Payment of GST

SECTION : GST Payment of Tax

  • Lesson Objectives

    On completion of this lesson, you will be able to understand:

    ·            Liability to pay GST

    ·            Intra-state and Inter-state supply

    ·            Tax Liability Register

    ·            Electronic Cash Ledger

    ·            Electronic Credit Ledger


    Please go through the First Video of the Chapter 7.

    Liability to pay GST

    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 persons say in the case of e-commerce operator responsible for TCS or Government Department responsible for TDS.


    Payments to be made in GST regime

    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.


    Intra-state Supply

    Intra-state supply means within the State. For any intra-state supply, GST has to be paid. GST has two components.


    1.      Central GST (going into the account of the Central Govt.)

    2.      State GST (going into the account of the State Govt.)






    Inter-state Supply

    For any inter-state supply, tax to be paid is Integrated GST (IGST) – Paid to the Central Govt. It will have components of both CGST and SGST. CGST will go to the Central Government and SGST will go to the State Government based on destination / consumption principle.


    Other Payments


    ·        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.


    No Interest Payment on Wrongly Paid GST

    The onus of determining whether a transaction is an ‘intra-State or inter-State on the assessee. If a taxpayer wrongly determines an intra-state transaction as inter-state and in-turn pays IGST, then the taxpayer will be refunded IGST but will have to pay applicable GST. The interest will not be payable on delayed payment of say CGST and SGST if taxpayer has wrongly paid IGST.



    Electronic Ledgers or E-Ledgers are statements of cash and input tax credit in respect of each registered taxpayer. In addition, each taxpayer shall also have an Electronic Tax Liability Register. Once a taxpayer is registered on Common Portal (GSTN), 2 e-ledgers (Cash & Input Tax Credit) and an electronic tax liability register will be automatically opened and displayed on his dashboard at all times.


    1.     Tax Liability Register

    Tax Liability Register will reflect the total tax liability of a taxpayer (after netting) for the particular month. This include tax, interest, late fee or any other amount payable as per the return filed or determined by the proper officer as well as interest payable.


    2.     Cash Ledger

    The cash ledger will reflect all deposits made in cash, and TDS/TCS made on account of the taxpayer. Any amount paid by internet banking / Debit or Credit Card / NEFT or RTGS or payment over the counter will be credited to the Electronic Cash Ledger.


    The information will be reflected on real time basis. This ledger can be used for making any payment on account of GST. This can be used for payment towards tax, interest, penalty, fees or any other amount.


    3.     ITC Ledger

    Input Tax Credit as self-assessed in monthly returns will be reflected in the ITC Ledger. The credit in this ledger can be used to make payment of TAX ONLY and not other amounts such as interest, penalty, fees etc.


    Tax Liability Register


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       Cash Ledger


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                ITC Ledger


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    Tax Liability Register


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    <![endif]> <![endif]-->Rounded Rectangle: Tax Liability Register



                ITC Ledger



         Cash Ledger


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