gst payment

You can make a GST payment either online or offline. Businesses must assess the tax that needs to be paid in cash after the offset of the input tax credit availed. Thereafter, it must generate a GST challan either before or after logging into the GST portal or while filing the GST return.  

This article provides step-by-step instructions to follow for completing the GST payment for all types of taxpayers under GST.

GST payment for different taxpayers

GST payment process mostly remains the same for all taxpayers under GST. If there is a sufficient cash balance in the electronic cash ledger, then payment is not required. In other words, if there is no sufficient cash balance, then the taxpayer must use a challan for depositing money into the cash ledger, using prescribed modes of payment. Here is an overview of the payment process for various categories or types of taxpayers:

Regular Taxpayer

They must use the PMT-06 challan for making any GST payment towards the electronic cash ledger, around the time of filing GSTR-3B. The details thereof will appear in GSTR-3B. Further, they can create a challan and pay towards it either before login or after login or while filing GSTR-3B returns. The steps are detailed in the further sections of the article.

Quarterly Taxpayer

These taxpayers are those who have opted into the QRMP scheme under GST. They must deposit tax in the first two months of a quarter directly using the PMT-6 and make payment while filing GSTR-3B for the last month (3rd month) of the quarter. The snippet given below summarises the process.

The Quarterly Return filing and Monthly Payment of taxes (QRMP) scheme became applicable from January-March 2021 quarter onwards. Under this scheme, the taxpayers can file GSTR-1 and GSTR-3B after the end of the quarter. Accordingly, most of the quarterly GSTR-1 filers are migrated into the scheme. Their payment process varies slightly from the rest of the taxpayers. 

The tax payments must be made by the 25th of next month for the first and second month of the quarter, i.e., for example, January and February for Jan-Mar 2021 quarter.  

For such taxpayers, while making payment in the form PMT-06, they must select the ‘Monthly payment for quarterly return’ option as the reason and choose either of two methods for payment- Fixed sum or Self-assessment. For the detailed steps, you may refer to our article: “Steps to Make Tax Payments Under the QRMP Scheme”  

Taxpayers filing Nil GST returns

These taxpayers have no sales or purchases or tax payable for the relevant tax period, either for the month or quarter. They need not use the challan or make any payment. For more details, refer to our article on “Nil filing of GSTR-3B”.

Composition taxable persons

These taxpayers have to summarise their sales/turnover details for the quarter in challan CMP-08 and make payment of tax. For detailed steps, refer to our article- “Steps to file CMP-08”

Which mode to choose for making a GST payment?

Businesses must choose one of the modes of GST payment while generating the GST challan in the form PMT-06. The choice made depends upon the availability of time to file the GST return before the due date, convenience, the banker, etc.

The following are the modes of GST payment available on the GST portal:

Online payments

• Net banking
• Debit card/credit card (Not activated)
• Immediate Payment Services (IMPS)* and
• Unified Payment Interface (UPI)*

*CGST Notification number 14/2022 dated 5th July 2022.

Notes on online GST payment

1. Online mode refers to those payments made through internet banking.
2. Taxpayers can pay through these modes with or without logging in to the GST portal.
3. There is a selected list of banks that the GST portal allows taxpayers to pay from. They must choose the bank and make GST payments online using a card or net banking instantly.
4. After making the GST payment, the electronic cash ledger gets updated automatically. If the taxpayer generates challan without logging in, then he/she must ensure to finish the payment immediately.

Offline payments

• Over the counter (Cheque/Demand Draft/Cash), also known as OTC
• National Electronic Fund Transfer/Real-Time Gross Settlement, popularly known as NEFT or RTGS

Notes on offline GST payment

1. Offline options include cheque, DD, cash, NEFT or RTGS, which can be chosen voluntarily.
2. Alternatively, one of these modes is chosen when a taxpayer’s bank is not reflected in the net banking/card payment list.
3. Taxpayers can pay through these modes upon generating the GST challan, before or after logging in to the GST portal.
4. Take a printout of it, fill in depositor and instrument details, and sign and submit it to the bank to complete the payment.
5. In the case of OTC, banks will process the instrument in a day or two. Thereafter, the electronic cash ledger gets updated with the amounts.
6. The maximum amount that any taxpayer can pay through the OTC is Rs 10,000. If the payable amount exceeds this limit, then the taxpayer must go for other modes.
7. In case the taxpayer has chosen RTGS/NEFT while generating challan, steps vary. He must take a printout of the challan, fill and sign the mandate, and submit it along with the challan to the bank. The bank processes this and provides the Unique Transaction Reference (UTR) number usually in a few hours. Thereafter, the taxpayer must log in to the portal to link the UTR number against the particular challan, and the electronic cash ledger gets updated.

How to generate a GST challan on the GST portal?

You have two ways to generate a GST challan, either by logging in to the GSTIN account on the GST portal or before the login. There is not much of a difference between the two.

If the taxpayer chooses to generate challan before logging in, the following are the steps to generate challan:

How to pay GST offline?

How to Generate Challan Without Logging to Portal?

Step 1: On the GST portal’s homepage, navigate to the Services > Payments > Create Challan option.

Step 2: Enter the GSTIN or the ID of a temporary user or tax return preparer or UN body. Enter the captcha code.

Step 3: Enter amounts for CGST, SGST, IGST or other heads, as applicable. Thereafter, choose the relevant payment mode with bank details if applicable.

Step 4: Re-enter the GSTIN/Other ID for the Challan Generation field and click on the ‘PROCEED’ button.

Step 5: Click on the ‘DOWNLOAD’ button to download the challan that is generated.

How to Generate GST Challan After Logging to Portal?

If a taxpayer chooses to generate challan after logging in, he can find the button to create challan on your dashboard itself. The rest of the steps to fill and generate challan remains the same.

For that, he must enter the amounts in respective heads and choose the desired payment mode.

GST payment due date

For every regular taxpayer with over Rs.5 crore turnover and filing returns monthly, the GST payment due date is 20th of every month for the tax period.

What is the time limit to finish GST Payment?

The time limit available for completing the GST payment must be considered from the challan generation date. Payment must be completed immediately in case of pre-login challan creation for net-banking mode. This will be 15 days where an offline mode is chosen. At the time of entering the details for challan generation, the following must be ensured:

For Net Banking

If net banking is chosen as the mode, select the bank name and click on ‘Generate challan’.

The Common Portal Identification Number (CPIN) gets generated.

The taxpayer must finish making payment immediately in case of the pre-login challan creation. On the other hand, in the case of post-login challan creation, a taxpayer can wait up to 15 days to complete the payment, the steps given in the next section.

How to pay GST offline?

For Offline Modes

If offline mode such as OTC or NEFT/RTGS is chosen, enter bank details where cash is deposited or remitted and click on ‘Generate challan’.

The CPIN gets generated with the challan copy and gets saved automatically. There is a time limit of up to 15 days to complete paying via the offline modes, the steps of which are given in the next section.

Important Note:

Suppose any details in the challan are wrong and the taxpayer is yet to make the payment, then he must freshly generate a new challan with the correct particulars. No action needs to be taken on the old challan as it automatically expires after 15 days. To track the payment status anytime later on the GST portal, the CPIN must be used.

Steps to complete GST payment at a later date?

Here is a step-by-step guide that will help you make the GST payment with ease:

(1) To complete the payment later on against a challan earlier generated, in case of payment either through net banking

Step 1: Log in to the GST portal and go to the Services > Payments > Challan history.

Step 2: Click on the hyperlink against the appropriate CPIN listed down.

Further, select the right bank from the list of banks displayed for card payment or net banking and finish the payment.

Receipt gets generated with CIN upon successful payment. The electronic cash ledger gets updated immediately.

(2) To complete the payment later on against a challan earlier generated, in case of OTC mode of payment

Step 1: Fill up the remaining particulars asked on challan manually with the authorised person’s signature.

Step 2: Submit the filled-in particulars, the challan copy, instruments such as cheque or DD or cash to the appropriate bank, earlier chosen while generating challan.

In a day or two, the electronic cash ledger gets updated with the payment.

(3) To complete the payment later on against a challan earlier generated, in case of RTGS/NEFT

Step 1: Fill up the remaining particulars asked on challan, including RTGS/NEFT.

Also, fill up the mandate with the depositor details, cheque details and manually sign it.

Step 2: Submit the filled-in particulars, the challan copy, cheque and mandate to the remitting bank earlier chosen while generating challan. Instead of a cheque, one can use the account debit facility too.

Within two hours, the bank will process this. The taxpayer will receive the Unique Transaction Number (UTR) and Challan Identification Number (CIN) on the registered e-mail ID or mobile number.

Step 3: Log in to the GST portal, go to challan history.

Step 4: Click on the hyperlink against the appropriate CPIN. Enter the UTR number and click on ‘Link UTR’. The electronic cash ledger gets updated.

Important Notes:

1. Follow up with the banker if payment is initiated with the ban, but the payment status is “Awaiting Bank Confirmation” or “Awaiting Bank Clearance”.
2. Suppose the payment is completed and the taxpayer has received confirmation from the bank, but the electronic cash ledger has not got updated. In that case, he can raise a grievance in form PMT-07 on the GST portal.

GST payment status

You can track the GST payment status online, either before logging in or after logging into the GST portal. You need the GSTIN and CPIN to proceed with the tracking. For more details and steps, visit our page -GST Payment status.

Interest on late payment of GST

If one does not pay tax and file return by the due date, then late fees and interest will apply for every day of default that occurs until the return is filed. The interest will apply at the rate of 18% p.a. on the tax liability, if any. For more details about calculation, read our article on Section 50 of the CGST Act.

GST payment after 8PM

GST payment facility is available 24x7 through internet such as the net banking, etc. However, if you complete your transaction in between the time 8:00 AM to 8:00 PM, it is accounted for on same day. But if the transaction is done after 8.00 PM of a day, it will accounted in the next day. Hence, make sure to finish the GST payment before 8:00 PM of 20th of any month for the GST system to consider the tax dues for tax period as paid by the due date.

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