Goods and Services Tax Review on GST Payment in India

Posted by Ananya Nair on December 27th, 2019

GST payment- an introduction:

If you're a business owner or self-employed and having any attachment with purchasing or supplying of goods and services is required to file GST. If you belong to this type, based on the timeline for filing GST, you will need to make GST payment. You first need to know about your GST payment outstanding and how you could pay it.

The total amount of your GST payment can be calculated after deducing your input tax credit and subtract it from your outward tax liability to calculate your total GST payment amount.

How many types of GST can be paid by the taxpayers?

IGST – Integrated Goods and Service Tax. IGST is charged at the time of the movement of goods and services from one state to another.

CGST – Stands for Central Goods and Services Tax. Paid to the Central Government on intra-state supplies.

SGST – SGST means State Goods and Service Tax. This one is paid to the State Government on intra-state supplies.

UTGST – The Union Territory Goods and Services Tax is paid to the Union Territory Government.

Process of calculating the GST payment amount:

Below is the step by step process of general way of calculating tax liability under GST:

1. In order to make sure about the amount to be paid as GST, the taxpayer is required to deduct input tax credit from Outward Tax Accountability.
2. From the amount, TDS and TCS both are required to be deducted.
3. Now, the taxpayer is required to add any interest or the late fee relevant to him/her.

Who are accountable to pay GST?

Below persons are liable to pay GST:

• A registered individual if any obligation exists after all the adjustments
• A Registered individual if need to pay the tax under the Reverse Charge Mechanism
• eCommerce operators collecting TCS
• Registered individuals deducting TDS

Modes of payment used for making GST payment:

Below modes of payments can be used –

Payment through credit ledger – The taxpayers can use the balance of input tax credit in the electronic credit ledger for making the payment of GST accountability. By using this process only tax can be paid. You won’t be able to pay interest, penalty, etc. through credit ledger.

Online payment through cash ledger – Taxpayers can use this process for making payment of tax, interest, fee, penalty, etc. after making a payment challan.

Offline payment through cash ledger – In offline payment option, a taxpayer can make the tax payment, interest or penalty by cash over the counter if the amount didn’t exceed Rs.10, 000 per challan per tax period. Although the person still requires to generate an online challan.

Few commonly asked questions on GST payment:

Whether time limit for the payment of tax can be extended or paid by monthly installment?

This facility is not allowed to an individual with self-assessed liability. In special cases, competent authority has been allowed to extend the time period or pay by monthly installment.

What happens if the taxable person files the return but does not make payment of tax?

If any taxable person has made GST return filing but then does not make payment of tax. In such a situation the return will not be considered as an effective return. If any supplier has not paid the full self-assessment tax but filed the return, the ITC of the recipient won't be confirmed.

Contact FinacBooks:

Make your business GST compliant. Contact FinacBooks for New GST Registration through online. Our team of experts can help to make the process easy for you.

Original Source: A Complete Review on GST Payment