Complete Guide to GST Payment in India: Who, When, and How to Pay

 

The Goods and Services Tax (GST) has simplified India’s indirect tax system by merging multiple taxes into one unified framework. However, timely and accurate GST payment remains a critical responsibility for all registered taxpayers.

What is GST Payment?
GST payment is the tax amount that registered businesses must pay to the government on their taxable sales. This payment is made from the tax collected from customers, after adjusting Input Tax Credit (ITC), and is then deposited with the government.

Who Needs to Pay GST?
GST must be paid by:

• Registered businesses: Those with annual turnover above ₹40 lakh for goods and ₹20 lakh for services.
• Suppliers and service providers: Who collect GST on their sales.
• Importers: Who pay Integrated GST (IGST) on imports.
• Reverse Charge Recipients: Where Reverse Charge Mechanism (RCM) applies, buyers are liable to pay GST directly to the government.

Types of GST Payments

1. Core Tax Categories
• CGST: Charged on intra-state sales, payable to the central government.
• SGST: Charged on intra-state sales, payable to the state government.
• IGST: Charged on interstate sales or imports, payable to the central government.
2. Other Tax Payments
• TDS (Tax Deducted at Source): Deducted by government entities before paying suppliers.
• TCS (Tax Collected at Source): Collected by e-commerce platforms from sellers.
• RCM: Where the buyer pays tax directly, especially in transactions with unregistered vendors.
3. Additional Charges
• Interest: 18–24% annually for delayed payments.
• Penalty: ₹10,000 or 10% of unpaid tax—whichever is higher.
• Late Fee: ₹50 per day (₹25 CGST + ₹25 SGST).

GST Payment Due Dates

Taxpayer Type	Return Form	Due Date
Regular Dealer	GSTR-3B	20th of the following month
Composition Dealer	CMP-08	18th after each quarter
TDS Deductors	GSTR-7	10th of the following month
E-commerce Operators	GSTR-8	10th of the following month

How to Calculate GST Payable
GST Payable = Output Tax – ITC – TDS/TCS + Interest + Late Fee

Modes of GST Payment

1. Online (Above ₹10,000)
• Visit gst.gov.in
• Navigate: Services > Payments > Create Challan
• Select tax heads (CGST/SGST/IGST)
• Choose payment mode: Net Banking, UPI, NEFT/RTGS
• Download the challan receipt.
2. Offline (Up to ₹10,000)
• Generate challan
• Visit authorized bank
• Pay via cash, cheque, or demand draft
• Collect the stamped receipt.

Important GST Forms (PMT Series)

• PMT-06: For generating payment challan
• PMT-01: Tax liability register
• PMT-05: Cash ledger
• PMT-02: Credit ledger for ITC
• PMT-07: Complaint form if CIN not generated
• PMT-04: Report discrepancy in ITC credit

GST Ledgers on Portal

• Tax Liability Register: Tracks dues, interest, penalties
• Cash Ledger: Reflects available cash balance
• Credit Ledger: Shows eligible ITC (not usable for penalties or interest)

How to Track GST Payment Status

• Visit gst.gov.in
• Go to: Services > Payments > Track Payment Status
• Enter CPIN or CIN to check the payment status

Common Mistakes and Solutions

• Incorrect tax calculation: Reconcile sales data with GSTR-3B
• Late payment: Use reminders or calendar alerts
• Wrong HSN/SAC code: Refer to the official code list
• Delayed return filing: Avoid daily late fees of ₹50

Paying GST on time and accurately not only avoids penalties but also builds credibility for your business. Use the GST portal efficiently, monitor your ledgers regularly, and strictly adhere to deadlines prescribed by the government.