Are GST Payments Taxable Top 25 Points You Need to Know!

Are GST Payments Taxable? Top 25 Points You Need to Know!

Many individuals still need to learn what GST and its components entail. Many issues are raise, including what the ramifications are. “Are GST payments taxable?” is a commonly ask question.

In India, the Goods and Services Tax (GST) is an indirect tax levied on selling goods and services. It is a comprehensive multi-stage, destination-based Tax since it incorporates practically all indirect taxes except a few state levies. The GST is a multi-stage tax impose at each stage of the manufacturing process; however, it is intend to be refund to all parties involve in the manufacturing process other than the final consumer, and it is collect at the point of consumption rather than the point of origin, as previous taxes were.

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One must know the top 25 important points about Tax Payments under GST.

1.The types of payments that will be made under the GST system

Under the GST regime, the Central GST (CGST, which goes into the Central Government’s account) and the State GST must be pay for each intra-state supply (SGST, going into the account of the concern State Government). The Tax to be pay on an interstate supply is the Integrate GST (IGST), which comprises both the CGST and the SGST components. This is a crucial factor to remember concerning GST tax payments.

Furthermore, certain registered individuals must pay Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) to the government account. Interest, penalties, fees, and any extra payments will be request where applicable.

2.Time of GST payment to be done by a taxable person

When providing items as indicate in Section 12 and services describe in Section 13. The time is determine by the earliest of the three occurrences: receiving money, sending an invoice, or finishing the supply. The preceding sections discussed numerous scenarios as well as several tax aspects.

3.The Primary Characteristics of the GST Payment Process

The following functionalities will be incorporate into the GST tax payment processes:

  • In all payment modalities, electronically generate challans from the GSTN Common Portal are use instead of manually prepare challans.
  • Allowing taxpayers to pay their taxes whenever and wherever they wish is convenient for them.
  • Payments will be online, which is very convenient.
  • Data about tax collection that is both rational and available in electronic format
  • Tax revenue is send to the government’s account more promptly.
  • Without the need for paper, transactions are perform.
  • Accounting and reporting should be finish as quickly as feasible.
  • All receipts are electronically reconcil.
  • Bank procedures have been simplify.
  • Digital Challan data

4.The Supplier’s Tax Payment Period

The ordinary taxpayer must pay monthly taxes by the 20th of the next month. As previously stated, payment can also be deduct from the Credit Ledger. Taxes for March must be pay by April 20th. Composition taxpayers will have to pay Tax every quarter. Payment will be pay between the hours of 0000 and 2000.

5.No Tax Paid, but Return Filed by a Taxable Person

In certain instances, the Return is not consider genuine. Section 27 (3) of the MGL states that a taxable person’s Return will only be deem legitimate once the tax payable on the Return is paid. Only the valid Return would be utilised to offer the receiver an input tax credit (ITC). In other words, the recipient’s ITC will only be validate once the supplier has paid his complete self-assessed Tax and filed his Return, and the recipient has submitted his Return.

Section 28 specifies that a taxable individual who has yet to file a proper return can use such credit once his self-assesse Tax due has to pay.

6.The deadline for filing taxes cannot be extend or paid in monthly installments.

The time restriction for tax payment cannot be extend in the case of self-assesse liability, nor can it be pay in monthly installments. In some circumstances, the responsible authority has been delegate to extend the deadline or allow for instalment payments—section 55 of the MGL. Readers should be aware of this crucial fact about GST tax payments.

7.Entities Liable to Pay GST

In general, GST is payable by the supplier of goods or services. The recipient may be held accountable under the reverse charge system, such as imports and other register supplies. Furthermore, in some cases, the third party is financially accountable (say, an e-commerce operator responsible for TCS or the Government Department liable for TDS).

8.The payment date by check or credit of the money in the government account is the date of deposit of tax dues.

The date on which the Government account was credit is taken into consideration.

9. E- ledgers

Every taxpayer is require to have an electronic tax liability register. When a taxpayer registers for the Common Portal (GSTN), two e-ledgers (Cash and Input Tax Credit) and an electronic tax obligation register are open and shown on his dashboard.

10. Payment Methods to Be Use

GST payments can be made using the following methods:

Only Tax can be pay via the Common Portal by debiting the taxpayer’s Credit Ledger. Interest, fines, and fees cannot pay by debit in the credit ledger. Taxpayers can claim an input tax credit for taxes paid on inputs and use it to pay output tax. However, no CGST input tax credit may be utilise to offset SGST payments and vice versa. The IGST credit could be utilise to pay the IGST, CGST, and SGST in that sequence.

By debiting the taxpayer’s Cash Ledger on the Common Portal in cash. Deposits can be made in a variety of ways, including E-Payment (Internet Banking, Credit Card, Debit Card); Real Time Gross Settlement (RTGS)/National Electronic Fund Transfer (NEFT), and Over Counter Payment in branches of banks authorize to take GST deposits.

11.ITC Ledger

Input Tax Credit will be represent as self-assessed in monthly returns in the ITC Ledger. This ledger’s credit can only be use to pay taxes, not additional sums such as interest, fines, or fees.

12.Register of Tax Liability

The Tax Due Register displays a taxpayer’s total tax liability for the month (after netting).

13.GSTN and Authorized Banks Collaboration

The GSTN and the Bank’s Core Banking Solution (CBS) would be linked in real-time. The CPIN is promptly transfer to the Bank through an electronic string for verification and payment. The Bank will submit a challan identification number (CIN) to the Common Portal to verify payment receipt.

14.Cash Ledger

All cash deposits and TDS/TCS collect on the taxpayer’s behalf will be documents in the cash ledger. The information will be reflect in real-time. This ledger may be use to make any GST payments.

15.Create or modify the GST Challan

A taxpayer can generate a challan for tax payment via the GSTN site. The taxpayer or his authorise agent must enter the payment information. It is possible to partially complete the challan form and then “store” it for later completion. A stored challan can be “update” before it is finalise. Once the taxpayer has completed the form, the challan will be generate. The remitter can print the challan for his records.

It is important to note that once a challan has been produce online, it cannot be modify. He can save the challan in the middle for modification later. However, the taxpayer can only modify the challan once it has been complete and the CPIN has been create. This is one of the most important things about GST tax payments.

16.Validity Period of the Challan

A challan is valid for fifteen days after it is produce before being remove from the system. On the other hand, the taxpayer can generate a fresh challan at any time.


CPIN stands for Common Portal Identification Number (CPIN), issued during the challan-generating process. A 14-digit unique number identifies the challan. The CPIN, as previously indicated, is valid for 15 days.

18.CIN and Its Importance

Challan Identification Number is abbreviate as CIN. It’s a 17-digit code comprise of a 14-digit CPIN plus a 3-digit Bank Code. CIN is generate when authorise banks or the Reserve Bank of India (RBI) payment is receive and credit to the appropriate government account. The money was receive and credit to the correct government account. The approved bank sends the CIN to both the taxpayer and the GSTN.

19.If the taxpayer owes money from previous months, make GST payments in the due order.

Section 35(8) establishes an order of payment when a taxpayer’s Tax due exceeds the current return period. In this situation, the payment order should be as follows: first, self-assessed Tax and interest for the previous period; next, self-assessed Tax and interest for the current period; and lastly, any additional sums payable, including any confirmed requests under section 51. This is the correct order to use at all times.


Electronic Focal Point Branch is abbreviate as E-FPB. These are approve bank branches that can accept GST payments. Each approved bank shall select just one branch as its E-FPB for pan-India transactions. Under each main topic, the E-FPB must create accounts for all governments. Each State and UT government will need to create 38 accounts (one for CGST, one for IGST, and one for SGST). GST receipts received by such an E-FPB will be credit to the appropriate E-FPB account. For NEFT/RTGS transactions, the RBI will operate as the E-FPB.

 21.Pre-registration of a credit card on the GSTN website is require for GST payment.

The taxpayer would be force to pre-register his credit card from which the tax payment would be made. Credit card payments may thus be enable without any monetary restriction to promote business convenience.

 22.TDS under the GST regime

TDS stands for Tax Deducted at Source (TDS). According to Section 37, this provision is meant for the government, government undertakings, and other designate organizations that make contractual payments to suppliers above Rs.10 lakhs. When making such a payment, the competent Government/authority will subtract 1% of the total due amount and send it to the appropriate GST account.

 24.A ‘TDS Deductor’ Can Recover Such TDS

  • The TDS Deductor will account for such TDS in the following ways:
  • Section 19 of the MGL, in conjunction with Schedule III, requires such deductors to be register.
  • They must return any TDS collected by the 10th day of the month following the month in which the TDS was collect and reported under GSTR 7.
  • The deposited TDS amount will be record in the supplier’s electronic cash ledger.
  • They must furnish the deductor with a certificate of such TDS within 5 days of deducting it, or they would be penalize Rs.100 per day, up to a maximum of Rs.5000.

 25.Tax Collected at Source (TCS)

This regulation solely applies to E-Commerce Operators as specified in MGL section 43C. Every E-Commerce Operator shall withhold a percentage (to be announced later on the GST Council’s suggestion) of the amount owing from him to the supplier when making actual payment to the provider. 

The withheld amount must be put into the proper GST account by such E-Commerce Operator by the 10th of the next month. The TCS amount will be enter into the supplier’s electronic cash ledger.

Frequently Asked Questions:

1.Who is liable to pay GST?

  • All the service providers or distributors of goods have to pay GST.

 2.Can a person pay GST in installments?

  • If someone cannot pay the entire amount of GST at a time, a letter requesting the commissioner to allow the person to pay GST in installments can be written.

 3.Is GST a form of direct Tax?

  • GST is consider to be an indirect tax. Income tax is a direct tax.


The top 25 points are the most important points about Tax Payments under GST. This list will help people understand what Tax Payments are under GST and whether one needs to pay taxes for GST payments.

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