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2019-08-26 12:52:14GST CenterEnglishEvery registered taxpayer or any other person making payment on his behalf is required to generate a payment challan on the GST portal for...https://quickbooks.intuit.com/in/resources/in_qrc/uploads/2019/08/GST-Payment-Challan-e1566804073417.jpghttps://quickbooks.intuit.com/in/resources/gst-center/gst-payment-challan/GST Payment Challan: Format and Rules For GST Payment

GST Payment Challan: Format and Rules For GST Payment

10 min read

The online payment of GST through GST Payment Challan has made tax payment easy as well as brought about increased transparency. Therefore, there is a proper process for the online payment of GST via the common portal. Accordingly,  you have access to three electronic ledgers for the payment of GST as a registered taxpayer. These include:

Electronic liability register maintains all your liabilities under GST as a taxable person . It reflects the amount of tax due, interest, penalty, late fee or any other amount that you have to pay on the common portal. Thus, your Electronic Liability Register gets debited when you pay any amount of demand or any other amount as a registered person.

On the other hand, Electronic Credit ledger showcases the amount of Input Tax Credit available to you as a registered taxpayer. Thus, the amount available in the electronic credit ledger is utilized in making payments towards your outward tax liability as a registered taxpayer. Hence, your Electronic Credit Ledger gets credited with every claim of input tax credit that you are eligible for claiming as a registered tax payer.

Further, your Electronic Cash Ledger gets credited when any amount of deposit is made on the GST portal. Thus, cash available in your Electronic Cash Ledger is used to pay any amount of tax due, interest , penalty, late fee or any other amount payable. Therefore, amount deposited on GST portal is credited to the Electronic Cash Ledger.

So, let’s have a look at the GST Payment Challan and its relevance as we now have an understanding of the three electronic ledgers.

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What is GST Payment Challan?

Section 87(2) of the CGST act, 2017 lays down the provisions for payment challan under GST. Accordingly, every registered taxpayer or any other person making payment on his behalf is required to generate a payment challan on the GST portal for paying GST.

Thus, the first step towards making payment of GST  is to generate GST Payment Challan. This Challan is generated in Form GST PMT – 06 on the common portal. Therefore, the taxpayer or any other person making payment on his behalf needs to fill the following requisite details:

  • the amount of tax to be deposited
  • interest,
  • penalty,
  • fees or
  • any other amount

Points To Remember

Every taxpayer must know the following two things when creating GST Payment Challan on the GST Portal.

The GST Payment Challan generated in Form GST PMT – 06 on the common portal is valid for a period of 15 days from the issue date.
The person supplying OIDAR services from outside India to a non – taxable online recipient shall also generate GST Payment Challan. This is done through board’s payment system – Electronic Accounting System in Excise and Service Tax from the date as notified by the Board.

Creating GST Payment Challan while Paying GST

Here’s a step by step process of depositing GST online, from creating GST Payment Challan to payment of GST.

Login to GST Portal

Visit the government GST portal – https://www.gst.gov.in/. Login to your account by filling your username and password details.

Various Modes of Payment for GST

There are various modes of payment via which you can deposit GST as a taxpayer. Thus, you or any other person making payment on your behalf need to select the preferred mode of payment while generating Form GST PMT – 06. These include:

Internet Banking Through Authorized Banks

  • Under this,  you can choose to make tax payment via the savings or current account of your bank.
  • In case of a Debit/Credit Card, you need to register the card from which the payment is to be made through the GST portal.
  • Simply login to your GST account and fill the necessary details as well as select internet banking as the payment option.
  • Then, simply generate payment challan after filling all the detials. The payment challan thus generated contains the CPIN number which is Common Portal Account Number. This is the beneficiary account number of the government in which money is to be deposited. The challan contains other details such as the IFSC code of the beneficiary bank, your GSTIN details etc.
  • Once you have the bank details in the challan, click on E – Payment tab. You would be able to see the list of authorized banks via which GST can be paid.
  • Simply select the bank with which you hold an account. On selecting the specific bank, the portal would take you to the selected bank’s website. Here, you can fill the requisite details and make the payment.

National Electronic Fund Transfer (NEFT) or Real Time Gross Settlement (RTGS) from any Bank

  • Simply login to your GST account.
  • Fill the necessary details and select NEFT/RTGS as the payment option.
  • Once you select NEFT/RTGS as the payment mode, you would see a list of banks authorized for GST payment.
  • Select your bank and click on generate challan and download the same.
  • The payment challan you get contains the details such as the CPIN which is Common Portal Account Number. This is the beneficiary account number of the government in which money is to be deposited. The challan contains other details such as the IFSC code of the beneficiary bank, your GSTIN details etc. Use these details to then make payment of GST.
  • In addition to the Payment Challan i.e. Form GST PMT – 06, there is a Mandate Form that is generated. This is only in case the GST is paid via NEFT/RTGS. Furthermore, this form is also valid for a period of 15 days from the issue date.
  • Take a printout of this form and submit the same to your bank after filling the requisite details. Once you do so, the bank will provide you with a Unique Transaction Reference Number (UTR). It is a unique 16 digit number that is generated for identifying each unique transaction. Further, it is generated by the bank that facilitates the transaction.
  • Once you receive the UTR number, go back to the portal. Click ‘Services tab’, select ‘Payments’ and further select ‘Challan History’ from the dropdown. Click on the CPIN number representing the Challan that you generated with NEFT/RTGS as the payment mode.
  • Enter the UTR and confirm the same. Then click on the ‘Link UTR’ tab. Once you link the UTR, you would be able to see the impact of your transaction in your electronic cash ledger.

Over the Counter Payment through Authorized Banks

  • Simply login to your GST account and generate payment challan, after filling the necessary details and selecting ‘Over the Counter’ as the payment option.
  • Once you select ‘Over the Counter’ as the payment mode, you would see a list of banks authorized for GST payment. Select your bank and method of payment such as cash, cheque or demand draft.Then, click on generate challan and download the same.
  • The payment challan you get contains the details such as the CPIN which is Common Portal Account Number. This is the beneficiary account number of the government in which money is to be deposited. The challan contains other details such as the IFSC code of the beneficiary bank, your GSTIN details etc. Use these details to then make payment of GST.
  • Take a printout of this challan and deposit the same with your bank along with cash, cheque or demand draft for the payment of GST.

Remember, that GST can be paid via Over the Counter for deposits not exceeding Rs. 10,000 per challan per tax period.

Further, it must be noted that the limit of Rs. 10,000 per challan per tax period in case of Over the Counter payment is not applicable to payment made by:

  • government departments or any payments made by persons notified by the commissioner in this behalf
  • proper officer or any other officer authorized to recover outstanding claims from registered or unregistered person. This would also include recoveries made via attachment or sale of immovable properties.
  • any other officer authorized to collect amounts via cash, cheque or demand draft as a part of an investigation or enforcement activity

Persons Giving OIDAR Services

In addition to this, person supplying OIDAR services from outside India to a non – taxable online recipient must also deposit GST. This can be done via international money transfer through Society for Worldwide Interbank Financial Telecommunication payment network. Also, such a payment is to be made from the date notified by the Board.

Generation of CIN

Finally, any commission payable for making payment of GST is borne by the person making the payment.

After the amount gets successfully credited to the concerned government account, a GST payment receipt is generated that contains the CIN. This is Challan Identification Number which is generated by the collecting bank. After receiving the CIN, the payment amount gets credited to your Electronic Cash Ledger.

Remember, that GST can be paid via Over the Counter for deposits not exceeding Rs. 10,000 per challan per tax period.

Further, it must be noted that the limit of Rs. 10,000 per challan per tax period in case of Over the Counter payment is not applicable to payment made by:

government departments or any payments made by persons notified by the commissioner in this behalf
proper officer or any other officer authorized to recover outstanding claims from registered or unregistered person. This would also include recoveries made via attachment or sale of immovable properties
proper officer or any other officer authorized to collect amounts via cash, cheque or demand draft as a part of an investigation or enforcement activity

In addition to this, person supplying OIDAR services from outside India to a non – taxable online recipient shall must also deposit GST. This can be done via international money transfer through Society for Worldwide Interbank Financial Telecommunication payment network. Also, such a payment is to be made from the date notified by the Board.

Finally, any commission payable for making payment of GST is borne by the person making the payment.

4. After the amount gets successfully credited to the concerned government account, a GST payment receipt is generated that contains the CIN. This is Challan Identification Number which is generating by the collecting bank. After receiving the CIN, the payment amount gets credited to your Electronic Cash Ledger.

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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.

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