The GST Go-Live in India on 1st July, 2017 has led to major structural changes in the functioning of business entities in India.
One of the focus areas of GST is to reduce the friction associated with payment of Taxes to the Government.
The less the friction, the quicker Government gets money into its kitty. As payment of taxis is mandatory for the eligible assesses, they will somehow pay at the last moment too. The advantage of payment of taxes prior to the due date is the availability of funds in the government accounts quickly and also minimise the strain on the system. It is observed that bunching payments on the last date, leads to strain on the system, which in turns increases the stress levels.
Hence, there are multiple options for payment of Taxes due under Goods and Sales Tax Act 2017.
The present payment options of GST are as under:
A) Internet Banking - No Limits
B) Credit/Debit Card – No Limits
A) NEFT/RTGS – No Limits
B) Over the counter – Limit – Rs10,000/- per challan per Tax Period
There are 25 Banks authorised for payment of GST through Net Banking and Over the Counter Payments:
The list is as under: (This list can change in the future)
S. No. List of Authorized Banks for Net Banking and Over the Counter Payments
1. ALLAHABAD BANK
2. ANDHRA BANK
3. BANK OF BARODA
4. DENA BANK
5. BANK OF INDIA
6. CENTRAL BANK OF INDIA
7. CANARA BANK
8. CORPORATION BANK
9. HDFC BANK
10. IDBI BANK
11. ICICI BANK LTD
12. INDIAN BANK
13. INDIAN OVERSEAS BANK
14. BANK OF MAHARASHTRA
15. ORIENTAL BANK OF COMMERCE
16. J & K Bank
17. PUNJAB AND SIND BANK
18. PUNJAB NATIONAL BANK
19. STATE BANK OF INDIA
20. SYNDICATE BANK
21. UNION BANK OF INDIA
22. UCO BANK
23. UNITED BANK OF INDIA
24. AXIS BANK
25. VIJAYA BANK
Payment of GST through Credit Card/Debit Cards is possible. The following are the list of Authorized Payment gateways
S. No. List of Authorized Payment gateways for Credit Card/ Debit Card Payment
1. AXIS BANK
2. BANK OF BARODA
3. HDFC BANK
4. ICICI BANK LTD
5. IDBI BANK
6. INDIAN OVERSEAS BANK
7. PUNJAB NATIONAL BANK
8. STATE BANK OF INDIA
GST registered persons not comfortable with Online Payment mode, can opt for the Offline NEFT/RTGS Payment mode.
The main advantages of Offline RTGS/NEFT Payment Modes are as under:
01) GST can be remitted from Non-Agency Banks.
02) GST can be paid from any bank which offers RTGS/NEFT services.
03) The pre-printed GST Challan containing the complete details has just be handed over to the branch staff where the registered person is having a bank account.
04) The bank account details need not be exposed on the internet.
05) The GST Challans can be handed over to the bank staff by any employee of the registered person. The registered person need not share his/her online banking credentials with anyone.
Third parties can make payments on behalf of the taxpayer. The third party can make payments by mentioning the correct GSTIN against which the payment needs to be made. This is already part of the GST Challan.
Please note the service fee for each payment mode is dependent on the Payment mode service provider. Yes, the service fee will also attract GST!!
It is a very positive step, that there are multiple options to remit the GST. The taxpayer can choose the best option suitable to him/her.
The most important advantage of Online Payments over Offline Payments is that the successful online payment amount is instantly credited to the taxpayer’s Electronic Cash Ledger.
In case of Offline Payments, the tax payment has to be executed in the respective bank, and details populated in the GST network. Obviously this will take time.
National Payments Corporation of India’s(NPCI), Unified Payment Interface (UPI) is the latest digital payment channel in India. The volumes under UPI are on the increase indicating we Indians are comfortable with UPI. Hence, it is disappointing as the taxpayer does not have the UPI Payment option under online mode.
It would be a great booster to UPI, if the ‘Pay through UPI’, is activated in the next couple of months. This will also lead to more awareness of Safe ePayments in India.
01) Press Release August 25, 2016
01)NPCI’s Unified Payments Interface (UPI) set to go live
02) Press Release July 3, 2017 -- NPCI’s UPI crosses 10 million transaction mark in June