A Small Guide On GST Payment Processes

Indian companies are in a learning process, the goods and services tax payment process is significantly different from the existing processes. Namely, every stage of the procedure, including all other facets of GST, is now online through the GST portal. Section 49 of the Central Goods and Services Tax Act, together with the laws and regulations provided by the Central Board of Excise and Customs, governs the new GST online payment process.

Electronic/Digital Ledgers

In the GST website, a taxpayer can track/monitor his or her tax obligations throughout three ledgers, each kept in real-time:

  • Electronic Tax Liability Register (Electronic Liability Register): Reports for the total tax responsibility of the taxpayer — form GST PMT-01 on the GST website.
  • Electronic Input Tax Credit Ledger (Electronic credit ledger): tracks the tax payments already received during the distribution network e. All ITC statements are reported here — GST PMT-02 form.
  • Electronic Cash Ledger: All payments paid by taxpayers are shown in this — form GST PMT-05.

Interest On Delayed GST Payments

Pursuant to Section 50 of the CGST Act, interest will begin to accrue on a late payment a day after payment is received. This refers to all payments that have been delayed and transactions that have not been made in full. Payment of interest is compulsory and can be done on a voluntary basis, often without requests. The interest rate, not exceeding 18%, will be decided by the Government on the advice of the GST Council.

In the event of undue or excess ITC statements or unnecessary or disproportionate cuts in output tax liability, interest will be paid at a higher rate, not exceeding 24 percent, to be approved by the Government.

Unique Identification Number

Inside the online GST gateway, a unique identification number will be created for each charge or credit to the electronic money or credit ledgers, all things considered. This number will be shown in the relating section on the digital tax liability register.

GST Payment Forms

GST PMT-01 (Electronic tax liability register)

Any fee, interest, fines, late payment, or some other amount may be removed from this register.

GST PMT-02 (Electronic credit ledger)

All ITC claims shall be credited to this Ledger.

GST PMT-03 (Refund will be recredited)

Refund if the balance debited from an electronic credit ledger or electronic cash ledger is refused, as the case may be, must be re-credited by the request of the responsible officer.

GST PMT-04 (Inconsistency in electronic credit ledger)

Inconsistency in the electronic credit ledger, transmitted by this form to the officer.

GST PMT-05 (Electronic cash ledger)

Any fee, interest, fines, late payment or any other amount to be paid in cash shall be added to this Ledger.

GST PMT-06 (Challan for the deposit of tax)

Create and pay the challan

GST PMT-07 (Request for intimation of the difference relating to payment)

The application is intended for taxpayers where the sum to be charged is deducted from their account, but CIN has still not been provided by the financial institution to the Common GST Portal or CIN has been registered by the bank concerned (within 24 hours of debit) but not reported

Things To Remember

Where payment of any obligation is made, the digital credit ledger or electronic cash ledger will, therefore, be deducted; the electronic tax liability ledger shall be paid and the monthly net tax liability will be recorded.

In the event of unfair or excess ITC charges or excessive or unreasonable decrease in income tax liability, interest will be charged at an elevated rate, not exceeding 24 percent, to be informed by the State. Any individual who has charged tax on products and/or services will be considered to have paid the entire amount of these taxes to the receiver until it appears otherwise.

The balance in the electronic cash ledger or electronic credit ledger upon tax payment, interest, fines, fees, or just about any amount due can be reimbursed via digital cash or electronic credit ledger, respectively.

If the refund application is denied, either in full or in part, the balance debited, to the degree of the refusal, shall be re-credited by the appropriate officer to the electronic cash ledger or electronic credit ledger.

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