A Complete Review on GST Payment
GST payment- an
introduction:
If you're a business owner or self-employed and having any
attachment to purchasing or supplying goods and services is required to
file GST. If you belong to this type, based on the timeline for filing GST, you
will need to make GST payment. You first need to know about your GST payment
outstanding and how you could pay it.
The total amount of your GST
payment can be calculated after deducing your input tax credit and subtract
it from your outward tax liability to calculate your total GST payment amount.
How many types of GST
can be paid by the taxpayers?
IGST – Integrated
Goods and Service Tax. IGST is charged at the time of the movement of goods and
services from one state to another.
CGST – Stands for
Central Goods and Services Tax. Paid to the Central Government on intra-state
supplies.
SGST – SGST means
State Goods and Service Tax. This one is paid to the State Government on
intra-state supplies.
UTGST – The Union
Territory Goods and Services Tax is paid to the Union Territory Government.
Process of
calculating the GST payment amount:
Below is the step by step process of the general way of
calculating tax liability under GST:
1. In order to make sure about the amount to be
paid as GST, the taxpayer is required to deduct input tax credit from Outward
Tax Accountability.
2.
From the amount, TDS and TCS both are required
to be deducted.
3. Now,
the taxpayer is required to add any interest or the late fee relevant to him/her.
Who are accountable
to pay GST?
Below persons are liable to pay GST:
·
A registered individual if any obligation exists
after all the adjustments
·
A Registered individual if need to pay the tax
under Reverse Charge Mechanism
·
eCommerce operators collecting TCS
·
Registered individuals deducting TDS
Modes of payment used
for making GST payment:
Below modes of payments can be used –
Payment through
credit ledger – The taxpayers can use the balance of input tax credit in
the electronic credit ledger for making the payment of GST accountability. By
using this process only tax can be paid. You won’t be able to pay interest,
penalty etc. through credit ledger.
Online payment
through cash ledger – Taxpayers can use this process for making payment of
tax, interest, fee, penalty, etc. after making a payment challan.
Offline payment through
cash ledger – In offline payment option a taxpayer can make the tax
payment, interest or penalty by cash over the counter if the amount didn’t
exceed Rs.10, 000 per challan per tax period. Although the person still require
to generate online challan.
Whether time limit
for the payment of tax can be extended or paid by monthly installment?
This facility is not allowed to an individual with self-assessed liability. In special cases, the competent authority has been allowed to
extend the time period or pay by monthly installment.
What happens if the taxable person files the return but does not make payment of tax?
If any taxable person has made GST return
filing but then does not make payment of tax. In such a situation the
return will not be considered as an effective return. If any supplier has not
paid the full self-assessment tax but filed the return, the ITC of the
recipient won't be confirmed.
Contact FinacBooks:
Make your business GST compliant. Contact FinacBooks for new
GST Registration through online. Our team of experts can help to make the
process easy for you.
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