Payment of tax under GST Act 2017

Payment of tax under GST

The amount of tax, interest, penalty etc. payable by the person is required to pay either by utilizing balance available in electronic cash ledger or electronic credit ledger. The amount utilized for payment from the balance in electronic credit or cash ledger will be shown in GST PMT-1.

Payment of tax, interest, penalty and other amounts [Section 49 of the CGST Act, 2017]:

Section 49(1) of the CGST Act, 2017 every deposit made towards tax, interest, penalty, fee or any other amount by a person by internet banking or by using credit or debit cards or National Electronic Fund Transfer or Real Time Gross Settlement or by such other mode and subject to such conditions and restrictions as may be prescribed, shall be credited to the electronic cash ledger of such person to be maintained in such manner as may be prescribed.

Section 49(2) of the CGST Act, 2017 the input tax credit as self-assessed in the return of a registered person shall be credited to his electronic credit ledger, in accordance with section 41, to be maintained in such manner as may be prescribed.




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.
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 othe case of e-commerce operator responsible for TCS or Government Department responsible for TDS).
At the time of supply 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 3 events, namely receiving payment, issuance of invoice or completion of supply. Different situations envisaged and different tax points have been explained in the aforesaid sections.

The payment processes under proposed GST regime will have the following features:

1. Electronically generated challan from GSTN Common Portal in all modes of payment and no use of manually prepared challan;

2. Facilitation for the taxpayer by providing hassle free, anytime, anywhere mode of payment of tax;

3. Convenience of making payment online;

4. Logical tax collection data in electronic format;

5. Faster remittance of tax revenue to the Government Account;

6. Paperless transactions;

7. Speed Accounting and reporting;

8. Electronic reconciliation of all receipts;

9. Simplified procedure for banks;

10. Warehousing of Digital Challan.

Payment can be done by the following methods:

1. Through debit of Credit Leger 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 utilise the same for payment of output tax. However, no input tax credit on account of CGST shall be utilised towards payment of SGST and vice versa. The credit of IGST would be permitted to be utilised for payment of IGST, CGST and SGST in that order.

2. 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 Authorised to accept deposit of GST.