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How to Pay GST Payment Online?

April 27, 2021

How To Pay GST Payment Online

How to Pay GST Payment Online?

Goods and Services Tax regime tends to implement a uniform taxation structure in the country. The GST payment process and the GST-related transactions have made this tax regime less complex and accessible. As of now, both online and offline payments are at a taxpayer’s disposal for the GST. A taxpayer has to assess the tax which is required to be paid in cash related to the input tax credit availed. It is mandatory to generate a GST challan before or after logging into the GST portal as you file the returns.

GST payment process is common for all taxpayers. Unless there is an adequate cash balance in the electronic cash ledger, a GST challan payment should be used for depositing the cash into the cash ledger by using a prescribed mode of payment. Otherwise, i.e. if a sufficient balance is there in the cash ledger, it could proceed accordingly.

Let us have a glance at the various categories of taxpayers.

  • Regular Taxpayer

A regular taxpayer should use PMT 06 challan for paying in the electronic cash ledger at the time of filing GSTR 3B.

  • Quarterly Taxpayer

Quarterly taxpayers are those who belong to the Quarterly Returns Monthly Payment ( QRMP) scheme under GST. They deposit the tax by using PMT 6 in the course of the first two months of a quarter.

  • Taxpayers filing Nill GST returns.

Taxpayers have no sales or purchases or tax payable for the relevant tax period, either for the month or quarter, need not use the challan or make any payment.

  • Composition taxable persons.

Composition taxpayers have to take their sales/turnover details for the quarter in challan CM-08 and pay tax.

Payment mode for making GST Payment

Business entities have the option to choose the mode of payment in the form PMT -06 at the time of generating the GST challan. The choice is in accordance with the convenience of the time to file the GST before the due date, convenience, the banker, etc.

How to make GST payment Online?

Let’s see how to pay GST  online

  • GST payment online could be processed either through net banking or Debit/credit cards.

Online mode of payment means that the payment could be made either via internet banking or debit/credit cards. It is at the discretion of taxpayers to pay these modes with or without logging into the GST portal. Taxpayers can make online payments through the selected banks. Soon after making the payment electronic ledgers get updated. Don’t forget to ensure that the payment has been finished if the taxpayer generates challan without logging in.

  • Offline payment could be processed either through Over The Counter (OTC) ( Cheque /DD / Cash) or National Electronic Fund Transfer (NEFT), Real Time Gross Settlement (RTGS)

Offline payments such as cheque, DD, cash, NEFT, or RTGS  can be chosen voluntarily. One of these modes is chosen if the taxpayer bank is not included in the Net banking / Card payment list. Payment could be made through these modes upon generating GST challan, before or after logging into the GST portal. for the completion of the payment process, take the printout and complete the payment. In the case of over-the-counter payments, banks will process the instrument within a couple of days. The electronic ledger gets updated soon after that. It is to be borne in mind that 10000 is the limit for OTC  and if it exceeds, it is suggested to go for other modes. If the taxpayer proceeds via RTGS/NEFT while generating challan, the steps are different in the case. A printout of the challan should be taken, fill and submit along with that to the bank. After that, the bank provides the Unique Transaction Reference Number (UTR) normally within a  few hours. Then taxpayers are supposed to log into the portal to link the UTR no regarding the challan and the electronic cash ledger would be updated.

How to Generate a GST Challan and GST Challan Payment Online on the GST Portal for Direct GST Payment?

There are mainly two ways for generating GST challan either by logging into the GSTIN account or before logging in.

Steps for Challan generation before logging in:

  • After reaching on GST portal’s homepage, go to the services ---- payments ---- create challan

GST Online Payment Step 1

  • Fill in the GSTIN / ID and enter the captcha.

GST Payment -Step 2


  • Enter the required amounts for CGST, SGST, IGST, or other heads. After that choose the relevant payment mode


GST Online Payment Step 3

  • Re-Enter GSTIN / other ID for challan generation space and go to ‘proceed’.


GST Online Payment Step -4

  • After proceeding, click on the ‘download’ to download the challan that is generated and see the GST payment challan format

Steps for Challan Generation after Logging In

  •  A taxpayer could opt for challan generation after logging in, then he can click a button to create a challan on his dashboard itself. The rest of the steps are the same.

GST Payment after log in

  •  The amount should be in respective heads and proceed with the desired payment.


Timelimit to Finish GST Challan Payment

Time Limit to pay GST challan payment starts from the challan generation date. If it is an online mode, particularly in the prel-ogin challan creation for net banking mode payment has to be made immediately. Whereas Fifteen days would be available for offline mode

These details should be borne in mind while entering the details.

Net Banking
  • For net banking, choose the bank name and click on generate challan.
  • Then CPIN which means Common Portal Identification Number would be generated.
  • As for pre-login challan creation, the taxpayer should make the payment immediately whereas, for the post-login, it is up to 15 days to complete the payment.
Offline Modes
  • If the payment is deposited via NEFT / RTGS, provide the bank details of the chosen bank where cash is deposited and click on ‘ Generate Challan’
  • Challan copy generated with CPIN and gets saved automatically.  The time limit for the offline mode to pay is up to 15 days. The steps would be examined in detail.

How to complete GST payment at a Later Date?

In order to complete a payment for the challan generated earlier via net banking, debit/ credit card.
  • After logging into the GST portal, move to the head, ‘ services ---- payments ----challan history.
  • Click on the CPIN number listed down.
  • To proceed further, choose the mode of payment such as net banking, credit/debit card and proceed with the payment gateway from the selected bank and complete the GST payment process.
Payment completion later on an Earlier Generated Challan via OTC mode of payment.
  • Firstly fill up the required details with the taxpayer’s signature. Secondly submit the forms challan, cheque or DD or cash to the selected bank.

Within a couple of days, the electronic cash ledger would get updated.

Payment completion later on an Earlier Generated Challan regarding RTGS/NEFT
  • Fill up the required details on the challan regarding RTGS / NEFT.  Along with that, Depositor’s cheque details are to be filled and should be signed.
  • Submit the filled application, copy of challan, and cheque to the bank which you chose while generating challan. Account debit facility could also be used other than cheque. Within a couple of hours, the transaction would be processed and the Unique Transaction Number (UTR) and Challan Identification Number(CIN) would be received by the taxpayer on the registered email id or mobile no.
  • Log in to the GST portal, go to challan history.
  • Click on the CPIN listed below to enter the UTR number and confirm it. The electronic cash ledger gets updated.

How to Claim a GST Refund?

It is quite natural to have errors while filing returns or making GST payments. If the GST payment you made is excess, it would be shown in the electronic cash ledger balance. The balance in the electronic ledger is refundable by submitting a refund application form, RFD-01.

This refund application could be processed online and could be claimed within two years from the date of the payment.

Guide to file RFD 01 on GST Portal

  • Firstly, log into the GST portal. Then go to ‘services’ head ------Refunds --------Application for refund.
  • Then choose ‘Refund of Excess Balance in Electronic Cash Ledger ‘ and click ‘create’. Soon after you click on the ‘create ‘ option, the balance amount in the electronic cash ledger would be automatically uploaded in the form.

  • There is a space for the taxpayer to enter a refund in the editable ‘Refund Claimed  Table’ Then the amount can either be the same or less than the available amount in the electronic cash ledger. By clicking on ‘Click to view Electronic Liability Ledger to get all the details.

  • After seeing the outstanding demand, you could click on ‘GO BACK TO REFUND FORM’. You could also select the bank account to which you want to get credited the refunds.

  • Follow some steps to upload the documents.

  1. Provide a description of the document.
  2. Use the ‘‘Choose file’ option to add a document.
  3. Use the ‘delete’ icon to delete the uploaded document and finally click on ‘save’ after finishing uploading the document.
  • Tick the checkbox in the declaration. Choose the authorized signatory from the dropdown. Depending upon the organization click on’ file with DSC or File with EVC.

In the case of Digital Signature Certificate (DSC), you could click on the sign button. If it is in the case of electronic verification code (EVC), OTP would be received on the mail id or mobile number and verify it.

  • Once you submit your RFD 01 form ARN receipt could be downloaded in PDF format from services ------ refund -------Refund----My saved / files application. The facility to check your GST payment status and GST status under refunds is at your disposal.

 Tax and ITC GST Refund Claims  

  • Timelimit for the Refund

For claiming refund, form GST RFD 01 should be submitted online within two years from the date. After filling the return a registered taxpayer could make a claim of balance at disposal in the electronic ledger.

ITC Refund scenarios and Exceptions

Scenario to claim ITC Refund

  • Zero-rated goods and services, a claimable and unutilized input tax credit on which tax was not paid, could be claimed as a refund.
  • A scenario where the accumulation of ITC happened owing to high rate of tax than the output supplies.

 Exceptions where No Refund of ITC is valid

  • A GST ITC refund can’t be claimed if the unutilized ITC is for the GST paid on exported goods with excise duty.
  • If the supplier of the goods has got an excise duty concession or made a claim on integrated tax paid on supply.

Documents to prove that a refund is due to the applicant should be processed along with the application and it should be substantiated that the tax burden was not passed on to another person. If the refund amount is less than 2 lakh, it is required to submit the application along with documentary evidence and it should be certified that the burden of the tax is limited.



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