Procedures for payment of IGST, CGST and SGST

Procedures for payment of IGST, CGST and SGST

The GST bill which is officially known as The Constitution (One Hundred and twenty second Amendment) Bill, 2014, is an indirect tax that is levied by the Central and State governments on purchase and sale of goods and services except a few which are exempted. This bill subsumed many indirect taxes at the central and state level. It has been witnessed by the tax administrative that more the system as well as the procedures would be in electronic form, more will be the efficiency of tax administration which leads to greater satisfaction of the taxpayer, so the entire procedures for payment of IGST, CGST and SGST has been made online.

Payment Procedure:

  • Every taxpayer who wants to avail the facility of e-payment will access GST NETWORK (GSTN) for generation of the Challan through which payment is to be made. The taxpayer can create his draft challan by logging on to the GSTN Portal where his basic details (such as name, address, email, mobile no. and GSTIN) will be auto populated in the challan.

  • Upon creation of the draft challan, the taxpayer will fill in the details of the taxes that are to be paid. The page will have certain sets of mandatory fields, which the user has to provide. The taxpayer will have the option to pay CGST, IGST and SGST concurrently. The tax payers can partially fill in the challan form and “save” for temporary basis the challan for completion at a later stage. Before finalization, a saved challan can be “edited”. After the taxpayer has finalized the challan, he will generate the challan, for use of payment of taxes.

  • The remitter will have option of printing the challan for his record and once the challan is generated, it will be frozen and not allowed to be modified. The challan so generated will have a 14-digit Unique Common Portal Identification Number (CPIN), assigned only when the challan is finally generated, this will be helping the portal and other authorities to identify the challan. Since the challan would be prepared electronically, the chances of errors will be minimal.

  • Once e-payment mode has been selected, taxpayer will be able to see the options to choose between Internet Banking and Credit/Debit Cards for making payment. The taxpayer will be given various options of banks that the portal deals with.

  • Once the receipt of confirmation from the bank regarding successful completion of the transaction, GST Network (GSTN) will inform the relevant tax authorities about payment of taxes. A copy of the paid challan be it in print form or downloaded one, with auto-populated Challan Identification Number (CIN), date and time of payment and a statement confirming receipt of the amount by the bank will be provided to the taxpayer by GSTN.

  • GST Network will ensure a complete, comprehensive and continuous mechanism of tax credits. Under this service there will be tax only on value addition at each and every stage, with the producer/seller at every stage able to set off his taxes against the central/state GST paid on his purchases. The last consumer will have to bear only the GST charged by the last dealer in the chain of supply , with all set benefits at all the previous stages.