Process of GST payment

GSTIN and UIN

All the business entities registering under the GST rules will be provided a unique identification number known as GSTIN or GST Identification Number. Similarly, service tax registration number is rendered to a service provider by Central Board of Excise and Customs (CBEC). GSTIN and UIN are two different types of identification numbers under GST rules. Goods and Services Tax Identification Number (GSTIN) is allotted to a regular taxpayer who is required to collect GST and file the GST returns. UIN is a special class of GST Registration for foreign diplomatic missions and the embassies which are not liable to taxes in the Indian Territory.

How will the GST payments be made?

Deposits can be made in the Electronic Cash Ledger for making payment towards tax, interest, penalty, fee or any other amount under any of the GST laws. The Electronic Cash Ledger will be maintained in FORM GST PMT-05 to pay tax, interest, penalty, fee or any other amount, on the GSTN. Any person, or a person on his behalf, can generate a challan in FORM GST PMT-06on the GSTN and enter the details of the amount to be deposited by him.

GST Payment process

The following is the payment process for GST tax payment:

1. Any payment required to be made by an unregistered person will be made on the basis of a Temporary Identification Number generated through GSTN.
2. Payment by NEFT or RTGS mode from any bank, the mandate form, must be generated along with the challan on the GST and shall be submitted to the bank and is valid for only 15 days.
3. When the amount is realized by the bank, a challan Identification Number (CIN) will be generated by the bank and the same will be indicated in the challan.
4. On receipt of CIN from the bank, the amount will be credited to the Electronic Cash Ledger and the GSTN will provide a receipt of the deposit.
5. Where the bank account is debited but no CIN is generated or generated but not communicated to the GSTN, the problem can be presented in FORM GST PMT-07 through GSTN to the bank or the electronic gateway through which the deposit was initiated.

Modes of GST payments

The challan in FORM GST PMT-06 is valid only for 15 days and the deposit of such challan must be made through any of the following modes:

• Internet banking;
• Credit card or debit card;
• NEFT or RTGS from any bank;
• Over the counter payment for deposit up to Rs. 10,000/- per challan per tax period, by cash or demand draft.

The restriction for deposit up to Rs.10, 000/- shall not apply to deposit to be made by-

1. Government Departments.
2. Officer authorized to recover the outstanding dues from any dealer.
3. Officer authorized for the amounts collected by way of cash, cheque or demand draft during the investigation or enforcement activity.

Identification of each transaction.

A unique Identification Number (UIN) shall be generated at the common Portal for each debit or credit of the Electronic Cash Ledger or Electronic Credit Ledger. The UIN relating to discharge of nay liability shall be indicated in the corresponding entry in the Electronic Tax Liability Register. A UIN shall be generated at the common portal for each credit in the Electronic Tax Liability Register.

Detailed description of GST payment modes.

Given below is a preview of NEFT/RTGS and credit / debit card modes of GST payment a taxpayer may use to make payments:

NEFT / RTGS

1. Access GSTN for the generation of a challan through which the payment is to be made.
2. Fill in the detailed of the taxes that are to be paid and choose the mode of payment as NEFT/ RTGS. The challan which is generated will have a Unique Common Portal Identification Number (CPIN) assigned only when the challan is finally generated. The generated challan will finally have a NEFT/RTGS mandate associated with it. This mandate will contain in itself NEFT/RTGS pooling bank account details i.e. of RBI along with IFSC for receiving money. NEFT/RTGS mandate will have validity period of CPIN printed on it.
3. Upon successful saving of the challan details, the challan will be available on tour dashboard in downloadable/printable form.
4. Besides the generation of challan, GSTN will also generate NEFT/RTGS mandate form the CPIN generated at the portal shall be incorporated in NEFT/RTGS mandate form in ‘account name’ field. The payment in this mode would be permitted only against cheques and no cash payment would be permitted to initiate NEFT/RTGS transactions.

Debit / credit card.

1. Access GSTN for generation of challan through which payment is to be made.
2. Fill in the draft challan. After the challan is generated, it will not be allowed to be modified. The challan would be valid for a period of 15 days.
3. There are 3 modes of payment; you have to choose the e-payment mode. Choose between internet banking and credit/debit card for making payment.
4. GSTN will direct you to the website of your selected bank. Alongside, GSTN will forward an electronic string to the selected bank carrying the details for each challan on real time basis.
5. Make the payment though the bank will display the breakup of the total amount payable. No change in the amount would be allowed on the banks portal.
6. After the completion of the transaction, a unique CIN against the CPIN will be created which is an indicator of a successful transaction.
7. If the transaction is incompleted because of failure of credential verification. There would be a feature in GSTN to re-ping the bank system and receive a response against CPIN.
8. Upon receipt of completion of transaction, GSTN will inform the relevant tax authorities about payment. A copy of such paid challan and a statement confirming receipt of the payment will be provided to you by GSTN.
9. There after the tax paid challan CIN will be credited to your tax ledger account.

For more information, visit Company Vakil website.