Ans. In the GST regime, for any intra-state supply, taxes to
be paid are the Central GST (CGST, going into the account
of the Central Government) and the State GST (SGST, going
into the account of the concerned State Government). For
any inter-state supply, tax to be paid is Integrated GST
(IGST) which will have components of both CGST and SGST.
In addition, certain categories of registered persons will be
required to pay to the government account Tax Deducted
at Source (TDS) and Tax Collected at Source (TCS). In
addition, wherever applicable, Interest, Penalty, Fees and
any other payment will also be required to be made.
Ans. In general the supplier of goods or service is liable
to pay GST. However in specified cases like imports and
other notified supplies, the liability may be cast on the
recipient under the reverse charge mechanism. Further, in
some cases, the liability to pay is on the third person (say
in the case of e-commerce operator responsible for TCS or
Government Department responsible for TDS).
Ans. At the time of supply of Goods as explained in Section
12 and at the time of supply of services as explained in
Section 13. The time is generally the earliest of one of the
three events, namely receiving payment, issuance of invoice
or completion of supply. Different situations envisaged and
different tax points have been explained in the aforesaid
Ans. The payment processes under proposed GST regime will have the following features:
• Electronically generated challan from GSTN Common Portal in all modes of payment and no use of manually prepared challan;
• Facilitation for the taxpayer by providing hassle free, anytime, anywhere mode of payment of tax;
• Convenience of making payment online;
• Logical tax collection data in electronic format;
• Faster remittance of tax revenue to the Government Account;
• Paperless transactions;
• Speedy Accounting and reporting;
• Electronic reconciliation of all receipts;
• Simplified procedure for banks;
• Warehousing of Digital Challan.
Ans. Payment can be done by the following methods:
(i) Through debit of Credit Ledger of the taxpayer maintained on the Common Portal- ONLY Tax can be paid. Interest, Penalty and Fees cannot be paid by debit in the credit ledger..
Tax payers shall be allowed to take credit of taxes paid on inputs (input tax credit) and utilize the same for payment of output tax. However, no input tax credit on account of CGST shall be utilized towards payment of SGST and vice versa. The credit of IGST would be permitted to be utilized for payment of IGST, CGST and SGST in that order
ii) In cash by debit in the Cash Ledger of the taxpayer maintained on the Common Portal. Money can be deposited in the Cash Ledger by different modes, namely, E-Payment (Internet Banking, Credit Card, Debit Card); Real Time Gross Settlement (RTGS)/ National Electronic Fund Transfer (NEFT); Over the Counter Payment in branches of Banks Authorized to accept deposit of GST.
Ans. Payment of taxes by the normal taxpayer is to be done
on monthly basis by the 20th of the succeeding month. Cash
payments will be first deposited in the Cash Ledger and the
taxpayer shall debit the ledger while making payment in
the monthly returns and shall reflect the relevant debit
entry number in his return. As mentioned earlier, payment
can also be debited from the Credit Ledger. Payment of
taxes for the month of March shall be paid by the 20th
of April. Composition tax payers will need to pay tax on
quarterly basis. Timing of payment will be from 0000 Hrs
to 2000 Hrs.
Ans. No, this is not permitted in case of self-assessed
liability. In other cases, competent authority has been
empowered to extend the time period or allow payment in
installments. (Section 55 of MGL).
Ans. In such cases, the return is not considered as a valid
return. Section 27 (3) of the MGL provides that the return
furnished by a taxable person shall not be treated as valid
return unless the full tax due as per the said return has
been paid. It is only the valid return that would be used for
allowing input tax credit (ITC) to the recipient. In other
words, unless the supplier has paid the entire self-assessed
tax and filed his return and the recipient has filed his
return, the ITC of the recipient would not be confirmed.
As per section 28, a taxable person who has not furnished
a valid return shall not be allowed to utilize such credit till
he discharges his self-assessed tax liability.
Ans. It is the date of credit to the Government account.
Ans. Electronic Ledgers or E-Ledgers are statements of
cash and input tax credit in respect of each registered
taxpayer. In addition, each taxpayer shall also have
an electronic tax liability register. Once a taxpayer
is registered on Common Portal (GSTN), 2 e-ledgers
(Cash & Input Tax Credit) and an electronic tax liability
register will be automatically opened and displayed on
his dashboard at all times.
Ans. Tax Liability Register will reflect the total tax liability of a taxpayer (after netting) for the particular month.
Ans. The cash ledger will reflect all deposits made in
cash, and TDS/TCS made on account of the taxpayer. The
information will be reflected on real time basis. This ledger
can be used for making any payment on account of GST.
Ans. Input Tax Credit as self-assessed in monthly returns
will be reflected in the ITC Ledger. The credit in this ledger
can be used to make payment of TAX ONLY and not other
amounts such as interest, penalty, fees etc.
Ans. There will be real time two way linkage between
the GSTN and the Core Banking Solution (CBS) of
the Bank. CPIN is automatically routed to the Bank
via electronic string for verification and receiving
payment and a challan identification number (CIN) is
to automatically sent by the Bank to the Common Portal
confirming payment receipt. No manual intervention
will be involved in the process by any one including bank
cashier or teller or the taxpayer.
Ans. Yes, a taxpayer can partially fill in the challan form and
temporarily “save” the challan for completion at a later stage.
A saved challan can be “edited” before finalization. After
the tax payer 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.
Ans. No. After logging into GSTN portal for generation of
challan, payment particulars have to be fed in by the tax
payer or his authorized person. He can save the challan
midway for future updation. However once the challan is
finalized and CPIN generated, no further changes can be
made to it by the taxpayer.
Ans. Yes, a challan will be valid for fifteen days after its
generation and thereafter it will be purged from the System.
However, the taxpayer can generate another challan at his
Ans. CPIN stands for Common Portal Identification
Number (CPIN) given at the time of generation of challan.
It is a 14 digit unique number to identify the challan. As
stated above, the CPIN remains valid for a period of 15 days.
Ans. CIN stands for Challan Identification Number. It
is a 17 digit number that is 14-digit CPIN plus 3-digit
Bank Code. CIN is generated by the authorized banks/
Reserve Bank of India (RBI) when payment is actually
received by such authorized banks or RBI and credited
in the relevant government account held with them. It
is an indication that the payment has been realized and
credited to the appropriate government account. CIN
is communicated by the authorized bank to taxpayer as
well as to GSTN.
Ans. Section 35(8) prescribes an order of payment where the taxpayer has tax liability beyond the current return period. In such a situation, the order of payment to be followed is: First self-assessed tax and interest for the previous period; thereafter self-assessed tax and interest for the current period; and thereafter any other amounts payable including any confirmed demands under section 51. This sequence has to be mandatorily followed
Ans. E-FPB stands for Electronic Focal Point Branch.
These are branches of authorized banks which are
authorized to collect payment of GST. Each authorized
bank will nominate only one branch as its E-FPB for
pan India Transactions. The E-FPB will have to open
accounts under each major head for all governments.
Total 38 accounts (one each for CGST, IGST and one
each for SGST for each State/UT Govt.) will have to be
opened. Any amount received by such E-FPB towards
GST will be credited to the appropriate account held by
For NEFT/RTGS Transactions, RBI will act as E-FPB.
Ans. TDS stands for Tax Deducted at Source (TDS). As
per section 37, this provision is meant for Government
and Government undertakings and other notified
entities making contractual payments in excess of Rs.
10 Lakhs to suppliers. While making such payment, the
concerned Government/authority shall deduct 1% of the
total payable amount and remit it into the appropriate
Ans. Any amount shown as TDS will be reflected in the
electronic cash ledger of the concerned supplier. He can
utilize this amount towards discharging his liability
towards tax, interest fees and any other amount.
Ans. TDS Deductor will account for such TDS in the following ways:
1. Such deductors needs to get compulsorily registered under section 19 read with Schedule III of MGL.
2. They need to remit such TDS collected by the 10th day of the month succeeding the month in which TDS was collected and reported in GSTR 7.
3. The amount deposited as TDS will be reflected in the electronic cash ledger of the supplier.
4. They need to issue certificate of such TDS to the deductee within 5 days of deducting TDS failing which fees of Rs. 100 per day subject to maximum of Rs. 5000/- will be payable by such deductor.
Ans. This provision is applicable only for E-Commerce
Operator under section 43C of MGL. Every E-Commerce
Operator needs to withhold a percentage (to be notified
later on the recommendation of the GST Council) of the
amount which is due from him to the supplier at the time
of making actual payment to the supplier. Such withheld
amount is to be deposited by such E-Commerce Operator
to the appropriate GST account by the 10th of the next
month. The amount deposited as TCS will be reflected in
the electronic cash ledger of the supplier.
Ans. Yes. The taxpayer would be required to pre-register
his credit card, from which the tax payment is intended,
with the Common Portal maintained on GSTN. GSTN may
also attempt to put in a system with banks in getting the
credit card verified by taking a confirmation from the
credit card service provider. The payments using credit
cards can therefore be allowed without any monetary limit
to facilitate ease of doing business.