What Are The Main Features of Payment Process?
Posted On May 15, 2020
Payments to be made in GST system
In the GST system, CGST (Central Goods and Services Tax) is paid for any intra state supply; taxes go directly to the government and SGST (State Goods and Services Tax) goes to the respective state government. For any inter-state supply, IGST (Integrated Goods and Services Tax) is paid. IGST includes elements of both SGST and CGST. Also, some registered individuals will be required to TDS (Tax Deduct at Source) and TCS (Tax Collected at Source) to the government. Moreover, if necessary, fees, interest penalty and any other payment will also be needed to be paid. An individual can learn GST process by enroll in a GST course.
Who is liable to pay GST?
Generally, the person who supplies goods or services or both is liable to pay GST. Though, in specific cases like – import and additional prescribed supplies the liability to pay tax may be on the recipient according to the reverse charge mechanism. In addition, the liability to pay GST may fall upon the e-commerce operators in some defined cases of intra state supply. Also, government departments making payment to a vendor who exceeds the specific limit of 2.5lakh for a contract are required to subtract TDS and e-commerce operators are required to assemble TCS on the net price of the supplies which are made by utilizing them and give it to the government.
When the liability to pay GST occurs? cbd payment processor
The liability to pay GST occurs right at the time of supply of goods or services or both. The time of payment is generally the earliest of the following three events – receipt of payment, issue of invoice or end of supply.
What are the main features of GST payment process?
The GST payment process has following features –
Make easy for tax payers by providing anytime, anywhere and hassle free payment mode of tax.
Electronically generated challan from the common portal GSTN in every mode of payment. No need of manually arranged challan.
Tax collection data logically and in electronic format.
Ease of making payment online.
Quicker payment of taxes to the government.
Immediate reporting and accounting.
Store housing of digital challan.
Makes easy process for banks.
Electronic settlement of all receipts.
How the payment is done?
Payment in the GST system can be the methods mentioned below –
If the payment is begin made through case than by debiting the amount in cash ledger, maintained on the common portal, of the tax payer. Cash can be deposited in the cash ledger by various modes like – e-payment (debit card, credit card, internet banking), NEFT (National Electronic Fund Transfer)/RTGS (Real Time Gross Settlement or over the counter payment in authorized branches of banks to accepts the GST payment.
Through debiting the credit ledger, maintained on the common portal, of the tax payer – only tax be paid. Fees, interest and penalty can’t be paid by this method. Tax payers are allowed to take input tax credit on tax paid and use it for the paying the output tax. Keep in mind that, input tax credit taken on CGST can’t be utilizes for the SGST and other way around. The input tax credit from IGST can be exploited in paying in specified order – IGST, CGST and then SGST.
When payment is to be made by supplier?
By a normal tax payer, payment of taxes is to done on the monthly base by the 20th of the following month. While making the payment, cash payment is firstly put in the cash ledger and the tax payer debits the ledger in the monthly returns. Ta payer shall show the debit entry number in the return.