Introduction:
Goods and Services Tax (GST) is India’s comprehensive indirect tax reform that has streamlined the taxation system for businesses. One of the key responsibilities under GST is timely GST payment. Whether you are a regular taxpayer, composition dealer, or input service distributor, understanding the payment process is essential for staying compliant.
In this blog, we’ll walk you through everything you need to know about GST payments in India: types of payments, challan generation, online vs offline modes, due dates, penalties, and more.
📌 What is GST Payment?
GST payment Fresh to the amount pprice a registered tax-payer must pay to the gov. in the form of tax Liability. It includes:-
- CGST: Central GST
- SGST: State GST
- IGST: Integrated GST
- Cess: Compensation Cess (for Luxury/sin goods)
🗂️ Components of Payment GST :
- Tax Liability:- Collected on outward supplies
- Interest:- For late payment of GST
- Penalty:- For non-compliance or evasion
- Late Fees:- For filing GST returns late
- Others:- Any miscellaneous dues under GST
📅 GST Payment Due Date:-
The payment GST is linked with the filing of returns GST:-
| Type of Return | Description | Due Date |
| G.STR-3B | Monthly summary return | 20th of next month (Regular) |
| G.STR-1 | Sales return | 11th of next month |
| C.MP-08 | Quarterly filing return for composition dealers | 18th month after quarter end |
🔔 Note: Late GST payment attracts interest @ 18% p.a. and late fee of ₹50/day (₹20/day if NIL return).
💻 How to Pay GST Online?
GST payment can be made via the GST Portal using either the electronic cash ledger or via bank transfers.
Step-by-Step Process:
- Login to www.gst.gov.in
- Navigate to Services > Payments > Create Challan
- Fill in details:
- GSTIN
- Amount under heads (CGST/SGST/IGST/Cess)
- Interest, late fee (if any)
- Select Mode of Payment:
- Net Banking
- NEFT/RTGS
- Over the Counter (OTC)
- Click on Generate Challan
- Make payment using the preferred mode
- Success GST payment gets re-flected in Electronic Cash Ledger/book
💳 Modes of GST Payment:
| Mode | Description | Limit |
| Online (Net Banking) | Instant payment | No limit |
| NEFT/RTGS | From any bank | UTR to be updated manually |
| Over-the-Counter (OTC) | At bank branches | Max ₹10,000 per challan/day |
✅ UPI, Credit Cards, and Debit Cards are also allowed through selected banks on the GST portal.
📄 What is a GST Challan?
A GST Challan (Form GST PMT-06) is a document generated for paying tax, interest, penalties, etc., under GST. It’s mandatory for any payment into the government’s treasury.
Key Details in Challan:
- CPIN (Common Portal Identification Number)
- GSTIN
- Payment heads
- Mode of payment
- Validity: 15 days from generation
🧾 GST Payment Ledger System:
GST uses a three-ledger system to manage transactions:
- Electronic Liability Ledger (ECL) – Shows total tax liability
- Electronic Cash Ledger (ECL) – Shows cash available for tax payments
- Electronic Credit Ledger (ECL) – Shows ITC (gst-availability) for tax officers
💡 Tax must first be paid using available ITC; the rest is paid using the cash ledger.
🔁 Set-Off Order for GST Payment:
When you make payment, it follows a set-off order:
- Interest
- Penalty
- Late Fee
- Tax
And ITC can be used only in the following order:
- IGST → IGST, then CGST, then SGST
- CGST → CGST, then IGST
- SGST → SGST, then IGST
- (No cross-utilization of CGST and SGST)
🚫 What Happens If You Miss GST Payment?
Failing to pay GST on time leads to:
- Interest: 18% per annum
- Late fee: ₹50 per day (₹20 for NIL GST returns)
- Restriction on filing next return
- Legal notice & penalty under Section 73 or 74 of the CGST Act Gov.
📊 GST Payment for Composition Scheme:
Composition taxpayers need to:
- File CMP-08 quarterly
- Tax Pay 1% (traders), 5% (restaurants), 6% (service providers) Gst
💡 No ITC available under the composition scheme.
🧠 Pro Tips for Easy GST Compliance:
- Use Accounting Software like Zoho Books, Tally, or ClearTax to auto-generate challans.
- Set Reminders before due dates.
- Track ITC and ensure timely reconciliations.
- Keep Payment Receipts for audit purposes.
- Consult a CA if in doubt about penalties or interest calculations.
❓ Frequently Asked Questions (FAQs):
Q1. Can I pay GST in cash?
No. Cash payments are not allowed directly. You must generate a challan and pay via OTC (limited to ₹10,000), NEFT/RTGS, or Net Banking.
Q2. What is CPIN in GST?
CPIN (Common Portal Identification Number) is a 14-digit reference number generated when a challan is created. It is required to track the payment.
Q3. Can I use a credit card to pay GST service?
Yes, some banks on the GST portal allow GST payment via debit/credit card or UPI.
Q4. How to check GST payment status?
Login to the GST portal → Services → Payments → Track Payment Status using CPIN or Challan.
Q5. What happens if challan expires?
A GST challan is valid for 15 days. After that, it must be re-generated for payment.
Q6. Is GST payment required if no sales occurred?
If you have no tax liability but are registered, you must file NIL returns. Late filing attracts late fees.
🧾 Conclusion:
Paying GST on time is not just a legal requirement—it ensures your business stays compliant and avoids penalties. With the government’s easy online portal and multiple modes of payment, GST compliance has become more accessible.
Whether you are a startup, SME, or large enterprise, understanding GST payment rules, due dates, and payment process is crucial to running your business smoothly in 2025 and beyond.
