Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 7-10-2016 Last Replied Date:- 16-10-2016 – Payment of tax In GST regime the following are the types of payments to be made- Tax to the credit of Central Government if it is intra-state supply (CGST); Tax to the credit of State Government if it is intra State supply (SGST); For inter-state supply tax to be is Integrated GST; Certain categories of registered persons are required to pay TDS and TCS; Interest, penalty, fees and any other payment as required. Who are liable to pay? The following are liable to pay tax- The supplier of goods or service; The recipient under reverse charge mechanism in specified cases like imports and other notified supplies; Third person (in the case of e-commerce operator responsible for TCS or Government Department responsible for TDS). When tax is to be paid? The GST payment is to be done at the time of supply of goods as explained in Section 12 and at the time of supply of services as expl
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s well as credit ledger. Cash payments will be first deposited in the Cash Ledger and the tax payer shall debit the ledger while making payment in the monthly returns and shall reflect the relevant debit entry number in his return. The payment of taxes for the month of March shall be paid by the 20th of April. In the present regime the service tax as well excise duty is to be paid for the month of March by 31st March itself. Composition tax payers are required to pay the tax on quarterly basis. The timing of payment is from 00.00 hrs to 20.00 hrs. The date of credit to the credit of the Government account is considered as the date of deposit of tax dues. In the present regime, if the payment is paid by cheque, the date of receipt of cheque would be considered as the payment date, provided the cheque is not dishonored. But in GST regime it has been changed. Actual date of credit is the time of deposit of tax. The taxable person has to be careful in this regard. How payment is to be made
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E-payment through internet banking, credit card, debit card; Real time gross settlement (RTGS); National Electronic Fund Transfer (NFFT); Over the Counter payment in branches of banks authorized to accept deposits. When the payment is made by NEFT or RTGS from any bank the mandate form shall be generated along with the challan. The said form shall be submitted to the bank from where the payment is to be made. Such mandate for shall be valid for 15 days from the date of generation of challan. On successful credit of the amount to the concerned government account a Challan Identification Number will be generated by the collecting bank and the same shall be indicated in the challan. Where the bank account of the concerned taxable person is debited but no Challan Identification Number is generated he may represent in Form GST PMT -6 through the common portal to the bank or electronic gateway through which the deposit was initiated. On receipt of Challan Identification Number from the bank
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nput tax credit on account of CGST shall be utilized towards payment of SGST and vice versa. The credit of IGST would be permitted to be utilized for payment of IGST, CGST and SGST in that order. Only tax can be paid through credit ledger of the tax payment. Interest, penalty and fees cannot be paid by debit in the credit ledger. Section 35(8) prescribes the method of payment where the taxpayer has tax liability beyond the current period. In such a situation, the order of payment is as follows: Self assessed tax and other duesrelated to returns of previous tax periods; Self assessed tax and other dues related to the return of current tax period; Any other amount payable under the provisions of the Act or the rules made there under including any confirmed demand under Section 51. Extension for payment allowed? In case of self assessed liability no time extension is permitted. Section 55 of the Act provides for the payment by installment procedure. According to this section the Commissio
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as filed his return, the input tax credit of the recipient would not be confirmed. Pre-registration of credit card The tax payer would be required to pre-register his credit card, from which the tax payment is intended with the common portal maintained on GSTN which may attempt to put in a system with banks in getting the credit card verified by taking a confirmation from the credit card service provider. The payments using credit cards can be allowed without any monetary limit to facilitate ease of doing business. Payment by unregistered person If any payment is required to be made by a person who is not registered under the Act shall be made on the basis of a temporary identification number generated by the proper officer through the common portal. The details of such payment shall be recorded in a register in Form GST PMT-5, to be maintained on the common portal. Identification number for each transaction A Unique Identification Number shall be generated at the common portal for eac
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