To improve India’s tax system and achieve the goal in the mission, “One nation one tax”, GST that is goods and services tax, was implemented by the government of India. The tax majorly affects the supply of service and goods providers throughout the country. 

GST registration might seem to be a cumbersome process to a beginner. Well-done research is necessary before starting with the procedure. Following are some points that will highly contribute to understanding the process.

In today’s post, we will learn how to pay GST online step-by-step.

What is GST?

GST (goods and services tax) is the system of tax that is imposed on goods and services. These goods and services are made available to consume domestically.

The consumers pay the tax as a final price at the time of sale. This tax is then passed on to the government by the seller. 

The tax is at a single rate across the country. It is used by most countries, all across the globe. This system of tax brings in the uniformity in payment of taxes and allows centralised registration. 

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Why should we pay GST?

GST was introduced to replace several taxes such as the service tax, purchase tax, exercise duty, value-added tax, etc. The main objective behind incorporating GST in the country is to eliminate double taxation or, in other words, to eliminate tax on the tax system.

Under GST, the tax is levied on the net value added portion rather than the entire portion of the value. In the year 2000, a committee was set up by the Indian government to draft laws for GST. After 17 years, on 1st July 2017, the law came into force.

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To make the payment, an official GST site was created where GST registration was done. But most people are unaware of the different modes of payment. The article mainly explains the online mode of GST payment.

Different modes of GST payment

 There are different modes of GST payment. Offline mode, online mode, or by ledgers, are the 3 different modes via which you can pay GST, that is, goods and services tax.

  • Offline mode: GST payment can be made at your nearest bank.
  • Online mode: You can make the payment either by debit card or credit card. Net banking is also an option to proceed with the payment.
  • Ledgers: An option to make the payment via electronic cash ledgers is also available under the services tab.  

Steps to pay goods and services tax (GST) online

Following are the steps that will help you make GST payments online without any confusion.

  1.  Once the GST registration is done on the official GST website, you are required to log in to your account by entering your user id and password.
  2. Once you are done with the login process, click on the services tab. By clicking on the services tab, you get to see various options in which create challan come on the top of the list. Select the option to create challan. 
  3.  Now in the challan section, you are supposed to enter every detail of the amount carefully under each heading. Once you are through with the filling up of details, select the payment method.
  4.  The different options for payment modes are e-payment, over the counter or NEFT/RTGS. Select e-payment if you want to pay online.
  5.  Once you have filled in all your particulars under different headings like IGST, CESS, CGST, click on the generate challan button present on the bottom right of the page.
  6. In case, you are unsure of the details that you have filled in or have a doubt; you can always click on the save option and keep the challan for the future. Hit the generate challan option only if you are sure of the details that you have provided. 
  7.  Once the challan has been generated, you are required to proceed with the GST payment.
  8. Here, again you get to choose from three modes of GST payment. You can pay over the counter at your nearest bank or make the payment via NEFT/RTGS. You can also pay online by using your debit or credit card or via net banking. To pay online, click the e-payment option.
  9. Now hit the make payment option that is available on the same page at the bottom.
  10.  After completing the online process of payment, you will receive an acknowledgment of your payment. You will be allowed to download the challan that was generated during the process.
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You should be aware that it is mandatory to pay the taxes online if the tax liability is more than ₹10,000.

What are the period of GST registration and GST payment?

  • GST registration – The period for applying for GST registration is 30 days. Within 30 days you are supposed to register yourself after becoming liable to obtain the registration.
  • GST payment – GST payment is made on a monthly basis. Any delay in the payment or lower payment than your dues will lead to a fine. They will charge you 18% interest on your dues. You will have to pay the fine in case of any of the above situations.

What are the benefits of GST to small and medium businesses?

The implementation of GST has proved to be of great advantage to small businesses. The system has lowered the burden of tax payments at multiple levels.

Moreover, being GST compliant has made it easier for small businesses to get access to loans such as business loans and MSME (Micro, Small, and Medium Enterprises) loans.  

Whether it is a business loan ranging from ₹1 lakh to ₹7.5 lakhs or an MSME loan, Zip loan is always there to help small businesses with financial aid.

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The struggle to raise timely credits from a trustworthy financial service provider platform is now over. With the delivery of loans within just three days, we constantly work towards bridging the gap for different businesses. 

Zip loan is currently operational in more than six cities. These cities include Bhopal, Delhi, Ghaziabad, Gurgaon, Faridabad, Indore, and many more. You can call us on 011 – 4310 – 9577 or drop us a mail at customer.care@ziploan.com.

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Frequently Asked Questions

How to apply for GST number?

To apply for GST number online you need to follow the steps mentioned below:
Contact details.
Email address.
PAN (Permanent Account Number).
Draft all the documents.
Make online payment.
Upload the documents.
Generate ARN.

What are the types of GST?

The 4 types of GST in India are:
SGST (State Goods and Services Tax)
CGST (Central Goods and Services Tax)
IGST (Integrated Goods and Services Tax)
UGST (Union Territory Goods and Services Tax)

What GST means?

GST full form is (Goods and Services Tax) is a value-added tax levied on most goods and services sold for domestic consumption.

Who has to pay GST?

The registered supplier of goods or services will need to pay GST.

How is GST calculated?

GST can be calculated simply by multiplying the Taxable amount by GST rate. If CGST & SGST/UTGST is to be applied then CGST and SGST both amounts are half of the total GST amount. For example, GST including amount is Rs. 525, and GST rate is 5%.

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