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GST Payment - Online or Manual?

CA Raman Singla 
on 21 December 2015

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One more Report of Joint Committee dated April 2015 was issued to give clarity on the issues relating Goods and Service Tax Payment.

It is said that more the system and procedures are made electronic more is the efficiency of tax administration and greater is the satisfaction of taxpayer. In this context, payment system of GST should also be based on Information Technology which can handle both the receipt and payment processes.

Under GST Law some taxes and duties may still remain outside the purview of GST and will will continue to be collected in the manner prescribed under existing accounting procedures/rules/manuals, etc. This means that two types of challans (one for GST and other for non-GST) will be used and accounted for.

OBJECTIVE OF THE REPORT:

i. Need for a uniform system of banking arrangements for collection, remittance and reporting of GST to both Central and State Governments;

ii. Highlight key issues in the Existing system of payment;

iii. accounting and bank reconciliation of taxes derived from basic data of payments made by taxpayers to banks, with the required classification of heads of accounts indicated on the Challan;

iv. Designing the format of a new Challan for use by the taxpayers paying GST;

v. Developing a detailed accounting procedure common to both Central and State Governments.

FEATURES OF THE PROPOSED PAYMENT PROESS:

  • No manually prepared challan i.e. E-challan for all modes of payment.
  • Provision of anytime, anywhere mode of payment of tax.
  • Paperless transaction.
  • Speedy accounting and reporting.
  • E-reconciliation of all receipts.
  • Simplified procedure for banks.
  • Convenience of making payment online.
  • Faster remittance of tax revenue to the Government Account.

MODES OF PAYMENT:

The modes of payment of GST prescribed in the report are as follows:

i. Payment by taxpayers through Internet Banking through authorized banks and through credit card/debit card;

ii. Over the Counter payment (OTC) through authorized banks;

iii. Payment through NEFT/RTGS from any bank (including other than authorized banks).

The mode of payment prescribed in point (2) above will be available for payments up to Rs. 10,000/- per challan only.

STAKEHOLDERS PLAYING KEY ROLE IN EACH MODE OF PAYMENT:

 1. Internet Banking/ Credit Card/ Debit Card

  • GSTN (Goods and Service Tax Network);
  • e- FPBs (Electronic Focal Point Branches) of authorized banks;
  • e-Kuber of RBI;
  • Central Accounts Section (CAS) of RBI, Nagpur;
  • e-PAOs (Electronic Pay and account Offices) / e-Treasuries of State Governments;
  • CCA, CBEC (Principal Chief Controller of Accounts) / Accountant General of the States;
  • Tax authorities of Centre and States.

 2. Over The Counter Payment (OTC)

  • GSTN;
  • Branches of Authorized Banks;
  • e-FPBs of Authorized banks;
  • e-Kuber of RBI;
  • e- PAOs of Centre / e-Treasuries of State Governments;
  • CCA, CBEC / Accountant General of the States;
  • Tax authorities of Centre and States.

 3. NEFT/RTGS

  • Branch of remitter bank;
  • RBI performing functions akin to authorized banks.

Hence, it is desirable that under the GST regime, all taxpayers should gradually move to internet payment over an indicative time frame.


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