Three years ago, the goods and service tax was introduced by the Indian government to improve the overall tax structure of the country that will boost the nation’s economic growth in the long run. One of the features of GST is that it replaces many indirect taxes like VAT, service tax, excise tax with a single tax valid across the country.
The GST council make several amendments in its meetings to improve the law for taxpayers. This includes feedbacks from several sectors and industries of our country. Though this revolutionary tax law eliminated the cascading effect of the tax, it is still too complicated for a regular taxpayer to fully understand its complex elements.
Many people hire tax professionals to take care of their taxation process, but not everybody can afford to hire tax specialists. If you are struggling to get along with the complex norms of GST, this guide will help you to pay gst online with ease.
Who Should Pay GST?
It is the most common question asked by taxpayers in the country. Anyone who is running a business of goods and services has a turnover of more than INR 20 lakh must register for a gst certificate and pay GST online.
Apart from the above criteria, you are liable to pay GST in the following cases:
- If you have registered under GST and supplying taxable items.
- If you are required to make a tax payment under RCM
- If you are an e-commerce operator.
- If you are required to deduct TDS
Different Types of GST Payments
As per the GST law, the tax is collected in four different forms based on the nature of the transaction.
- IGST (Integrated Goods and service tax): It is collected by the centre when the supply of goods or services is between states.
- SGST (State Goods and service tax): State GST is collected by the state government when the supply of goods and services is within states.
- CGST (Central Goods and service tax): It is collected by the central government when the supply of goods and services is within the states.
- UGST (Union territory Goods and service tax): It is levied by the UT on the transactions happening in any union territory of India.
Steps To Pay Your GST Online With Ease
Step 1: Visit the GST website, and enter your username with password, fill the given captcha to log in to your account on the GST portal.
Step 2: After logging in, visit the service tab, select payments, and then click on create challan.
Step 3: You need to enter the respective amounts and select the method of payments from e-payments, over the counter, or NEFT/RTGS. There is a limit of Rs 10,000 per challan for over the counter payment option. Click on generate challan once you have filled all the details on the page.
Step 4: You will land on the summary page that will consist of all the details of the challan. Select payment mode and make payment.
Step 5: Print out the challan and pay in the respective bank or you can pay directly on the portal using the net-banking option.
Step 6: Once you made the payment, you will receive a challan containing all the details of the paid tax.
How to File GST Return?
A GST return is a document that you need to file with the tax administrative authorities, which contain all your income details. Tax authorities use GST returns to determine your tax liability. As per the taxation law, you must file your GST return, including the following details.
- All purchases
- All sales
- The GST on sales
- The GST on purchases
What Is The Right Time To Make GST Payments?
You need to pay your GST every month just after filing your GSTR 3B return. This means you need to pay and file your return for the past month by 20th of the next month. You must pay your GST on time to avoid fines and interest charges.
If you miss your payment or pay less amount, you will be charged an 18% interest on your dues. You will pay late fine of Rs. 100 under CGST and additional Rs 100 under SGST that makes a total of Rs. 200 per day.
It is very important to understand taxation as it can save you from heavy penalties. GST is still new, and there has been a mixed response in the country because of its complexity.
Taxpayers are still trying to get familiar with the complicated norms of GST. The above guide should help you make your GST payments online with ease.