Goods and Service Tax, or GST, has provided a significant boost to the performance and competitiveness of India’s manufacturing sector. As of March 2019, 1,276,963 instances of service tax payment have been isolated, out of which more than 80% of the tax has been collected nationwide.
With Goods and Service Tax in place, the compliance burden of manufacturing and distributing sectors have greatly reduced, allowing these sectors to grow at a steady but assured pace.
According to the Goods and Service Tax Act, businesses that are still under the previous indirect tax bracket are required to register their organisations under this tax regime.
Any form of business, be it self-employed or an enterprise associated with the purchase and supply of goods and services will have to obtain GSTIN.
Based on the timeline of your Goods and Service Tax filing will also have to make Goods and Service Tax payment.
Every taxpayer should have a clear understanding of how to navigate through the official portal for necessary tasks like logging in to GST portal or to make GST payment online. Let’s take a look at everything one needs to know about Goods and Service Tax payment due and methods to pay it.
How to calculate the GST amount
You can compute your total Goods and Service Tax liability amount if you deduce the Input Tax Credit and subtract it from the outward tax Liability. If you add interest or late charges to this amount and subtract the TCS or TDS charges – you can determine the exact sum of what is GST due payment amount.
Pay Goods and Service Tax online/offline
Follow the steps to pay Goods and Service Tax online or offline:
Step 1: As a standard taxpayer, GST registration is mandatory for logging in to the official website of Goods and Service Tax.
Step 2: After successful login, proceed to the ‘Payment’ section listed below the ‘Services’ tile. Navigate to the bottom of the page and click on ‘Create Challan’ option.
Step 3: Enter the payment amount in the challan properly. Next, select your preferred payment method.
Step 4: Once the particulars are filed under headers such as CESS, CGST, and IGST, click on the ‘Save’ option to retain the challan for your future use. This way, one can make repeated changes to the challan, via the registered account. This is one of the numerous advantages of GST registration procedure. Hit on ‘Crate Challan’ only if you are sure of the details entered are accurate.
Step 5: After your challan is generated, you need to proceed with Goods and Service Tax payment. Here you will be prompted to choose from three options –
- Make over-counter payment at your nearest branch of financial institution.
- Make online payment via net banking or card payment.
- Pay through NEFT or RTGS.
Step 6: Based on your payment method, carry out an offline/online GST payment. If you make an online payment, you will receive an acknowledgement instantly with a ‘Download Challan’ option. If you make payments offline, you will be handed over a printed receipt.
For the first time entrees, you need to register for Goods and Services Tax online before making the payments.
When to make Goods and Service Tax payment?
You need to make Goods and Service Tax payment every month, provided you know how to file GST returns and have already filed your GSTR 3B return. You are required to make payments and file your returns for last month by the 20th of next month.
To avoid penal charges and interest add-ons, make timely payments. It will ensure you do not accumulate any penalty from the Income Tax department for evading taxes.
Timely payment of GST will also improve your eligibility while availing a credit. IT returns are one of the essential documentation needed while applying for a business loan. These types of credits can offer substantial financial backing for any organisation’s growth.
Considering the effective GST rates in India, it is an opportune time to invest in your business or expand an existing one. You can avail credit from lenders like Bajaj Finserv. You can also benefit from their pre-approved offers if you are an existing customer.
These pre-approved offers are applicable on business loans, personal loans, home loans and numerous other financial products. You can check your pre-approved offer by sharing a few necessary details like name and contact number.
The GST implementation has benefitted the organised sector by a significant extent. It is time to move towards a more transparent and organised taxation regime. If you have not registered under Goods and Service Tax yet, register it as soon as possible and make the payment on a timely basis.
