GST payables are required when as a taxpayer you have to make payments for GST. This can be done offline or online on the GST portal. This can be related to GST refunds, filing of returns on a monthly/quarterly basis, or any late fees and interest on GST payables, or any other.

GST challans have to be created for adding funds, post which cash balance payment can be made on your GST payable amount. Let’s take a look at what is GST payable, how to calculate GST payable, how to make payment online, rules, processes, time limit and more.

What is GST payable?

GST payable can be defined as the amount of tax (i.e., Goods and Services Tax) that a business/taxpayer owes to the government. This must be remitted to the government on a timely basis (monthly, quarterly or annually) and is collected via the sale of goods and services to customers.

Taxpayers can make GST payments online and offline in a systematic frequency to stay compliant and avoid GST late fees, penalties and interests. Usually, the cash balance in the electronic cash ledger is used for making online payments or a GST challan can be issued for adding funds to the same.

• Types of taxpayer paying GST: Regular taxpayer, casual taxpayers, taxpayers under the Composition Scheme, non-resident taxpayers, etc.

• Modes of payments for GST: Offline (OTC payments at authorised banks) and online via net banking, NEFT/RTGS, debit/credit cards, etc.

• Instances of GST payables: GST refunds, GST challans, payments on GST notices (e.g., demand notice), monthly/quarterly returns filing, etc.

In the article, you will learn about how to make GST payments with different modes as per your convenience.

GST payable by taxpayers

When it comes to GST payables, the type of taxpayer and the returns they are filing often determine their payable. For instance, in most cases, regular tax-paying businesses will need to file GSTR-1 on a monthly basis and pay any GST or late fees attached to it. On the other hand, taxpayers who have opted for the GST Composition Scheme will have to pay GST quarterly and file one annual return, and casual taxpayers will have to pay taxes based on the duration of their GST registration.

The table below provides an overview of GST payable by taxpayers:

• Regular taxpayers have to file GSTR-1 and GSTR-3B (monthly/quarterly) and GSTR-9 annually reporting their sales and tax liabilities
• Casual taxpayers (seasonal) have to file GSTR-1 and GSTR-3B (monthly) similar to regular taxpayers, based on the timeline of their registration
• Non-resident taxable persons file GSTR-5 on a monthly basis
• Composition Scheme taxpayers pay GST quarterly at a fixed rate (i.e., 1% to 6%) through CMP-08 statement and file one annual return, i.e., GSTR-4
• Input Service Distributors file GSTR-6 (monthly) will details on ITC distribution
• E-Commerce operators collecting TCS file GSTR-8 (monthly) and late fees
• Entities deducting TDS under GST file GSTR-7 (monthly) with details on Tax Deducted at Source (Note: GSTR-7A or TDS Certificate is auto-generated once GSTR-7 is filed)

How to pay GST online?

GST can be paid online on the GST portal or offline via an RBI approved bank. For online GST payments, there must be sufficient cash balance in the electronic cash ledger. If not, a GST challan can be created to add funds to the electronic cash ledger.

Before understanding the process to pay GST online, here’s an overview of the various GST online payment modes and the GST challan creation process.

GST payment online modes:

• Net banking (via RBI approved Agency banks)
• NEFT/RTGF and IMPS (Immediate Payment Services)
• Debit cards
• UPI (Unified Payments Interface)

GST challan creation process:

We have created a separated guide which gives a detailed understanding on GST challans and how to make payment of GST challans.

Steps to pay GST online:

Once you have your GST challan in place and the electronic cash ledged updated with funds, you can proceed to make online GST payments.

In general, for GST return filing payments, you will get the option for GST payable when you are filing returns. All details pertaining to payments (e.g., late fees, interests, etc.) will be present. For instance, when filing GSTR-3B returns, you cannot proceed with the filing process until pending GST payments are cleared.

Here are the steps to follow to make payments:

• Log in to the GST portal using your credentials
• Create Challan using the steps described in the previous section
• Visit the specific Payments section and follow the instructions to complete the payment process
• Download the receipt for your reference

Notes on GST offline payments:

If you want to pay GST offline (including Challan payment) the process is slightly time-consuming, in that you will have to visit a bank to process the payment. Keep the following points in mind:

• Cheque, cash, DD can be used for Over the Counter (OTC) payment

• Downloaded challans with GST payable details must be signed and submitted at the banks

• Maximum amount is limited to ₹10,000 for OTC payment

• For offline NEFT/RTGS, the challan must be submitted to the bank, to get the UTR number (within 2 hours, updated via email and mobile), which the taxpayer must link to their account

• Banks take 2-3 days to process the payment of the challan (Hence, ensure you are generating challans at least 5 days before the due date of payment)

• Offline mode is recommended only when the preferred bank is not on the GST payable authorised bank list

What is the time limit for GST payments?

As a taxpayer, you know that all GST returns have fixed due dates for filing. As such, based on your GSTR form, your time limit for GST payments must be aligned. In case of GST notices (e.g., demand notice) the due date will be specified (it is usually within 20 days).

Keep the following in mind, with reference to the time limit for GST payments:

• Challan timeline: The time limit begins from the time the challan gets generated

• Non-logged in users: For those generating challans without logging in, the process must be completed immediately

• Offline payments: A window of 15 days is available

• NEFT/RTGS offline: A CPIN (challan PIN) is auto-generated when using NEFT/RTGS option which can be used for tracking payments

• Making payments after challan generation: To pay for a challan generated earlier, visit the Challan History section, click on the CPIN of the challan you wish to pay for, and select the preferred bank for making payments via internet banking

• UTR linking for NEFT/RTGS: The UTR number must be linked on the portal by selecting the ‘Link UTR’ option from the Challan History section

• Active payment hours: Though the GST portal can be availed round the clock, active hours for payments are 8:00 a.m. to 8:00 p.m. (i.e., payments made after 8:00 p.m. will be accounted for the next day)

In all of these cases, you can track the status of your challan payment and GST payable status via the GST portal. It is recommended that you log in for convenience, else can do so without logging in. You will need to keep specific details like challan CPIN and your GSTIN with you for generating details.

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Author: Anirban Sinha

A product manager with a writer’s heart, Anirban leverages his 6 years of experience to empower MSMEs in the business and technology sectors. His time at Tata nexarc honed his skills in crafting informative content tailored to MSME needs. Whether wielding words for business or developing innovative products for both Tata Nexarc and MSMEs, his passion for clear communication and a deep understanding of their challenges shine through.