The Goods and Services Tax (GST) is a comprehensive tax system implemented in India to replace multiple indirect taxes levied by the central and state governments.
However, as it is a relatively new type of tax with ongoing changes, many business owners and individual taxpayers are unaware of how to file GST online.
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In this blog, we will guide you through the step-by-step process of making online GST payment challan. We will also cover important aspects such as when to make the payment and key points to keep in mind while making online GST payments.
So, whether you are a business owner or an individual taxpayer, read on to learn how to make online GST payment.
Before filing your GST returns online, make sure you have verified all your transactions and corrected any errors in your accounting. Also, keep all your invoices and receipts handy for reference while GST filing. Additionally, keep yourself updated with the latest GST rules and regulations. Finally, use GST accounting software for accurate filing.
What is the Goods and Services Tax (GST)?
GST, also known as Goods and Services Tax, is a value-added, indirect tax levied on a majority of products or services that are sold domestically for consumption in India.
It is worth noting that GST is a unified system of taxation that has replaced Central and State indirect taxes that previously existed across the country.
The GST Bill was passed in both the Houses of Parliament in the year 2017, and the law came into force on the 1st of July 2017. Currently, business owners, as well as self-employed individuals in India, are required to register themselves under GST and also pay/file GST on time to keep additional interest charges, fines, and other penalties at bay.
How To Make Online GST Payment?
To pay GST online, you need to follow the steps listed below. Although the process is easy, it is necessary that you choose the right tab or enter the correct details only.
Step 1: To make an online GST payment, you first need to register yourself with GST. The registered users can visit the official GST portal for logging in to their accounts.
Step 2: Once you log in to your account, you need to choose the ‘services’ option and click on the ‘payments’ section from the dropdown menu. On clicking the payments option, you will come across the ‘create challan’ tab.
Step 3: Under the “challan” tab, enter each figure accurately under its corresponding heading (CGST, SGST, CESS, UTGST, etc.), and then decide on the payment mode.
Step 4: After you fill up the required details under CGST, SGST, CESS, UTGST, and IGST headers, you need to click on the ‘create challan’ option. If you want to modify the challan, you can also save it by choosing the ‘save’ option.
Step 5: As soon as you generate challan or create the GST tax invoice, you will be issued a Common Portal Identification Number (CPIN). Next, you need to go ahead with the online GST payment procedure. You can choose among the following three payment options,
- Pay tax online via credit/debit card or using net banking.
- Pay using NEFT/RTGS (e-payment).
- Make an OTC (over-the-counter) payment via GST-accredited banks.
In case you opt for GST challan payment online, you will receive an acknowledgment soon after making the payment as well as be issued a Challan Identification Number (CIN).
When Should You Pay GST Online In India?
You need to pay your GST every month soon after filing your GSTR 3B return. In simple words, you need to pay/file your GST return for the current month by the 20th of the following month.
At the same time, you should keep in mind that if your GST liability exceeds Rs 10,000, it becomes compulsory for you to pay your GST online.
If you are new to GST, we suggest you use these Fully featured billing and invoicing software which makes filing GST returns very simple.
GST Interests and Penalties
If your GST challan payment online gets delayed, or you end up paying less than the total amount due, an 18 percent interest will be levied on your dues. Thus, it is advisable to count on efficient GST accounting software that helps you stay GST-compliant and avoid paying penalties.
Moreover, to avoid GST penalties and boost your GST-compliance rating, there are some GST best practices and tips that you must follow.
GST Tips & Best Practices
Here are some GST tips and best practices to help you manage your taxes more effectively:
GST Tips & Best Practices
- Keep accurate records
- Review your returns carefully
- Keep track of GST changes
- Take advantage of input tax credit
- File your returns on time
- Use GST accounting software
1. Keep Accurate Records
Maintaining accurate records of all your purchases, sales, and expenses is crucial when it comes to filing your GST returns online. This will not only help you save time and effort, but it will also help you avoid any penalties for delay or non-compliance.
2. Review your Returns Carefully
Before you make an online GST payment challan, be sure to review them carefully. Ensure that all the information is accurate. This will help you avoid any mistakes that could lead to fines or penalties.
3. Keep Track of GST Changes
GST regulations and policies are constantly changing. Therefore, it’s important to stay up-to-date with any new updates or changes. This will help you stay compliant and avoid any issues with the tax authorities.
4. Take Advantage of Input Tax Credit
Input tax credit is a credit that you can claim against GST paid on purchases of goods or services used for business purposes. Be sure to take advantage of this credit to reduce your tax liability.
5. File your Returns on Time
Making online GST payments on time is important to avoid any penalties or late fees. We suggest that you set reminders or schedule your GST returns in advance to ensure that you don’t miss any deadlines.
6. Use GST Accounting Software
Most importantly, invest in the best GST accounting software that can help you automate and streamline your tax management processes. This will save you time and effort while ensuring compliance with all GST regulations.
By following these GST tips and best practices, you can certainly better manage your taxes and avoid any fines or penalties.
Online GST payment is not rocket science or a tough task, as many business owners and individuals believe. However, it is true that continuous changes can make the GST filing process a bit confusing. Nevertheless, by following GST tips and best practices and using GST accounting software, you can easily address these issues and file GST online correctly.
Frequently Asked Questions
There are a total of 7 types of challans prescribed for various taxes under the GST regime, including
- GST PMT-07
- GST PMT-06
- GST PMT-05
- GST PMT-04
- GST PMT-03
- GST PMT-02
- GST PMT-01
Yes, you can certainly make a GST challan payment through a physical challan. However, it is recommended to make the payment through online mode as it is faster and more convenient.
Yes, a challan can be edited before making payment. However, once the payment is made, the challan cannot be edited.
No, you do not need to upload any documents during online GST payment. However, you may need to provide some information, such as the GSTIN, the tax amount, etc., depending on the type of payment being made.
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