Tax Payment Procedure Under GST?

Now that the GST will soon be launched, an essential point to note is the process of tax payment. First, it is essential to understand if the individual or entity is qualified for GST tax or not. There are various conditions which the taxpayer can check to understand the criteria for the qualification and the payment of GST tax.

Tax payment is demanding as late payment can attract penalty and even cancellation of the business or ventures by individuals or the entities. Below here is a short introduction on the GST tax payment in India.

Mode of Payment

 Internet Banking/Credit Cards/Debit Cards

 Over the counter payment

 NEFT/RTGS

CGST, IGST & SGST, all the three forms of Goods & Service tax can be paid through both online and offline mode. An individual can use their credit card, debit card or net banking to pay for taxes under the GST in the online mode.

For offline mode, the individuals can pay taxes through cheque across all the authorized banks in India. Also individuals can pay cash across the authorized banks for the GST tax payment. There is another point which needs to be noted here is that for paying taxes under all the forms of GST, you will require one common challan. This Challan will be used for all the payments. Alternatively, the government also allows the NEFT& the RTGS payment facilities for settling the payments of SGST, CGST & IGST. The IT framework GSTN has been given the business of constructing and maintaining the payment collection structure for the GST.

The detailed process of tax payment under the GST is described below:-

Once draft challan is created, the applicant or the taxpayer will have to fill the tax details for the payment. Agreed by the RBI representative, the RBI will act as a recipient for the transferred amount either by RTGS or NEFT.

This eliminates the requirement of linking up with the authorized banks for receiving the payments and after that transferring to the RBI. RBI will only act as the authorized bank. The taxpayer will then be choosing the payment mode from the authorized bank. The generated challan will contain a unique Common Portal Identification Number (CPIN) code.

A generated challan is frozen and cannot be modified. The CPIN is valid for only 7 days. Within this 7 day validity, the tax amount requires to be tendered. Therefore, the CPIN will be live for 30 days with the RBI. It is essential to note that the taxpayer who has used the CPIN code more than twice after the 7 day validity period will be blocked.

Once the challan is successfully generated, it is accessible across the taxpayer’s account dashboard. It can be either printed or downloaded. Hence, the taxpayer will be able to either print the challan offline or download it directly from the portal.

GST Payment Through NEFT or RTGS

Apart from the challan, the GSTN will be bearing the RTGS or NEFT authorization. The NEFT or the RTGS authorise will be generated by the GSTN in the ‘Account Name’ field. There will be an essential disclaimer across the copy of the challan. This disclaimer indicates that the transaction should be between the taxpayers and their authorized banks only and then the payment will be acknowledged as received by the GST portal and by the government. The payments in these modes will be only accepted against the cheques. The GST Portal will not allow any cash payments for the tax payments under the GST, under the RTGS or NEFT mode.

TaxAssist is a professional income tax consultancy in India for both corporate houses and individual tax payers; the latter comprising Salaried Individuals, Seafarers, Professionals and Non Resident Indians.

With the help of Tax Assist and its team of income tax professionals, taxpayers can minimize their Income Tax liability, maximize their net income and create opportunities to save for current and future needs while maintaining proper accounting standards and income tax returns which are compliant with the Law.