Goods and Services Tax is a pathbreaking tax regime with the innovative use of technology in managing this tax system. With its online network – GSTN, A taxpayer can not only make GST payment online but also file returns. It also includes options for registering under GST and get the GST latest news at your fingertips through its portal that is compatible with different platforms. It is a comprehensive system build with cutting-edge technology that handles more than 4 million tax returns in a single month.
How to pay taxes online conveniently
Any registered individual or company can make GST payment online from the comfort of office or home through GST portal. There are three different types of taxes that are required to be paid under GST.
- CGST – Central Goods and Services Tax that levies on goods and services by the central government and the collection gets remitted to the central government. This tax applies to intra-state supply.
- SGST – State Goods and Services Tax that levies on goods on services by the state government for the intra-state supply of products and services. The tax is remitted to the state government.
- IGST – Integrated Goods and Services Tax is a charge that levies on inter-state supply by the central government. The collection of taxes are remitted to the central government, which are then distributed to states on a pre-decided agreement.
Who is liable to pay taxes: Any individual or enterprise that is registered under GST and supplies taxable goods and services are required to pay GST. Any E-commerce supplier who is dealing with products and services that come under the category of taxable goods and services. Also, this applies to someone in trade through E-commerce who collects taxes (TCS). Anyone who is registered under GST and come under the reverse charge mechanism needs to make tax payments.
Step by step guide to making GST payment online:
- Login to GST portal with your registered Username and Password.
- Click the Services tab and in the drop-down menu hover your mouse to the payments link.
- A sub-drop-down menu will appear with different options. Click on the first option “create challan
- On the next page, you will see sections for CGST, IGST, Cess, SGST. And there will be columns for Tax, Interest, Penalty, Fees, Other and Total.
- Enter the amounts in the space provided. Make sure you enter the right amount in the right column.
- On the same page below the rows and columns, you will be able to see “Payment Modes” with three options. E-payment, Over the counter and NEFT/RTGS. ( For over the counter payment there is a set limit of Rs. 10,000 per challan). An “over the counter” payment is a payment done physically through any bank.
- Click on the desired payment method and click “Generate Challan”.
- A summary page will open, which will have all the details of your challan. Select the mode of payment – a tick mark will appear, then click “make payment.”
- Make payment GST payment online through NEFT/RTGS or E-payment options.
- There will be an option given to download and printout a copy of challan, and that can be submitted in the bank to make physical payment.
Once the payment is made successfully, you will receive a challan containing complete details of the tax paid. After that, the tax paid challan (CIN) will get credited to your cash ledger account.
Essential Points about challan:
- For someone who wants to prepare tax returns without login in, they will be required to declare their Tax Return Preparer Identification Number (TRPID).
- For someone who is an unregistered dealer with a temporary ID and wants to create a challan in pre-login, they will be required to give their Temporary Identification Number (TMPID).
- If UN Bodies, governments offices, embassies, or other notified individuals want to create a challan without logging into GST portal, then they will be required to provide Unique Identification Number (UIN).
GST Tax returns:
Anyone registered under GST is required to submit tax returns. GST tax returns are documents any tax-paying individual or company needs to file to tax authorities about all the details of their income. The tax authorities use tax returns to calculate all the tax liabilities of an individual or a company.
There are several types of tax returns. GSTR1 is required to be paid monthly, and it is a summary of the outward supply of goods and services along with the Input Tax Credit through which the payment of tax is affected. GSTR 3B is required to be paid monthly, and it is a summary of the outward supply along the Input Tax Credit through which the payments are affected. GSTR4 is a return that needs to be paid quarterly for those taxpayers who are registered under the composition scheme. GSTR5 is a monthly tax return for Non-Resident foreign taxable individuals. GSTR6 needs to be filed monthly, and it is for an Input Service Distributor. GSTR7 is a monthly tax return and required by authorities who deduct tax at source. GSTR8 is a monthly tax return that is required to be filed by e-commerce operators, and it needs to include details of supplies. GSTR9 is an annual return for those who opt for the composition scheme. GSTR10 is a final or the last return in case a GST registration is surrendered or cancelled. GSTR11 is a monthly return that shows the details of inward supplies of an individual who has Unique Identification Number (UNI) and who claims a refund.
GST payment online is a quick and efficient method to pay taxes and file returns from anywhere. You can make payment easily just through the click of a button on a laptop or through a phone. GST has come a long way from the previous tax system where an individual needed to travel to a particular place or office to pay taxes or file returns and compared to that the GST portal has an opened great opportunity to remain GST compliant without much worry. Some changes frequently happen to the rates and some taxes and to stay updated, looking into GST latest news every month will help in being GST compliant.