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Payment of tax, interest, penalty and other amounts under GST in 10 points

1. In the GST regime, for any intra-state supply, taxes to be paid are the Central GST (CGST), going into the account of the Central Government) and the State/UT GST (SGST, going into the account of the concerned State Government). For any inter-state supply, tax to be paid is Integrated GST (IGST) which will have components of both CGST and SGST. Once a taxpayer is registered on Common Portal (GSTN), 2 e-ledgers (Cash & Input Tax Credit) and an electronic tax liability register will be automatically opened and displayed on his dashboard at all times.

2. GST Tax, interest, penalty, fee or any other amount can be paid by a person by internet banking or by using credit or debit cards or National Electronic Fund Transfer or Real Time Gross Settlement or by over the counter shall be credited to the electronic cash ledger. Over the Counter payment (OTC) through authorized banks for deposits up to ten thousand rupees per challan per tax period, by cash, cheque or demand draft. Electronic cash ledger shall be maintained in FORM GST PMT-05. The cash ledger will reflect all deposits made in cash, and TDS/TCS made on account of the taxpayer. The information will be reflected on real time basis. This ledger can be used for making any payment on account of GST. The taxpayer would be required to pre-register his credit card, from which the tax payment is intended, with the Common Portal maintained on GSTN.

3. Input tax credit as self-assessed in the return of a registered person shall be credited to his electronic credit ledger. The electronic credit ledger shall be maintained in FORM GST PMT-02. A registered person shall, upon noticing any discrepancy in his electronic credit ledger, communicate the same to the officer exercising jurisdiction in the matter, through the Common Portal in FORM GST PMT-04.

4. The electronic tax liability register shall be maintained in FORM GST PMT-01 for each person liable to pay tax, interest, penalty, late fee or any other amount on the Common Portal and all amounts payable by him shall be debited to the said register.

5. Payment of every liability by a registered person as per his return shall be made by debiting the electronic credit ledger maintained or the electronic cash ledger maintained and the electronic tax liability register shall be credited accordingly. Interest, Penalty and Fees cannot be paid by debit in the credit ledger. Section 49(8) prescribes an order of payment where the taxpayer has tax liability beyond the current return period. In such a situation, the order of payment to be followed is: First self-assessed tax and other dues for the previous period; thereafter self-assessed tax and other dues for the current period; and thereafter any other amounts payable including any confirmed demands. This sequence has to be mandatorily followed.

6. Generate a challan in FORM GST PMT- 06. PMT-06 generated at the Common Portal shall be valid for a period of fifteen days. A taxpayer can partially fill in the challan form and temporarily "save" the challan for completion at a later stage. A saved challan can be "edited" before finalization. After the tax payer has finalized the challan, he will generate the challan, for use of payment of taxes. The remitter will have option of printing the challan for his record. Once the challan is finalized and CPIN generated, no further changes can be made to it by the taxpayer. CPIN stands for Common Portal Identification Number (CPIN) given at the time of generation of challan. It is a 14-digit unique number to identify the challan. CPIN remains valid for a period of 15 days.

7. On successful credit of the amount to the concerned government account maintained in the authorised bank, a Challan Identification Number (CIN) will be generated by the collecting Bank and the same shall be indicated in the challan. CIN stands for Challan Identification Number. It is a 17-digit number that is 14-digit CPIN plus 3-digit Bank Code. CIN is generated by the authorized banks/ Reserve Bank of India (RBI) when payment is actually received by such authorized banks or RBI and credited in the relevant government account.

8. Unique identification number shall be generated at the Common Portal for each debit or credit to the electronic cash or credit ledger, as the case may be. Unique identification number relating to discharge of any liability shall be indicated in the corresponding entry in the electronic tax liability register.

9. Payment of taxes by the normal tax payer is to be done on monthly basis by the 20th of the succeeding month. Cash payments will be first deposited in the Cash Ledger and the taxpayer shall debit the ledger while making payment in the monthly returns. Composition tax payers will need to pay tax on quarterly basis.

10. Where a registered person has claimed refund of any unutilized amount from the electronic credit ledger the amount to the extent of the claim shall be debited in the said ledger. If the refund so filed is rejected, either fully or partly, the amount debited to the extent of rejection, shall be re-credited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-03. For the purpose of this rule, a refund shall be deemed to be rejected, if the appeal is finally rejected or if the claimant gives an undertaking to the proper officer that he shall not file an appeal.


Published by

CA Varun Chadha
( B.Com, F.C.A)
Category GST   Report

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