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
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.
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.
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:
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:
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.
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.
Step 2:- Click on create challan in the dashboard after login.
Then under Services > Payments, click on Create Challan button,
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.
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
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)
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.
Step 2- Enter your GSTIN and the CPIN. Then, click on Track Status.
Step 3.1.1- If 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.'
Step 3.2.1- If Status- 'NOT PAID'
By clicking on the "Download," you can save an offline copy.
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."
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.
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?
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.
Step 2: Then Click on Services tab >>>Refunds>>> Application for Refund.
Step 3: Then, Select the Refund Type and Click on CREATE
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.
Step 5: Then, 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. 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 ).”
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?
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-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- 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.
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.