India GST: How to Make GST Payments and Get Refunds

Run Your Business Jul 29, 2020

The Goods and Services Tax replaced the numerous different taxes levied by State and Central on various goods or services. GST was enforced in 2017, and the Act was passed in the year 2019. This taxation system looks to streamline the numerous taxes levied on products, making it simple for the taxpayers, their collectors, etc. Additionally, it also makes tax filing easy since taxpayers have to file for just one tax.


Here Is What We Will Cover In This Article

India GST Payments

   What Is GST Payment?
   Types of GST Payments
   Calculation of GST Payments
   What Are Electronic Ledgers for GST Payments?
   When Can You Make a GST payment?
   GST Payment Forms
   A Step-by-step Guide for GST Payment 
   List of Authorized Banks
   How to Track the GST Online Payment Status?
   Penalties on Delayed GST Payment
   GST Offline Payments

GST Refund Process

    What Is the GST Refund Process?
    When Can the GST Refund Be Claimed?
    What Is the GST Refund Filing Time Limit?
    How to Calculate GST Refund?

How Deskera Books Make GST Easy for You?

    GSTR Reports Available Under Deskera Books
    GSTR-1 Report Under Deskera Books
    GSTR-3B Report Under Deskera Books

Conclusion



India GST Payments

The GST has to be filed by any self-employed professional or business owner associated with the supply of goods, services, and purchases. If you belong to this category, based on the timeline for filing returns, you will have to make GST payment.

India GST Payment Online
India GST Payment

What Is GST Payment?

To compute your GST payment amount, deduce your Input Tax Credit and subtract it from your Outward Tax Liability. To this amount, add the interest or late fee charges, if any, and deduct the TDS/TCS charges. This way, you will be able to arrive at the exact figure for your GST payment. After calculating the GST amount, proceed to pay it.

Workflow of GST Payment
GST Payment workflow

Types of GST Payments

The types of GST Payments are – CGST, SGST, and IGST under the GST tax regime. The below mentioned are some of the principal criteria for making the different types of GST payments:

GST Payment Types
Types Of GST Payments


In most cases, the Supplier of goods/services pays GST to the government and recovers charge at the receiver's applicable rate. In fewer cases, it is paid directly by the buyer to the government (instead of the seller). The reverse change mechanism is when the suppliers' GST liability is shifted to the receiver of goods/services.

Calculation of GST Payments

The GST payments depend on a few critical factors made by a supplier/receiver,

  • GST Gross Liability – For the registered business/individual, this is the gross GST liability.
  • TDS (Tax Deducted at Source) – The dealer deducts tax before making payment to the Supplier using the TDS mechanism. TDS is deducted from Gross GST liability if paid.
  • TCS (Tax Collected at Source) – E-commerce aggregators commonly use the TDS mechanism on the sales made through their website. TCS is deducted from the Gross GST liability if paid.
  • ITC (Input Tax Credit) – This is a unique mechanism introduced under India GST, which can be availed by registered businesses/individuals to decrease their overall tax burden. By implementing ITC, the GST burden on a supplier's output is reduced to the extent GST has been paid on inputs purchased by the registered business/individual.

    Thus, Net GST Payable = Gross GST – (TDS/TCS+ITC)

What Are Electronic Ledgers for GST Payments?

In the GST portal, the payments and refunds are managed with three types of electronic ledgers. Any GST registered businesses/individuals can access by login into their account on the Official portal. Below mentioned are some details of these additional electronic ledgers:

Electronic Ledger Types
Types of Electronic Ledgers


When Can You Make a GST Payment?

After you file your GSTR 3B return, you will have to pay your returns every month. The previous month by 20th of the next month, you will have to pay and file your return.

Make the full GST payment on a timely basis to avoid fines and interest charges. An 18% interest on your dues will be charged if you delay the payments or pay lower than your dues. Considering this, set a reminder for yourself, so that you never have to miss paying your return on time.

GST Payment Forms

The below GST payment forms are essential for dealers liable to pay online returns in India.

Forms of GST Payments
GST Payment Forms

GST Payment Rules

Monthly returns are considered valid only if all due taxes have been cleared and submitted online under the existing India GST Act rules. Therefore, you cannot submit the returns for May without first making GST payment for April.

In the late payment of Goods and Service Tax dues, on the due amount computed from the due date, an interest rate of 18% onwards is charged on a per annum basis. To avoid the late payment penalties, it is essential to know about the GST online payment system and steps to pay it online.    


A Step-by-step Guide for GST Payment

Below mentioned is a process through which a taxpayer can make GST payment online:

Step-1 Log in to the GST Portal using valid credentials and captcha code.

GST Portal Login
‌‌Log in to GST portal.‌‌


Step 2:- Click on create challan in the dashboard after login.

Then under Services > Payments, click on Create Challan button,

Creation of Challan
Challan creation‌‌


Step 3-  After entering the amount details, select the payment mode option required to make the payment. The amount needs to be entered under the heads of CGST, IGST, Cess, and SGST. Additionally, the breakup of payment made also has to be mentioned towards interest, penalty, fee, and others.

Below given are three options to make GST Payments,

  • Option 1: E-payments, Internet Banking of authorized banks, Debit/Credit Cards.
  • Option 2:  Over the Counter payment (OTC) with authorized banks
  • Option 3:  From any bank's payment via NEFT/ RTGS.

Note:- For per challan payment, there is a particular limit of Rs. 10,000 through OTC (over the counter) with authorized banks.

Enter payment details and select the payment mode
‌‌Enter payment details and select the payment mode option to generate challan



Step 4- On your screen, a summary page will appear, containing all the information of challan. You are required to opt for the payment mode by selecting the bank through which payment will be made.

Later, click on the make payment option at the end of the page

Payment Making
‌‌Make Payment



Step 5- Select a suitable payment mode option to make the GST Payment online. You will get a challan which contains the detailed information of taxes you had paid, once you make the payment of taxes under GST.

After this, the tax paid challan will credit to the cash ledger account of the taxpayer.

Summary of GST Payment

Step 1: Login to the GST Portal.
Step 2: Create challan in the dashboard after login
Step 3: Enter the payment details and select the payment mode option to generate challan.
Step 4: Summary page will appear, containing all the information of challan.
Step 5: Select a suitable payment mode option to make the GST Payment online.


List of Authorized Banks

Below Is the List of Authorized Banks Accepting Payments via E-payments and Over The Counter(OTC)

Authorized Banks to Make Payment
List of Authorized Banks to Make Payment




How to Track the GST Online Payment Status?

Step 1 - Under the  GST Portal, you don't have to log in to track the GST payment.

On the main GST Dashboard, under the Services tab>>Payments>> select Track Payment Status option.

GST Portal main dashboard
‌‌Select Track payment option


Step 2- Enter your GSTIN and the CPIN. Then, click on Track Status.

Payment status - Paid/Not Paid
‌‌The payment status is shown either as Paid or Not Paid.

Step 3.1.1- If  Status- ‘PAID’

Status- If Paid
Status - Paid



Step 3.1.2- You can download the receipt if it is showing the status as paid. Click 'View Receipt' and then 'Download.'

Paid GST view and download receipt
‌‌View and download the receipt‌‌


Step 3.2.1- If Status- 'NOT PAID'

By clicking on the "Download," you can save an offline copy.

‌‌Status- Not Paid


Step 3.2.2- Click on the 'View Challan' if you want to view the challan.

Below challan will open, and you can save an offline copy by clicking "Download."

Download the challan
View/Download challan


Summary of How to Track GST Payment

Step 1- On the GST Portal Dashboard, under the Services tab>>Payments>> select Track Payment Status option.
Step 2- Enter your GSTIN and the CPIN and your payment status will be shown as paid/not paid.
Step 3.1.1- If Status- ‘PAID’Step.
3.1.2- Download the receipt if it is showing the status as paid. Click 'View Receipt' and then 'Download.
Step 3.2.1- If Status- 'NOT PAID'.
Step 3.2.2- View the challan and you can save an offline copy by clicking Download


Penalties on Delayed GST Payment

Under the present Indian GST Act regime, the GST payment if due for every month on the 20th of next month. For example, the GST payable for December 2019 must be mandatorily paid by the 20th of January 2020. For late or short payment of GST below mentioned are the penalties applicable,

  • Late fees are applicable (Rs. 100 for late CGST + Rs. 100 for late SGST payment) at Rs.200 per day in case of the late payment. However, for late IGST payment, there is no late payment fee applicable. In this case, the late fee applicable is capped at Rs. 5000.
  • Apart from the late fee, 18% per annum interest charges are also applicable to the unpaid tax.
  • For the Short payment, there is a penalty amount among Rs. 10,000 and 10% of GST short paid. Apart from this, the short paid amount also needs to be repaid along with applicable interest at 18% per annum.

GST Offline Payments

GST offline payments are made through the bank counter, and a challan is to be generated. The challan includes a CPIN(standard portal identification number) or CPIN code. Taxpayers will be required to pay via cash/cheque/DD and need to make two copies of the printout and. The payment will be reflected in 1-2 days in the taxpayer’s electronic cash ledger.



What is India GST Refund Process?


After the GST payment is made, you will know whether you will receive a refund or not. Using the GST refund Form RFD-01, if you are eligible for it, you will have to file for the refund. However, this may sound very simple, but the process of a GST refund is technical. Also, there will be a rejection of your refund request for a delay or incorrect filing. Thus, you need to file the form accurately and on time by following the terms and conditions of the GST refund.

India GST Refund Procedure
India GST Refund Process



What Is the GST Refund Process?

The income tax authorities have simplified the India GST process and have converted it into an online GST process. Using your registered GST account anytime within two years from the relevant date, you can claim a refund online. However, the date differs on the condition of your claim. To claim your refunds on time, below mentioned are the refund dates,

  • For excess payment, if you are claiming a refund, your date of debt becomes the relevant date.
  • For deemed export of goods or services or shipping, the date of loading/despatch/passing the frontier becomes relevant if you are requesting for a refund.
  • If ITC accumulated as output is tax-exempt or nil, the last period of the financial year to which the credit belongs becomes relevant.
  • If you pay excess basis the finalization of provisional assessment, the date on which tax is adjusted becomes the appropriate date.


When Can the GST Refund Be Claimed?

The GST refund can be claimed as per below listed some of the instances,

  • Due to omission or mistake, excess tax payable.
  • Under the claim of refund or rebate dealer and deemed export goods and services.
  • A refund can be done for the purchases made by UN bodies or embassies.
  • Nil-rated or ITC accumulation due to output being tax-exempt.
  • Finalization of provisional assessment
  • International tourists get a tax refund


What Is the GST Refund Filing Time Limit?

Refund time limit for GST
India GST Refund time limit‌‌


What Is the GST Refund Procedure?

A set application is to be followed for the taxpayers seeking the GST refund. Here are the consolidated steps to file the RFD-01 Form to apply for a refund.

Step 1: Log in to the GST Portal with your GSTIN number.

Login to GST portal
GST Login Page

Step 2: Then Click on Services  tab >>>Refunds>>> Application for Refund.

Refund application
Application For Refund


Step 3: Then, Select the Refund Type and Click on CREATE

Refund type selection
Select refund type


Step 4: A screen reflecting all the details of the electronic ledger balance amount eligible for refund will be revealed as soon as you click CREATE.

Electronic ledger balance amount details eligible for refund
details of the electronic ledger balance amount 

Step 5: Then, select a bank account number for the credit of the refund amount.

Bank account number selection
Select bank account number


Step 6: Click on the declaration given in the checkbox and select the Authorized Signatory. Depending on the type of organization, it will either be “Submit with DSC(Digital Signature for GST return) ” or “Submit with EVC(Electronic Verification Code ).”

Select authorized signatory


It will generate the  GST refund process PDF (ARN Receipt). The submitted GST refund claim will be inspected by an officer to initiate the GST refund process and get the amount credited in the taxpayer's selected bank account.

In addition to this,

  • The acknowledgment and details will be auto-generated in Form RFD-02 after the taxpayer applies. The same will be forwarded to the applicant via SMS, a registered email for future references.
  • The applicant needs to file Form RFD-03 in case of any faults, shortages, or shortcomings in the GST refund, which will then be sent to them to correct their application.
  • Additionally, there are a few documents to be added to the e-refund Form.
  • If the refund amount is below ₹ five lakhs, the taxpayer has to make a declaration stating that the refund amount has not been transferred to another person.
  • If the GST refund amount is more than ₹ five lakhs, the taxpayer also has to attach a proof of tax payment.
  • If refund claiming entity is a Foreign Embassy/Consulate, United Nations body, refund application will be given within 90 days from the end of the quarter in which the goods/ services are procured. This application will be in Form RFD-10.

Summary of GST Refund Process

Step 1: Log in to the GST Portal with your GSTIN number.
Step 2: Click on Services tab >>>Refunds and select the Application for Refund.
Step 3: Select the Refund Type and Click on CREATE.
Step 4: Details of the electronic ledger balance amount eligible for refund will be reflected on the screen.
Step 5: Select a bank account number for the credit of the refund amount.
Step 6: Click on the declaration given in the checkbox and select the Authorized Signatory to generate the GST refund process PDF (ARN Receipt).


How Deskera Books Make GST Easy for You?

‌‌Select 'Yes' if your business is registered for GST.

Let say you are not required to register GST when creating an account with Deskera, tick on the checkbox 'No' when prompted with the question 'Is your business registered for GST?'.

If you are a GST-registered business, you are required to fill in the GSTIN field. Goods and Services Tax Identification Number (GSTIN), is a fifteen digits number that is given in a certificate of registration to an applicant. This number is provided once the application for the grant of GST registration is approved. It is a unique identifier assigned to a business or person registered under the GST Act.


GSTR Reports Available Under Deskera Books

GSTR Reports Available Under Deskera Books

GSTR-1 Report Under Deskera Books

GSTR-1 is a report about the monthly return of outward supplies that shows all the sales transactions of a business.

Using Deskera Books, users can now retrieve the GSTR-1 Report summary, which is mapped according to the Sell tab's transactions.

GSTR- 1 Report under Deskera Books
GSTR-1 Report Under Deskera Books

GSTR- 3B Report Under Deskera Books

GSTR-2 involves the Report of details of purchases. GSTR-3B report consists of a monthly summary of sales and purchases, which is auto-populated by pulling the source of information from GSTR-1 and GSTR-2.

GSTR-3B Report on Deskera Books
GSTR-3B Report Under Deskera Books


Conclusion

So with Deskera Books,  GST taxation has become  simple, scalable and efficient. The financial management system also allows users to conduct business on a pan-India basis with a single Books system.

Sign up with Deskera today to make GST calculation and filing easier.



What is India GST Return?
A document that includes all details related to GST payments, receipts, and invoices for a specific period is known as a GST Return. All transactions can be declared by a taxpayer in which the tax paid is based on the business revenue where the authorities will calculate the total amount of tax.
Step-by-Step Guide for India GSTR Filing
If the taxpayers are not involved in any business activity during the tax period they are required to file nil returns.So, it is essential to understand the GSTR filing process
What is GSTIN?
All business entities will need to Register under GST and obtain a unique 15-digit Goods and Service Tax Identification Number (GSTIN). It will replace the previously existing Tax Identification Number (TIN), allotted to businesses for registering under VAT.
What is GSTN?
The GSTN is a non-profit, non-government organization. It will manage the GST portal’s entire IT system, which is the mother database for everything GST. The Government of India will use this portal to track every financial transaction.
GST Calculator – Online Goods and Services Tax Calculator
GST Calculator is a device that helps in calculating the GST amount on different goods or services accurately. The tool’s sole purpose is to show the total value of goods or services, including the amount of GST.
How to Register for GST on the GST India Portal. A Step by Step Guide
The MoF simplified the GST registration procedure online. Through the GST portal, the applicant can process the GST registration procedure. The portal generates GST ARN immediately after the submission of the application. The applicant can check the status
How to Register for India GST?
Every company/individual who supplies goods and services has to register under GST under the current GST regime. So, if your annual business turnover exceeding Rs.20 lakh (in all Indian states, other than north-eastern countries), you need to register with GSTN


Janhavi Wagh

Janhavi is a part of the Product Team @ Deskera. She is passionate about improving customer experience and helping them achieve desired business goals.

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