Some noteworthy methods for payment of GST

Once GST take effect, every regular tax payer that is registered has to furnish their respective GST returns on a monthly basis and pay their indirect tax dues by the 20th of every month. If the tax payer is unable to pay their dues, interest will be applicable on the due amount right from the day on which it was due to be paid to the designated authorities.

If an entrepreneur puts forward a monthly return without paying his/her outstanding tax due, the return put forward would be null and void and will be considered as an Invalid Return. They would also require GST training in order to accomplish the same. Without paying the outstanding dues, the return cannot be filed in the subsequent month. Thus, it is imperative to have the necessary knowledge about how to pay tax liabilities under the GST regime so that we can avoid paying interest in case of non-payment of tax.

It is because of the sheer purpose of paying tax through a effective GST software that every registered dealer needs to have 3 ledgers in their portal for GST:

· Electronic cash ledger

In this ledger, every deposit that is made by an individual towards payment of tax, penalty, late fee, interest or any other amount will be credited in this account.

· Electronic tax liability register

The amount that a business enterprise or an entrepreneur owes towards payment of interest, tax, late fee etc. will be debited in this account.

· Electronic credit ledger

Input tax credit will be credited into this ledger account, as this will be assessed and claimed by a person in Form GSTR-2. This can certainly be used by an individual for payment of taxes, and no other amount such as interest, late fee etc.

In order to showcase the liabilities as the tax liability register, an individual can certainly use the remaining balance in the cash ledger and credit ledger. When the remaining liability is paid,

1. The electronic credit ledger will be reduced by the amount by the credit that is used for payment.

2. The electronic cash ledger is deducted by the amount of deposit used for making payments.

3. The register for electronic tax liability will be credited by the amount of money that is paid.

Let us enhance our understanding with some of the points mentioned below:

I. Generation of challan for making necessary payment

Challan for payment can be generated with a GST software using the Form GST PMT-06. The details can be submitted towards the payment of tax, penalty, interest, fees and any other amount that needs to be entered in the challan. The generated bill be void and applicable for a period of 15 days.

II. Disbursal of payment using the following modes

Payment of GST can be made through the following modes:

1. Credit or Debit Card through the channel of authorised banks

2. Use of internet based banking by authorised banks

3. NEFT or RTGS transaction through any of the recognised banks

4. OTC payment made through the channel of authorised banks up to an amount of Rs.10,000 per challan per tax period, by the way of cash, cheque or DD.

It must be noted that if the necessary amount is paid using NEFT and RTGS channel, a mandate form will be generated along with the challan on the specified portal for GST. Excellent GST training will form an important part of the entire process. The form will remain valid for a period of 15 days only.

III. Generating Challan Identification Number(CIN) and credit to Electronic cash ledger

Once the process is completed and the amount paid by a small entrepreneur is credited in the concerned government account, a Challan Identification Number (CIN) will be furnished and the same will be mentioned in the designated GST portal. Once the CIN is received, the amount that needs to be paid will be credited into the account of person’s Electronic cash ledger.