments
2. Offline payments
You have two ways to generate GST challan, either by logging in to the GSTIN account on the GST portal or before the login. There is not much of a difference between the two.
If the taxpayer chooses to generate challan before logging in, the following are the steps to generate challan:
Step 1: On the GST portal’s homepage, navigate to the Services > Payments > Create Challan option.
Step 2: Enter the GSTIN or the ID of a temporary user or tax return preparer or UN body. Enter the captcha code.
Step 3: Enter amounts for CGST, SGST, IGST or other heads, as applicable. Thereafter, choose the relevant payment mode with bank details if applicable.
Step 4: Re-enter the GSTIN/Other ID for Challan Generation field and click on the ‘PROCEED’ button.
Step 5: Click on the ‘DOWNLOAD’ button to download the challan that is generated.
If a taxpayer chooses to generate challan after logging in, he can find the button to create challan on your dashboard itself. The rest of the steps to fill and generate challan remains the same.
For that, he must enter the amounts in respective heads and choose the desired payment mode.
The time limit available for completing the GST payment must be considered from the challan generation date. Payment must be completed immediately in case of pre-login challan creation for net-banking mode. This will be 15 days where an offline mode is chosen. At the time of entering the details for challan generation, the following must be ensured:
If net banking is chosen as the mode, select the bank name and click on ‘Generate challan’.
The Common Portal Identification Number (CPIN) gets generated.
The taxpayer must finish making payment immediately in case of the pre-login challan creation. On the other hand, in the case of post-login challan creation, a taxpayer can wait up to 15 days to complete the payment, the steps given in the next section.
If offline mode such as OTC or NEFT/RTGS is chosen, enter bank details where cash is deposited or remitted and click on ‘Generate challan’.
The CPIN gets generated with the challan copy and gets saved automatically. There is a time limit of up to 15 days to complete paying via the offline modes, the steps of which are given in the next section.
Suppose any details in the challan are wrong and the taxpayer is yet to make the payment, then he must freshly generate a new challan with the correct particulars. No action needs to be taken on the old challan as it automatically expires after 15 days. To track the payment status anytime later on the GST portal, the CPIN must be used.
Step 1: Log in to the GST portal and go to the Services > Payments > Challan history.
Step 2: Click on the hyperlink against the appropriate CPIN listed down.
Further, select the right bank from the list of banks displayed for card payment or net banking and finish the payment.
Receipt gets generated with CIN upon successful payment. The electronic cash ledger gets updated immediately.
Step 1: Fill up the remaining particulars asked on challan manually with the authorised person’s signature.
Step 2: Submit the filled-in particulars, the challan copy, instruments such as cheque or DD or cash to the appropriate bank, earlier chosen while generating challan.
In a day or two, the electronic cash ledger gets updated with the payment.
Step 1: Fill up the remaining particulars asked on challan, including RTGS/NEFT.
Also, fill up the mandate with the depositor details, cheque details and manually sign it.
Step 2: Submit the filled-in particulars, the challan copy, cheque and mandate to the remitting bank earlier chosen while generating challan. Instead of a cheque, one can use the account debit facility too.
Within two hours, the bank will process this. The taxpayer will receive the Unique Transaction Number (UTR) and Challan Identification Number (CIN) on the registered e-mail ID or mobile number.
Step 3: Log in to the GST portal, go to challan history.
Step 4: Click on the hyperlink against the appropriate CPIN. Enter the UTR number and click on ‘Link UTR’. The electronic cash ledger gets updated.