Time of GST Payment

SECTION : GST Payment of Tax

  • Lesson Objectives

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

    ·          Main features of GST Payment

    ·          Timing of Payment of GST

    ·          Sequence of Payment of Tax

    ·         Interest on Delayed Payment

    ·        Challan for Payment


    Please go through the Second Video of Chapter 7.


    Time of GST Payment

    The time is generally the earliest of one of the three events, namely

    o   Receiving payment,

    o   Issuance of invoice or

    o   Completion of supply.


    In GST Law, there are separate sections for Time of Supply for Goods and Services. Different situations are envisaged and different tax points have been explained in the GST Law.


    Main Features of GST payment process

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

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

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

    • Convenience of making payment online;

    • Logical tax collection data in electronic format;

    • Faster remittance of tax revenue to the Government Account;

    • Paperless transactions;

    • Speedy Accounting and reporting;

    • Electronic reconciliation of all receipts;

    • Simplified procedure for banks;

    • Warehousing of Digital Challan.


    Timing of Payment of GST

    Payment of taxes by the normal taxpayer is to be done on monthly basis by the 20th of the succeeding month. Payment of taxes for the month of April shall be paid by the 20th of May.

    ·        Cash payments will be first deposited in the Cash Ledger.

    ·        Taxpayer shall debit the ledger while making payment in the monthly returns and shall reflect the relevant debit entry number in his return.

    ·        As mentioned earlier, payment can also be debited from the Credit Ledger.

    ·        Timing of payment will be from 0000 Hrs to 2000 Hrs.

    Composition tax payers will need to pay tax on quarterly basis.


    Extension / Monthly Installments

    Extension or Monthly Installments are not allowed in in case of self-assessed liability. In other cases, competent authority has been empowered to extend the time period or allow payment in installments.


    Date of Deposit of Tax

    There may be a confusion that which date to be considered as date of deposit of the tax dues either it is Date of presentation of cheque or Date of payment or Date of credit of amount in the account of government account?


    It is to be noted that the date of credit of tax paid to the Government account will be treated as Date of Deposit of Tax.


    Sequence of Payment of Tax

    Where that taxpayer has liabilities for previous months or whatever case may be there is an order of payment. It applies where the taxpayer has tax liability beyond the current return period.


    In such a situation, the order of payment to be followed is:

    ·        First self-assessed tax and interest for the previous period;

    ·        Thereafter self-assessed tax and interest for the current period;

    ·        And thereafter any other amounts payable including any confirmed demands under section.


    This sequence has to be mandatorily followed.


    Interest on Delayed Payment of Tax

    If any person fails to pay tax or part thereof to the Government with the prescribed period, he should pay interest @ 18% p.a. for the period for which it remains unpaid.


    If a person makes an undue or excess claim of input tax credit or undue or excess reduction in output tax liability, he should pay interest at 24% p.a.



    Challan is used for payment of Taxes or any other amount.

    Taxable Person after logging in to the GST Common Portal can enter details required for making payment. Payment particulars have to be fed in by the tax payer or his authorized person. He can save the Challan midway for future updations.


    Finalization of Challan

    A Taxpayer can partially fill in the challan form and temporarily “save” the challan for completion at a later stage. A saved challan can be “edited” before finalization. However once the challan is finalized and CPIN generated, no further changes can be made to it by the taxpayer.


    After the tax payer has finalized the challan, he will generate the challan for use of payment of taxes. The remitter will have option of printing the challan for his record.


    Validity period of Challan

    A challan will be valid for fifteen days after its generation and thereafter it will be purged from the System. However, the taxpayer can generate another challan at his convenience.



    CPIN stands for Common Portal Identification Number (CPIN) given at the time of generation of challan. It is a 14 digit unique number to identify the challan. It will be generated after finalization of Challan only. The Validity Period of CPIN is 15 days.



    CIN stands for Challan Identification Number.

    It is a 17 digit number that is 14-digit CPIN plus 3-digit Bank Code.

    CIN is generated by the authorized banks/ Reserve Bank of India (RBI) when payment is actually received by such authorized banks or RBI and credited in the relevant government account held with them. It is an indication that the payment has been realized and credited to the appropriate government account.

    CIN is communicated by the authorized bank to taxpayer as well as to GSTN.No manual intervention will be involved in the process by any one including bank cashier or teller or the taxpayer.


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