Goods and Service Tax has been an integral part of many businesses over three years now. Claiming the right Input Tax Credit and payment of GST is a routine one cannot miss.
Therefore, to ensure transparency and tracing, the GST portal enables taxable entities to view their tax liabilities through a register and two ledgers, at a single place, each maintained in real-time. These are:
- Electronic liability register: This register accounts for the taxpayer’s gross tax liability in form GST PMT-01. This will reflect the amount of tax payable.
- Electronic credit ledger: This ledger records the details of Input Tax Credit (ITC) available in form GST PMT-02.
- Electronic cash ledger: The amounts available to settle the tax liability are visible here in Form GST PMT-05.
The critical aspect here is the payment of GST. Any tax amount paid by the taxpayer will be visible in the electronic cash ledger. This payment has to be made through a GST challan.
In this article, we will cover:
To initiate a GST related payment, a challan in FORM GST PMT-06 has to be generated on
the GST portal. This challan can be generated by any taxpayer or any other person on his/her behalf. The GST PMT-06 will be valid for fifteen days.
Notified Format Of Form GST PMT-06
The GST challan, PMT-06 can be generated for the payment of:
- Fees or
- Any other amount
This payment can be made via:
- Internet Banking through authorised banks;
- Credit card or Debit card through the authorised bank;
- NEFT or RTGS from any bank; or
- Over the Counter payment through authorised banks.
However, over the counter payments are accepted only for deposits up to INR 10,000 per challan per tax period, by cash, cheque or demand draft.
Here, if there is a commission payable in respect of any payment, it will be borne by the person making such payment.
Step 1: Vist https://www.gst.gov.in/ and under ‘Services’, select ‘Payments’ and then ‘Create Challan’.
Step 2: Enter the ‘GSTIN/Other Id’, ‘Captcha code’ and ‘Proceed’.
Here, the other IDs that can be entered are:
- Unique Identification Number (UIN)
- Tax Return Preparer Identification Number (TRPID)
- Temporary Identification Number (TMPID)
Step 3: Update the ‘Tax Liability’ details with the amount for which the challan is to be created. The taxpayer’s details will be auto-populated. The taxpayer has to select the preferred mode of payment in this step. Once the details are added/selected, the taxpayer can also ‘Save’ the challan for future use. To proceed to create the challan, click on ‘Generate Challan’.
Step 4: Tthe taxpayer will have to authenticate the transaction through an OTP. For this, he/she will have to enter the registered mobile number associated with GSTIN/Other ID entered above.
Step 5: On successful authentication, the taxpayer can ‘Proceed’ to ‘Make Payment’ through the selected mode and ‘Download’ the challan. This challan will be valid only for 15 days.
The taxpayer can log in to his/her GST dashboard and generate the GST challan as well.
Step 1: Log in to the GST Portal.
Step 2: Under ‘Services’ click on ‘Payments’ and then select ‘Create Challan’. The saved challans can also be viewed here.
Step 3: Update the ‘Tax Liability’ details with the amount for which the challan is to be created. The taxpayer has to select the preferred mode of payment in this step. Once the details are added/selected, the taxpayer can also ‘Save’ the challan for future use. To proceed to create the challan, click on ‘Generate Challan’.
Step 4: A summary page showing the details of the challan will then appear. After confirming the details, the taxpayer can ‘Make Payment’ through the selected mode and ‘Download’ the challan. This challan will be valid only for 15 days.
- Once the amount is successfully credited to the concerned Government’s account, a Challan Identification Number (CIN) will be generated by the collecting bank, and the same shall be visible in the challan.
- The taxpayer will be able to download the challan containing all the details of tax paid after such payment is made. If ‘Over the Counter’ payment mode is selected, the taxpayer will have to take a printout of the challan and make the payment at an authorised bank.
- It is important to note that this challan has to be generated once the tax liability has been paid within 24 hours of paying tax.
- The tax paid will be credited to the cash ledger account of the taxpayer (GST PMT-05).