GST: Definition, GST Online Payment Process

GST payment is integral to meeting the tax requirements of professionals and businesses. Hence, understanding the step-by-step GST payment process is crucial. The government allows offline and online payment methods to keep the process flexible for taxpayers. In the following sections, we will discuss what is the meaning of GST and its online payment process.

What is GST?

GST is an indirect tax in India introduced in 2017 to replace several other taxes, including VAT, excise duty, service tax, etc. It is a destination-based, comprehensive, multi-stage tax the government levies on each value addition. With multiple benefits like easier tax filing, increased revenue, and improved affordability for many items, GST benefits the citizens and the economy significantly.

Who is Liable for GST Payment?

Here is the list of taxpayers who must pay GST:

  • All registered GST dealers for their outstanding tax liabilities, if any
  • Registered dealers under the Reverse Charge Mechanism (RCM)
  • Merchants, operators, and aggregators in the e-commerce space

Types of GST Taxpayers and their Payment Processes

Different types of taxpayers must follow different GST payment procedures as follows:

  • Regular Taxpayers: Regular taxpayers must use the PMT-06 challan when filing GSTR-3B to pay to the cash ledger.
  • Quarterly Taxpayers: Taxpayers who choose the QRMP Scheme must use the PMT-06 challan to deposit the tax for the quarter’s first two months when filing GSTR-3B.
  • Nil GST Return Taxpayers: These taxpayers have no purchase, sale, or tax payment for a month or quarter. Therefore, they do not need to pay the tax or generate a challan.
  • Taxpayers Under the Composition Scheme: These taxpayers must summarise their quarterly sales or turnover and generate a CMP-08 challan for tax payment.

Modes of GST Payment

The two main modes of paying GST are online and offline. Factors like time availability, convenience, and banking institution are primary factors determining the taxpayer’s choice:

  1. GST Online Payment: The payment methods include net banking, debit or credit card, IMPS, and UPI.
  2. GST Offline Payment: The payment methods include cheque, demand draft, cash, NEFT, and RTGS.

Stepwise Procedure for GST Online Payment

These are the steps to generate the challan without portal login:

  • Visit the official GST portal at
  • Navigate to the Services tab and click Payments from the dropdown menu.
  • Under Payments, click ‘Create Challan’.
  • Enter the GSTIN Number and click to proceed.
  • Select the type of tax from CGST, IGST, SGST, etc.
  • Fill in the challan details and choose the preferred payment method from net banking, debit, credit cards, etc.
  • Reach a secure payment gateway and enter the payment details to complete the transaction.
  • After successful GST online payment, save the challan counterfoil for record purposes.
  • To ensure successful payment processing, click “Track Payment Status” and enter the Challan Identification Number (CIN).

After logging in to the portal, those who wish to generate the challan will find the ‘Generate Challan’ button on the dashboard. The remaining steps for filling and generating the challan will be the same.

Steps to Check the Challan History

Follow these steps to check the Challan history on the GST portal:

  • Navigate to the homepage and enter the username and password to access the GST portal.
  • Click “Services” from the menu.
  • Choose “Payment” from the dropdown menu.
  • Select “Challan History” to access the record of transactions.

Time Restrictions to Make GST Online Payment

Remembering the time limit to complete GST online payment after challan generation is crucial. While it is 15 days for the offline method, it should be immediate with an online mode. Ensure the following for online GST payments during challan generation:

  • For net banking, select the bank’s name and click ‘Generate Challan’ to generate the CPIN (Common Portal Identification Number).
  • One must pay the tax immediately to generate the challan without logging in.
  • For generating the challan post-login, the taxpayers have up to 15 days to complete the payment.

Understanding what is the meaning of GST and its payment methods is extremely significant for taxpayers to stay compliant. Every business must remain aware of the GST payment methods and adhere to the payment dates to continue hassle-free business operations. Accurate and timely tax payments are crucial for maintaining a business’s reputation and financial health. Embracing the GST online payment methods enhances efficiency, fosters transparency, and streamlines processes.

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