2019-01-24 11:09:08Finance and Accounting: TaxesEnglishOne of the biggest benefits of the GST regime is the convenient GST payment process. You can pay GST online by using balance in the...https://quickbooks.intuit.com/in/resources/in_qrc/uploads/2018/08/Small-business-GST-accounting-with-calculator-on-desk.jpghttps://quickbooks.intuit.com/in/resources/finance-and-accounting-taxes/gst-payment-process-how-to-pay-gst-online/GST Payment Process: How To Pay GST Online?

GST Payment Process: How To Pay GST Online?

9 min read

Try QuickBooks Invoicing & Accounting Software – 30 Days Free Trial.

The online GST payment system involves filing GST return, creating challan and finally payment of GST by the taxpayer. The GST portal provides are a number of modes via which a taxpayer can make such a payment. These include:

  • e-payment through net banking,
  • over the counter by physically depositing cash or instrument and
  • NEFT/RTGS using cheque or account debit facility

Heres a step by step guide to help you make GST payment online.

(i) Login to the GST Portal

To make GST payment online, visit gst.gov.in. Now, on the GST portal homepage login to your account using valid credentials such as your username and password.

(ii) Choose Create Challan Under Services Tab

After logging to your account, select Services tab and then choose Payments from the drop down list. Under the Payments sub – category, choose Create Challan from the list of options that so appear. Thus, your navigation path would be Services Payments Create Challan.
GST Payment Online

(iii) Create Challan

After you click the Create Challan option, the Create Challan page gets displayed. On this page, fill the details in the requisite fields. These details include GSTIN and the Captcha text.

Once you fill in the details, click the process button as shown in the image below.
GST Payment Online

(iv) Fill Details in Tax Liability Table

On clicking the Proceed button, the portal will take you to Tax Liability Table Page. You need to fill in the details in the fields such as CGST, IGST, Cess, interest, penalty and fees.

On doing so, the Total Challan Amount field and the Total Challan Amount (in words) field get auto-populated with the total amount of payment to be made. After filling the details in all the fields, you can select any of the three payment modes given: E-Payment, Over The Counter and NEFT/RTGS.

First we will show how to make GST Payment Online using the E-Payment option. In case you click on the E-Payment option, you need to click Generate Challan button at the bottom of the page.

(v) Authenticate OTP

Once you click on the Generate Challan button, an OTP Authentication box would get displayed in the screen. You need to enter the OTP sent on your registered mobile number in the Enter OTP field.

After filling in the OTP, click the Proceed button.

(vi) Select Payment Mode and Generate Challan

After clicking the Proceed button, the Challan gets generated. You can download the Challan by clicking the Download button.

But before downloading the Challan, select the E-Payment mode as Net Banking.

(vii) Choose a Bank

After you select the Payment Mode as Net Banking, the portal will display the list of banks from which you can choose a bank through which you want to make the payment.

After choosing the bank, select the checkbox for Terms and Conditions Apply. Then, click the Make Payment button given at the bottom of the page.

(viii) Make Payment

After you click Make Payment, the net banking page of your bank would be displayed. You would see the payment amount being displayed on your banks website. In case you need to make any changes to the payment amount, you will have to abort the transaction and create a new challan. However, if your payment is successful, you would be redirected to the GST portal where the transaction status would be displayed. Further, you would also see a link to your Payment Receipt. You can click this link to view the same. In addition to this, you can also make another payment by clicking on the MakeAnother Payment link towards the bottom right of the page.

(ix) Other Payment Modes

In addition to E-Payment as the payment mode, there are two other options available via which GST payment can be made. These include:

(I) Over the Counter

  • While filling the taxpayer details in the Create Challan section, you can choose Over the Counter as the payment mode for GST payment.
  • Once this is done, you need to select the bank where you would deposit cash or the requisite instrument such as cheque or demand draft.
  • After selecting the bank, check the option for cash or the desired instrument via which payment would be deposited and click Generate Challan.
  • This would result in the display of the OTP Authentication Box. Enter the OTP details sent on your registered mobile number in the Enter OTP field and click Proceed.
  • Following this the GST challan gets generated. You can download the same, take a print out and visit the selected bank for making GST payment. As mentioned above, you can make the payment by depositing cash, cheque or demand draft within the validity period of the GST challan

The payment status would be updated on the GST portal once the bank confirms the same.GST PAYMENT ONLINEGST PAYMENT ONLINE


  • While filling the taxpayer details in the Create Challan section, you can choose NEFT/RTGS as the payment mode for GST payment.
  • A Remitting Bank dropdown list would be displayed on the screen. From this dropdown select the remitting bank and click Generate Challan.
  • This would result in the display of the OTP Authentication Box. Enter the OTP details sent on your registered mobile number in the Enter OTP field and click Proceed.
  • Following this the GST challan gets generated. You can download the same, take a print out and visit the selected bank for making GST payment. A Mandate Form also gets generated at the same time.
  • You can make the payment via cheque through your account with the selected bank or use account debit facility to make the payment.
  • The bank will process the transaction which is confirmed by RBI within 2 hours.
  • On doing so, you would receive a Unique Transaction Number (UTR) on your registered email or mobile number. Once you receive the same, you can link the UTR with the NEFT/RTGS CPIN on the GST portal. This can be done by going to the Challan History and clicking the CPIN link. Simply enter the UTR and link it with the NEFT/RTGS payment.
  • The payment status would be updated on the GST portal after the confirmation is received from your bank. Such a payment would be updated in your Electronic Cash ledger.



List of Authorized Banks Offering Net Banking and Over the Counter Payments

Following is the list of banks that provide Net banking and Over the Counter payment facilities for GST payment.

S.No.List of Authorized Banks
1.Allahabad Bank
2.Andhra Bank
3.Bank of Baroda
4.Dena Bank
5.Bank of India
6.Central Bank of India
7.Canara Bank
8.Corporation Bank
9.HDFC Bank
10.IDBI Bank
11.ICICI Bank Ltd
12.Indian Bank
13.Indian Overseas Bank
14.Bank of Maharashtra
15.Oriental Bank of Commerce
16.J & K Bank
17.Punjab and Sind Bank
18.Punjab National Bank
19.State Bank of India
20.Syndicate Bank
21.Union Bank of India
22.UCO Bank
23.United Bank of India
24.Axis Bank
25.Vijaya Bank

The online ascii art generator can convert text to multiline text boxes. Try it now.

For small business owners, one of the biggest benefits of the Goods and Services Tax regime is the convenient GST payment process.

The GST system is almost entirely online, which means you can file and pay your taxes without leaving the office. When you follow the filing and payment deadlines each month, it’s a breeze to avoid costly penalties or late fees.

When Do You Need to Pay Your GST?

If you’re registered for the GST and are not part of the composition scheme, you need to file your taxes by the 10th of every month. This return covers the previous month. Any GST you owe is due by the 20th of each month. For example, you need to file your February return by March 10 and pay your February GST by March 20.

If you’re taking part in the composition scheme, you have a different payment schedule. In this case, you need to file your quarterly returns and pay the GST you owe by the 18th of the month that falls after the end of the quarter. Keep in mind the GST Council occasionally adjusts these dates if there are technical difficulties or other problems, so it’s a good idea to check the GST portal for updates.

Paying GST With Your Credit Ledger

When you’re ready to pay your GST, you can start with your credit ledger on the GST portal. This is where your input tax credit builds up over time. You can find your ledger in Form GST PMT-02. This credit can reduce your tax bill each month, so you don’t have to pay as much in cash. However, you can only use this credit to offset your taxes; you can’t use it to cover interest, penalties, or other fees.

When you get ITC, it’s split up into categories for integrated GST, state GST, and central GST. The government has specific rules for how you can use these different credits:

  • IGST credit is applied first to liability for IGST. If there is extra credit, it goes to your CGST, and then to your SGST.
  • CGST credit is used first to pay your CGST and then IGST.
  • SGST credit pays your SGST bill and any remainder is credited to your IGST.

In short, this means you can’t use your CGST credit to pay your SGST, and vice versa.

Paying GST With Your Cash Ledger

Once you use your credits to reduce your taxes, you can pay the rest using your cash ledger. The cash ledger is like a digital wallet — you put money in, and the government deducts it to pay your bill. In the GST portal, your ledger is Form GST PMT-05.

When you’re ready to settle your tax bill for the month, you must create a challan in the GST portal. This requires you to fill in the different amounts you owe for tax, interest, penalties, and fees. Once you generate this challan, you can opt to pay online using internet banking, a credit card, a debit card, or an NEFT or RTGS from any bank. If you like, you can also make over the counter payment through an authorized bank by cash, cheque, or demand draft. This is only an option for amounts up to Rs 10,000 per tax period.

Once your payment goes through, it’s credited to your cash ledger. When you generate the challan, you have 15 days to make your deposit.

In most cases, your business can handle every tax payment online. By keeping track of your credit balance and depositing your funds on time, you can reduce your liability and avoid late fees.

GST Payment Process How To Pay GST Online
Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles