As per the guidelines, every registered taxpayer should pay the taxes by the 20th of every month. GST payment is to be done online and it is mandatory to furnish the GST returns on monthly basis. Payments to be made under GST are divided into three categories:
- IGST: IGST is the tax paid to the center when the supply is made interstate
- CGST: CGST is the tax paid to the center when the supply is made within the state
- SGST: SGST is the tax paid to the state when the supply is made within the state
GST payment can be made in two ways. They are:
- Cash Ledger: GST Payment can be done online or offline by generating a Challan on GST portal. When the tax to be paid is more than Rs.1 Lac, GST payment is to be done online only.
- Credit Ledger: The credit of ITC (Input Tax credit) can be taken for GST Payment. It cannot be taken to pay the Interest, penalty or late fees.
If a dealer fails to pay the complete GST on time, an interest at a rate of 18% is charged. Also, a penalty is to be paid by the dealer. Thus, it becomes necessary to make GST payment accurately and on time for a business to grow.