GST Payment Process

A joint committee was formulated to study and submit its report on the business process for GST payment in early 2014. Almost one year later the empowered committee under the co-ownership of the Additional Secretary (Revenue) submitted its report, highlighting the key objectives of the report. The report brings out the key issues in tax collection and the need for a uniform system for collection of taxes. It also talks about developing a detailed accounting procedure which is common to both central and state governments for GST.

There is now a common GST format to be used for payment of GST. Once the businesses register on the GSTN portal, they will have access to this format. Their basic details like name, address, email and mobile no. and GSTIN will be auto populated on the challan. All the four taxes that are CGST, SGST, IGST and the 1% special tax will be on the same form. This will be a convenient option for the tax payers as they will not have to go to multiple sites to fill the forms.

However, some taxes and duties that remain outside the purview of GST will continue to be collected as per the existing procedures. Examples of these are the tax on petroleum, alcohol and tobacco, electricity duty etc.

The empowered committee has proposed the three modes of payment of GST using the common format. The first one is through internet banking through authorized banks and by use of credit and debit cards. The second is through NEFT/RTGS from any bank, including other than authorized banks. A limit of Rs. 10,000/- is proposed on the third payment method, which happens to be the over the counter payment through authorized banks. However, the thrust would be for payments through the internet and the third option will have a very limited role.

On the GSTN portal the taxpayer can select the payment gateway out the ones available. The gateway service provider will levy a charge for the tax payment and this will be payable over and above the tax amount. While the tax amount will get deposited in the government account, the gateway charges will be retained by the gateway provider.

The GSTN portal will provide the breakup under the four tax heads. The authorised banks are expected to create the associated accounts for CGST, IGST, Additional tax and state-wise accounts for SGST. The breakup received from GSTN will be used to credit the amount under the respective heads.

Based on the recommendations of the Joint committee, the Reserve Bank of India will play the role of the aggregator through its e-Kuber system. Under Section 20 of the RBI Act, RBI will be the sole banker to the government of India. The RBI will consolidate the data files received from the authorised banks, debit their accounts and correspondingly credit the CGST,IGST, and additional tax accounts of the government of India, and SGST accounts of each state/UT government account with RBI. The RBI will generate the daily e-scrolls and also consolidate the date-wise monthly statements (DMS) received from the authorised banks. It will also be responsible for the resolution to the discrepancies reported by GSTN.

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