GST- Payment

All payments under the GST regime are tracked in two ledgers namely:

·                        Electronic cash ledger ( Form GST PMT – 3)

·                        Electronic credit ledger (Form GST PMT – 3)

Electronic cash ledger

Credit under this ledger contains cash payments towards tax, interest, penalty, fee etc… It can be used for the payment of tax, interest, penalty, fee etc…

Payments under the GST regime is allowed to be made through NeFT/RTGS, Internet banking, Debit/Credit card, Challan (only if the amount is less than or equal to Rs.10,000)

The following amounts shall be paid only by debiting the electronic cash ledger-

·                        TDS u/s 46.

·                        TCS u/s 56.

·                        Amount payable under Reverse charge mechanism as per section 8.

·                        Amount payable under Composition levy as per section 9.

·                        Interest/Penalty/Fee

Electronic Credit ledger

Credit under this ledger contains Input tax credit claimed. No interest or penalty or fee can be paid through this ledger.

The credit in this ledger shall be used in the following order –

1. To pay dues relating to previous tax periods

2. To pay dues relating to current tax period.

Any TDS claim or TCS claim or claim in the form GSTR-2 (return of inward supplies) shall be credited to the Electronic credit ledger.

Credit utilisation

IGST Credit shall be used to pay GST liability in the following order-

1.                     IGST liability

2.                     CGST liability

3.                     SGST liability

CGST credit shall be used to pay the GST liability in the following order-

1.                     CGST liability

2.                     IGST liability

CGST credit shall not be used to pay SGST liability.

SGST credit shall be used to pay the GST liability in the following order-

1.                     SGST liability.

2.                     IGST liability.

SGST credit shall not be used to pay CGST liability.

Tax liability

The tax liability shall be reflected in the Electronic tax liability ledger in the form GST PMT-1.

The payment challan shall be generated in the form GST PMT-4 through GST portal. It shall be valid for 15 days.

Payment can be made by unregistered person on the basis of a Temporary Identification Number allotted to the person by the proper officer.

A Challan Identification number (CIN) shall be generated in the GST portal on successful credit of the payment to the government.

Tax Deducted at Source

Where payment is made by Central or state government or Local authority or Governmental agencies or such other notified person and the value of the total supplies under a contract exceeds Rs. 500,000/-, the person who makes payment shall deduct tax at the rate of 1%.

The tax deducted shall be deposited within 10 days from the end of the month in which tax is deducted.

The certificate for tax deduction shall be furnished to the deductee within 5 days from the date of credit to the government.

Failure to issue the certificate shall result in a late fee of Rs. 100 per day subject to a maximum of Rs. 5,000/-