Starting October 1, 2020, the Centre is making GST e-invoicing mandatory for companies with an annual turnover of over ₹ 500 crore for their business-to-business transactions. There would be a relief though for relatively smaller businesses, as the threshold for mandatory e-invoicing is set to be raised to ₹ 500 crore on the recommendations of an empowered panel of the Goods and Services Tax (GST) Council.

Introduction

The Insurance Regulatory and Development Authority of India (IRDAI) has requested the Finance Ministry again to cut GST rates on life and health insurance premiums from 18 % to 5%. The GST Council is expected to take up this matter at its 42nd meet scheduled for September 19.

Additional GST payment using DRC 03 can either be voluntarily by the taxpayer when he or she discovers the shortfall, or it can be when the taxman issues a SCN.

In a bid to improve tax compliance, the Government proposes to roll out compulsory e-invoicing of GST from 1st October 2020. However, the threshold of annual turnover for mandatory e-invoicing has been raised from the existing ₹ 100 Crore to ₹ 500 Crore.

Payment of GST has become a relatively hassle-free and simple process with the arrival of the challan system along with online transactions. Businessowners find it very convenient to follow the new mechanism because they can transfer the requisite money by NEFT, RTGS, Credit Cards among other methods.

To make a GST payment, the GST payment challan has to be first generated from the GST portal. Once this is done, the payment can be made by internet banking, credit/debit card, NEFT or cash payment at selected banks. In this article, we will go through the procedure for creating a GST payment challan and making the GST payment.

GST Payments Modes

The payment for the GST can be made through the following modes:

Internet Banking through the authorised banks;
Debit card or Credit card through the authorised bank;
The National Electronic Fund Transfer or Real Time Gross Settlement from any bank; or
Over-the-counter payment through the authorised banks for deposits up to 10,000 per challan per tax period, by cash, cheque or through a demand draft.

Banks Accepting The Payments For GST

Given below is the list of banks that have been authorised to accept GST payments on behalf of the Government. The list comprises all nationalised banks and a handful of large private banks such as ICICI and HDFC. Taxpayers can generate a GST payment challan and proceed to one of the following banks for payment of GST by cash, cheque or DD.

ALLAHABAD BANK;

ANDHRA BANK;

AXIS BANK;

BANK OF BARODA;

BANK OF INDIA;

BANK OF MAHARASHTRA;

CANARA BANK;

CENTRAL BANK OF INDIA;

CORPORATION BANK;

DENA BANK;

HDFC BANK;

ICICI BANK LIMITED;

IDBI BANK;

INDIAN BANK;

INDIAN OVERSEAS BANK;

JAMMU AND KASHMIR BANK LIMITED;

ORIENTAL BANK OF COMMERCE;

PUNJAB AND SIND BANK;

PUNJAB NATIONAL BANK;

STATE BANK OF INDIA;

SYNDICATE BANK;

UCO BANK;

UNION BANK OF INDIA;

UNITED BANK OF INDIA;

VIJAYA BANK.

Under the Indian taxation system, all the goods and services are categorised into 6 slabs. It is significant for all business people to know under which category their goods or services fall. The GST rate finder service is used to find the GST rates of all the goods and services. This service is also referred to as the HSN finder. By using the HSN finder, we can also find the HSN codes for goods and services.

Here is the procedure for creating the GST Payment Challan

You can follow the steps below to easily create a GST payment challan. This is the first step towards making the GST payment.

Step 1: Login to the GST Portal

Click on button create challan in the GST dashboard.

Step 2: Enter details of the GST payment you would like to remit

In the page shown below, enter details of the GST payment that you would like to remit. The amount has to be provided under heads of the CGST, IGST, Cess and the SGST. Also, the breakup of the payment made towards tax, fee, interest, penalty and others can also be mentioned. Select the mode of payment from the payment modes option. Once all these details are mentioned, click on Generate Challan.

Step 3: Verify GST payment details

In the next screen, you are supposed to verify details of the payment and click on make payment. In case it is cash payment, a GST payment challan like the one shown below will be generated. The payment challan can be produced at one of the banks that is mentioned above to make over the counter payment.

If you choose to pay the goods and services tax online, then you must verify all essential details related to your payment. In case, there are some problems in calculation, then you may end up paying some extra money. Hence, you must take steps to avoid such a situation.