Tutorial on Making GST Payments

 Purpose: This tutorial serves both as an internal training document for GST officers and as an awareness guide for taxpayers and consultants. It explains the payment mechanism in GST, legal provisions, electronic ledgers, payment methods, and recent enhancements.

1. Overview of GST Payment System

Under Section 49 of the CGST Act, 2017 and Rule 87 of the CGST Rules, 2017, every taxpayer is required to pay tax, interest, penalty, and other dues using the GST portal.

• Payment Channels:

• Online: Net Banking, Debit/Credit Cards, UPI

• Offline: NEFT/RTGS, Over-the-Counter (OTC) 

2. Challan Creation (Form GST PMT-06)

Pre-login Creation:

• Visit https://www.gst.gov.in

• Click on "Create Challan" under "Services > Payments"

• Enter GSTIN/Temp ID and captcha

• Fill in tax liabilities and payment mode

Post-login Creation:

• Login to GST Portal

• Go to Services > Payments > Create Challan

• System auto-fetches liabilities

Challan is valid for 15 days from generation. [Rule 87(2), CGST Rules]

3. Payment Modes

1. Net Banking

• Immediate credit to Electronic Cash Ledger

2. Credit/Debit Card

• Subject to bank limits and gateway rules

3. UPI

• Now integrated via NPCI and BBPS platform

4. NEFT/RTGS

• Mandated under Rule 87(3)

• Download Mandate Form with Unique Reference Number (URN)

• Present to bank for remittance

• Reflects in Cash Ledger within 2 to 24 hours

5. Over-the-Counter (OTC)

• Permissible under Rule 87(4)

• Available for taxpayers with turnover less than Rs. 10,000/month

4. Electronic Ledgers

1. Electronic Liability Register: Section 49(7), CGST Act – Reflects total outstanding liability.

2. Electronic Credit Ledger: Section 49(2), CGST Act – Reflects available ITC.

3. Electronic Cash Ledger: Section 49(1), CGST Act – Contains deposited cash usable for payments.

5. Filing Return with Payment (GSTR-3B)

• Use cash and ITC to discharge liabilities

• Rule 88A: Prioritizes IGST credit

• Balance paid through PMT-06 cash challan

6. Form GST PMT-09: Intra-Head/Inter-Head Transfer

Purpose: To shift balance in Cash Ledger from one head (e.g., CGST) to another (e.g., SGST)

Statutory Basis: Section 49(10) of CGST Act; Rule 87(13) of CGST Rules

Steps:

• Login > Services > Ledgers > Electronic Cash Ledger > File PMT-09

• Select transfer type (inter/intra)

• Submit with DSC/EVC

7. Reconciliation and Tracking

• View status of challans under Services > Payments > Challan History

• Match payment amounts with GSTR-3B liabilities

• Ensure no mismatch between Credit Ledger and returns

• Refer Rule 87(9) for details

8. Voluntary Payment via DRC-03

Used for:

• Liability arising out of audit, SCN, or suo moto corrections

Legal Reference: Section 73 & 74; Rule 142(2) of CGST Rules

Steps:

• Login > Services > User Services > My Applications > DRC-03

• Enter details, reasons, and mode of payment

• Offset using ITC/Cash

9. Handling Payment Failures

Common Issues:

• Bank not listed

• Payment failed but amount debited

• Delay in ledger update

Resolutions:

• Check challan status under “Challan History”

• Wait for 24 hours before retrying

• Raise grievance on portal with payment proof

10. Recent Developments

• UPI Integration: For faster mobile payments

• BBPS Support: Bharat Bill Payment integration on portal

• RBI e-Mandate: Affects recurring card payments

• Updated FAQs and User Manuals: Regularly updated at https://tutorial.gst.gov.in

• Advisory dated 17.04.2023: Enhancement of e-payment system under BBPS

11. FAQs

Q1: Can I pay GST without logging in? Yes, using the pre-login challan creation feature. [Rule 87(2)]

Q2: Can I make payment for another GSTIN? Yes, by entering the correct GSTIN during challan generation.

Q3: What happens if I overpay? Excess amount remains in the Cash Ledger and can be claimed as refund or used for future liabilities. [Rule 87(8)]

Q4: Can I pay via multiple modes in one challan? No. One challan must be paid via a single mode.