GST payment is the periodical remittance of GST amount payable by the business. It one of the major requisites for a business to stay compliant. As per the guidelines, every registered regular taxpayer must make GST payment with a due date – 20th of every month along with the submission of GSTR-3B Return.
The GST payment can be made online - promising a seamless and transparent experience.
In making the GST payment, the GST act allows the businesses to set the eligible input tax (ITC) with the output GST collected on the sales. Thus, before making GST payment, businesses need to first apply the GST Payment calculations. The GST payment calculations steps are given below:
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As per the GST payment rules, if a person furnishes a GST Monthly Return without paying the tax due, the return furnished will be considered as an invalid return. Without furnishing the return for a month and paying the tax due, the subsequent month's return cannot be furnished. Also, if the tax due is not paid, interest will be applicable on the same, starting from the GST Payment due date on which the tax was supposed to be paid.
Hence, it is necessary to understand the GST payment method in order to avoid the penalties of non-payment of tax.
GST payment ledgers
For the purpose of GST tax payment, every registered dealer will need to maintain 3 ledgers in the GST payment portal, which is the starting step of the GST payment process. The 3 ledgers are:
GST payment ledgers set-off
To pay the liabilities shown in the Electronic tax liability register, a person can use the balance in the Electronic cash ledger and Electronic credit ledger.
When liability is paid:
Here's a step by step process for how to make your GST payment online.
Note: If the payment is to be made by NEFT or RTGS, a mandate form will be generated along with the challan on the GST Portal . The mandate form has to be submitted to the bank from where the payment is made. The mandate form will be valid for 15 days.
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