IntelliGST

1: What is the Payments structure in GST regime?

Under GST regime, there are three taxes to be paid under the heading of CGST, SGST/ UTGST or IGST depending on status of supply. Additionally, there are certain categories of persons who are required to pay to the government on account of Tax deducted at source or Tax collected at source. In addition to this, Interest, Penalty, Fees and any other payment will also be required to be made as applicable under the various provisions of GST Act.

2: How to determine which category viz. CGST, SGST/UTGST and IGST is applicable?

In case, there is supply within the state or union territory, it shall be considered as intra- state supply and CGST and SGST or UTGST, as the case may be applicable, shall be levied.

In case, there is supply involving two or more states or union territories, it shall be considered as inter- state supply and IGST shall be levied.

3: Who is liable to pay GST?

Every person who is registered under the act is liable to make payment for taxable supplies. However, in case of unregistered supplier, recipient of supply shall be liable to make payment under reverse charge basis. Additionally, in specified transactions third party to the supply is responsible for making payment such as e-commerce operator.

4: What is the time period for making GST payment on taxable supplies?

As per section 12 and 13 of CGST Act, 2017, the liability to make payment of tax depends on time of supply of goods or services or both.

5: What are the main characteristics of GST payment process?

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

There is electronically generated challan from GSTN Common Portal and eliminating use of manually prepared challan;
Facilitation for the taxpayer as electronic mode of payment provides 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;
Electronic reconciliation of all receipts;
Simplified procedure for banks.

6: What are E-Ledgers?

Electronic Ledgers (E-Ledgers) are statements specifying the details of cash and input tax credit in respect of each registered taxpayer. In addition to this, there will be an electronic tax liability register. On registration under the Act, there will be two e-ledgers viz. cash and credit ledger and one electronic tax liability register, which will be automatically opened and displayed on dashboard, of registered person, at all times.

7: How the payment shall be credited and where Input tax credit as available, be visible to taxpayer?

The payment so made by taxpayer shall be credited to the electronic cash ledger of such person, shall be maintained in Form GST PMT-05 and the input tax credit as self-assessed in the return of a registered person shall be credited to his electronic credit ledger, which shall be maintained in Form GST PMT-02

8: Where taxpayer can utilize the amount as available in electronic cash ledger?

The amount available in the electronic cash ledger may be used for making any payment towards tax, interest, penalty, fees or any other amount payable under the provisions of this Act.

9: Is there any mechanism through which unregistered person can also make the payment?

In case, person who is not registered, under the Act, is required to make any payment, it shall be made on the basis of a temporary identification number generated through the common portal.

10: What is meant by Cross-utilization of credit and how is it done in the Electronic Credit Ledger?

Cross utilization means utilizing IGST/ CGST/ SGST/ UTGST liabilities against Electronic Credit Ledger under IGST/ CGST/ SGST/ UTGST Act.

11: How the amount available under electronic credit ledger of taxpayer shall be utilized?

As per section 45 (5) of CGST Act, 2017, the electronic credit ledger of the registered person, reflecting the amount of input tax credit available, shall be utilised in following ways:

(a) In case IGST is available, it shall first be utilised towards payment of IGST and the balance amount may be utilised towards the payment of CGST and SGST/UTGST.

(b) In case of CGST, it shall first be utilised towards payment of CGST and the balance amount may be utilised towards the payment of IGST;

c) In case of SGST, it shall first be utilised towards payment of SGST and the balance amount may be utilised towards the payment of IGST;

(d) In case of UTGST, it shall first be utilised towards payment of UTGST and the balance amount may be utilised towards the payment of IGST;

(e) The CGST shall not be utilised towards payment of SGST or UTGST; and

(f) The SGST or UTGST shall not be utilised towards payment of CGST.

12: How taxpayer can utilize the amount as available in electronic credit ledger?

The amount available in the electronic credit ledger may be used for making any payment to set off output tax liability.

13: What is the treatment to amount lying balance in the electronic cash or credit ledger after payment of tax, interest, penalty, fee or any other amount payable under this Act?

As per section 49 (6) of CGST Act, 2017, the balance amount lying in the electronic cash or credit ledger after payment of tax, interest, penalty, fee or any other amount payable under this Act may be refunded in accordance with the other provisions of Act such as section 54.

14: What is the use of electronic liability register?

Ans14. As per sub- section (7) of section 49 of CGST Act, 2017 read with Rule 85 of CGST Rules, 2017, all liabilities of a taxable person under GST Act shall be recorded and maintained in an electronic liability register in Form GST PMT-01.

15: Is there any sequence of discharging the tax liability?

Ans15. As per section 49 (8) of CGST Act, 2017, every taxable person shall discharge his tax and other dues under GST Act in the following sequence:

(a) First discharge self-assessed tax, and other dues which are related to returns of previous tax periods;

(b) Secondly, self-assessed tax, and other dues related to the return of the current tax period shall be discharged.

(c) At last, any other amount payable under GST Act including the demand, if any shall be set off.

16: In case of any discrepancy in electronic liability register, how registered person communicate the same to authority?

As per sub- rule 7 of Rule 85 of CGST Rules, 2017, in case of any discrepancy in his electronic liability ledger, a registered person shall communicate the same, in Form GST PMT-04 through the common portal, to the officer exercising jurisdiction in the matter.

17: What will be the consequence where person liable to make payment fails to make payment?

As per section 50 (1) of CGST Act, 2017, every person who is liable to pay tax but fails to pay the same within the stipulated time period, shall be liable to pay interest of 18% for the period for which the tax or any part thereof remains unpaid.

18: What is the time period for which interest shall be paid?

The interest shall be computed for the period commencing from the day succeeding the due day of payment of tax.

19: State the cases where taxable person becomes liable for payment of interest?

Following are the cases where interest may be paid by taxpayer:

When there is delay in payment of tax, in full or in part.
When taxpayer claims Undue or excess of input tax credit
When there is Undue or excess reduction in output tax liability

20: What is TDS?

TDS is acronym of Tax Deducted at Source (TDS). As per section 51 of CGST Act, 2017, this provision is meant for Government and Government undertakings and other entities as notified by government who makes contractual payments and total value of such supply under a contract exceeds Rs. 2.5 Lakhs to suppliers. While making any payments under such contracts, the concerned Government/authority shall deduct 2% of the total payment made and remit it into the appropriate GST account.

21: Who are the ‘persons’ who can deduct tax at source under Section 51 of CGST Act?

The following persons are liable to deduct tax:

(a) A department or establishment of the Central or State Government,

(b) Local authority,

(c) Governmental agencies,

(d) Such persons or category of persons as may be notified, by the Central or a State Government on the recommendations of the Council.

22: What is the rate of tax deduction at source?

The prescribed rate of tax to be deducted at source is a 1% from the payment made or credited to the supplier of taxable goods or services or both.

23: What is the time limit for remittance of the deducted tax by the deductor into the credit of the Government?

As per section 51 (2) of CGST Act, 2017, the amount deducted shall be paid to the credit of the Government by the deductor within ten days after the end of the month in which such deduction is made.

24: After deducting TDS, whether deductor will give any acknowledgement to deductee?

After deducting TDS under section 51 of CGST Act, 2017, the deductor shall furnish a certificate, in Form GSTR-7A whereby contract value, rate of deduction, amount deducted, amount paid to the appropriate Government shall be mentioned.

25: What is the time period within which certificate shall be issued by deductor?

The certificate in Form GSTR- 7A is to be furnished within five days of crediting the amount so deducted to the appropriate Government. In case Deductor fails to furnish the same within 5days, he shall be liable to pay late fee of Rs. 100/- per day during which the failure continues but subject to Maximum of rupees 5000.

26: How deductee will claim credit of the TDS amount as deducted by the Deductor?

Yes, the Deductee can claim credit of the tax deducted, in his electronic cash ledger.

27: What will be consequence where deductor fails to pay the amount so deducted to government?

As per section 51 (6) of CGST Act, 2017, where any deductor fails to pay to the Government the amount of TDS, he shall be liable to pay interest in addition to the amount of tax deducted.

28: Can tax, once deducted under section 51 of CGST Act, 2017, be claimed as a refund?

Yes, in case of excess or erroneous deduction, it is possible to claim refund. It may be claimed either by the Deductor or the Deductee, but not by both. Further, no refund would be available to the Deductor once the amount deducted has been credited to the electronic cash ledger of the Deductee

29: What is Tax Collected at Source (TCS)?

As per section 52 of CGST Act, 2017, every e- commerce operator shall collect an amount at the rate not exceeding one per cent of the “net value of taxable supplies” made through it where the consideration with respect to such supplies is to be collected by the operator.

30: What do you mean by expression “net value of taxable supplies”?

As per the explanation to section 52 of CGST Act, 2017, the expression “net value of taxable supplies” shall mean the aggregate value of taxable supplies of goods or services or both, made during any month by all registered persons through the operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month. However, it shall exclude services notified under section 9 (5) of CGST Act, 2017.

31: Who are the ‘persons’ liable to make collection of tax under Section 52 of CGST Act, 2017?

E- Commerce operator is the person to collect the tax on net value of taxable supply made through his e- commerce platform.

32: What is the time period within which tax collected by e- commerce operator shall be deposited to government?

As per section 52 (3) of CGST Act, 2017, the amount collected by E- Commerce operator as TCS shall be paid to the Government by the operator within ten days after the end of the month in which such collection is made.

33: Whether Input tax credit is available to actual suppliers making supplies through e-commerce?

Yes, the ITC is available to actual suppliers who are making taxable supplies through e-commerce. The amount of TCS, as deposited by the operator to the government will be reflected in the cash ledger of the actual registered supplier on the basis of the statement filed by the operator. Such amount can be used at the time of discharge of tax liability in respect of the supplies by the actual supplier.

34: Whether e-commerce operator is required to submit any monthly statement?

Yes, every e-commerce operator is required to furnish a statement in Form GSTR 8, electronically. It shall contain the details of outward supplies of goods or services effected through it, including the supplies of goods or services returned through it, and the amount collected by it as TCS during a month within ten days after the end of such month

35: Whether e-commerce operator is required to submit any annual statement?

Yes, the operator is also required to file an annual statement, in Form GSTR 9B, by 31st day of December following the end of the financial year in which the tax was collected.

36: What is E challan?

. E Challan is the challan generated through GSTN portal. The dealer has to enter his challan details in the portal and take the print out of the challan for payment of GST.

37: Specify the methodology of payments through which taxpayer can pay their tax?

As per section 49 of CGST Act, 2017, following are the modes which taxpayers can use to make payments under GST:

a) By use of Internet Banking

b) By using credit or debit cards;

c) Payment through NEFT/RTGS

d) Over the Counter payment through authorised banks for deposits up to ten thousand rupees per challan per tax period, by cash, cheque or demand draft.

38: Is there any exceptional category of persons who are allowed to deposit more than ten thousand rupees per challan through Over the Counter payment?

Yes, as per proviso to Rule 87 (3) of CGST Rules, 2017, following are the persons who are allowed to deposit more than ten thousand rupees per challan through Over the Counter payment:

Government Departments or any other deposit to be made by persons as may be notified by the Commissioner in this behalf;
Proper officer or any other officer authorised to recover outstanding dues from any person, whether registered or not, including recovery made through attachment or sale of movable or immovable properties;
Proper officer or any other officer authorised for the amounts collected by way of cash, cheque or demand draft during any investigation or enforcement activity or any ad hoc deposit.

39: How to make payment through NEFT or RTGS under GST regime?

Where the payment is made by way of National Electronic Fund Transfer (NEFT) or Real Time Gross Settlement (RTGS) mode from any bank, the mandate form shall be generated along with the challan on the common portal. Thereafter, the person making payment shall submit both, mandate form and challan, to the bank from where the payment is to be made. It is important to note that the mandate form shall be valid for a period of fifteen days from the date of generation of challan.

40: Whether pre-registration, of credit card, is required on the GSTN portal for making the GST payment?

Yes, the taxpayer shall register his credit card, from which the tax payment is intended, before making payment, on GSTN common portal.

41: What is the process for over the counter payment of GST through authorized banks?

In case, tax payer wants to make payment through OTC payment, he will generate challan on GSTN portal. On creation of the challan, the taxpayer will fill in the details of the taxes that are to be paid. From the available payment options, the taxpayer would select option of cheque, DD or cash based payment. The name of the authorized bank and its location (city/town/village) where the instrument/cash is to be presented is required to be filled in necessarily. No outstation cheques are to be accepted except those which are payable at par at all branches of bank having presence at that location. The challan so generated will have a Unique Common Portal Identification Number (CPIN), assigned only when the challan is finally generated, that will help the portal and other authorities in identifying the challan. GSTN will inform the challan details including validity period to the CBS (Core Banking System) of the selected bank on a real time basis.

42: What will be the payment date in case payment is made through Cheque/ Demand Draft?

In case payment is made through cheques or demand draft, the date of realization of amount will be considered as the date of payment.

43: Whether taxpayer receives any acknowledgement on successful credit of the payment to government?

Yes. On successful credit of the amount to the concerned government account maintained in the authorised bank, a Challan Identification Number (CIN) shall be generated by the collecting bank and the same shall be indicated in the challan.

44: What is a CIN and what is its relevance?

CIN stands for Challan Identification Number. It is a 17 digit number where 14-digits reflect CPIN and next 3-digit reflect Bank Code. CIN is generated by the authorized banks/ Reserve Bank of India (RBI) on successful receipt of payment by such authorized banks or RBI. 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.

45: Can the dealer generate challan in multiple sittings?

Yes, the tax payers have option to partially fill the challan form and “save” the challan temporarily and can be completed at a later stage. A saved challan can be “edited” before finalization. On finalization of the challan, the taxpayer will generate the challan, so as to make payment of taxes. The option of printing the challan for record is also available.

46: What is CPIN?

The challan so generated will have a 14 digits Unique Common Portal Identification Number (CPIN), which is assigned only when the challan is finally generated, this will help the portal and other authorities in identifying the challan. The CPIN would be a running serial number to be initialized every calendar month. After the challan is generated, it will be frozen and will not be allowed to be modified.

47: Is there any validity for Common Portal Identification Number (CPIN) number?

The CPIN so generated would be valid for a period of seven days. In case of payment through NEFT/RTGS, CPINs would remain live with RBI for a period of 30 days.

48: What is an E-FPB?

E-FPB stands for Electronic Focal Point Branch. These are branches of authorized banks which are authorized to collect payment of GST. Each authorized bank will nominate only one branch as its E-FPB for pan India Transactions. The E-FPB will have to open accounts under each major head for all governments. Total 38 accounts (one each for CGST, IGST and one each for SGST for each State/UT Govt.) will have to be opened. Any amount received by such E-FPB towards GST will be credited to the appropriate account held by such E-FPB. For NEFT/RTGS Transactions, RBI will act as E-FPB.