GST, or Goods and Services Tax, is an indirect tax paid in India on purchasing goods and services. It is comprehensive because it comprises almost all indirect taxes apart from a few state taxes. Also, GST is multi-staged because it is imposed at every step during production. It is also location-based because it is collected from the point of utilization and not from the point of origin. This tax came into practice on July 1, 2017, by the Indian government. The goods and services tax replaced various other taxes imposed by the central and state government. The tax rate rules and regulations are governed by the goods and service council, which comprises the finance ministers of the central government and all the states. The GST is supposed to replace a few other indirect taxes, and its implementation has received mixed reactions.
You can make a GST payment online and offline, and when we are given the gift of the best technology, why pay offline? When the online payment of GST is an easily accessible and fuss-free procedure, it is always wise to go for it. You can pay GST by generating a GST challan before or after logging into the goods and services tax portal. GST payment procedure is the same for all taxpayers. Wondering how online payment of GST is made or how it helps to make your lifeeasier? Keep scrolling to know the details.
Online mode of payment for goods and servicestax
When generating the GST challan in the form of PMT-06, businesses should choose any online payment mode of GST. Here are the different modes of GST payment available on the portal.
- Net banking
- Debit card/ credit card
- Immediate payment services (IMPS)
- Unified payment interface (UPI)
Online payment of GST mode refers to payments made through internet banking. Taxpayers can pay through these modes with and without logging into the GST portal. Taxpayers are allowed to pay from certain banks that the GST portal offers. Like making any other payments, you must choose the bank and then make GST payments online with the help of a card or net banking. Once the GST payment is made, the electronic cash ledger is automatically updated; if the taxpayer generates the challan without logging in, they must ensure that the payment is immediately completed. As a registered taxpayer, you must pay GST on sales after deducting eligible ITC when filing for GST returns. To check your GST payment status, you need to log in to the portal using the following steps:
Services>Payments>Challan history
Steps to make an online payment of GST
You can make online payments of GST on the same portal as a GST challan with the help of internet banking facilities. For that, you need to follow the below-mentioned steps:
- Access the goods and services tax (GST) portal
- Click on services>payments>create the challan option
- The ‘create challan’ page is displayed on the portal; fill in your GSTIN in the required field
- Type the characters as displayed and enter the captcha text
- Click on the ‘proceed’ button
- Enter the payment details you need to make in the tax liability grid
- Select the mode of online/e-payment
- Click on generate challan button
- Enter the one-time password sent on the registered mobile number in the OTP authentication box
- Click on proceed, and the challan is generated
- Select net banking as the mode of E-payment
- Choose the bank through which you want to make the payment
- Read the terms and conditions
- Click on the make payment button
Benefits of online payment of GST
Online payment of GST or goods and services tax helps streamline business operations.It further prevents the piling up of taxes while providing a comprehensive ‘input tax credit mechanism’ across the whole supply chain. Here are a few benefits you can avail if you make an online payment of GST:
1- Incentive on making digital payments
Small taxpayers, or MSMEs, are majorly the ones responsible for generating jobs. Thus, it is essential to give them consideration in the form of incentives to increase employment and support economic growth. Therefore, they get numerous incentives that help them save money by making online payments of GST.
2- Quick and fuss-free procedure
The process of online GST payment is super simple, and it is quite beneficial for start-ups since they do not have to run from pillar to pillar to get additional registrations like VAT, excise, and service tax.
3- Less Compliance
Under Goods and services tax, there is just one unified return to be filed, whereas earlier, there was VAT and service tax, and it had its separate set of returns and compliances. There are 11 returns under GST since the number of returns has come down. Out of the 11 returns, four basic returns apply to all taxable people under GST.
4- Improved efficiency of logistics
Under GST, the implications for the inter-state movement of goods have become less. Earlier, the logistics industry had to maintain multiple warehouses from state to state to avoid the CST and state entry taxes on inter-state movement. As a result, reduced unnecessary logistics cost is seen, which helps increase profits for businesses involved in the supply of goods through transportation.
5- Increased transparency and reduced chances of fraud
Since the introduction and implementation of GST, everything has become online. This has led to increased transparency. Now that the department can access the tax files easily, the chances of fraud and tax evasion have decreased rapidly. Therefore, online payment of GST has made it possible to reduce the chances of fraud and is one of the most reliable tax-paying systems.
This online payment of GST comes with several benefits under one roof that you can avail of as a business owner. EnKash is a spend management platform that works for the betterment of the corporate sector and budding businesses. You can entrust them with frictionless and smooth payment options for your business, and they will provide you with the best solutions.
