GST payment online: Step-by-step guide

Imagine a world where paying taxes is as easy as buying your favourite snack online! That’s exactly what the Goods and Services Tax (GST) payment online system does in India. It takes all the complicated old taxes and rolls them into one simple system. The best part? You can pay GST online—quickly, safely, and without hassle.

GST 2.0 has greatly simplified the online payment procedure. Payments can now be completed with a click, and auto-ledger updates guarantee accuracy in records without human intervention. With integration with the GSTN 2.0 portal, your experience is more streamlined.

If you run a small business or dream of owning one, knowing how to pay GST online in India is important. The government has built a digital system to help everyone pay GST online with just a few clicks. Whether you make GST E-Payment regularly, fall under the composition scheme, or are just curious about how it all works, this guide will walk you through everything related to GST payments.

What is GST payment?

Think of goods and service tax payment online like passing a ball—businesses collect tax from customers and then pass it to the government. This unified tax replaced multiple indirect taxes, such as service tax, VAT, and excise duty, simplifying the taxation structure across India. When you buy something, a small part of what you pay goes to the government to help build roads, schools, and hospitals.

To understand GST payment, you should also learn about its three types:

• CGST (for the central government): The CGST is collected by the central government on intra-state sales of goods and services. The revenue generated from CGST helps fund central services, initiatives, and infrastructure development, contributing to the overall economic growth of the country.
• SGST (for states): SGST is levied by the respective state governments on intra-state transactions. The revenue from SGST is directed to the state’s budget and can be used for local development projects, welfare schemes, and other state-level initiatives.
• IGST (for trade between states): IGST is applied to inter-state transactions, where goods or services are supplied from one state to another. It facilitates seamless movement of goods across state borders, ensuring that businesses can operate efficiently while still providing revenue to both state and central authorities.
• Automatic credit adjustment is an important addition to CGST and SGST/IGST balances in GST 2.0. This process improves taxpayer cash flow by efficiently redeploying excess balances.

Businesses can use GST e-payment using the official GST portal or banks. By understanding these components, they can better navigate the tax landscape and its implications on pricing and compliance.

Who should pay GST?

GST should be paid by:

• Businesses with a high turnover: Any business providing goods with an annual turnover exceeding ₹40 lakhs or providing services with a turnover above ₹20 lakhs (₹10 lakhs for special category states) must register for and pay GST online.
  GST 2.0 also modifies exemption limits: ₹50 lakhs for suppliers of goods and ₹25 lakhs for providers of services, providing real relief to small enterprises.
• E-commerce operators and online sellers: Platforms like Amazon and Flipkart, and sellers using such platforms, are required to register for goods and service tax payment online, regardless of turnover. These entities collect tax at source and remit it to the government through the GST e-payment system.
• Casual and non-resident taxable persons: Individuals or entities making occasional taxable supplies in India without a fixed business location (e.g., event-based sellers or foreign service providers) must register and make GST payment online, regardless of turnover.
• Interstate suppliers: Businesses supplying goods or services across state boundaries must register for GST, even if their turnover is below the threshold. They must regularly complete their GST payment online.
• Input service distributors (ISD): Companies with multiple branches can centralise ITC (Input Tax Credit) distribution through an ISD mechanism. These entities are required to make goods and service tax payments online for tax allocation to different units.
• Agents and brokers: Agents who supply goods or services on behalf of others (such as commission agents or brokers) must register for GST and make timely goods and service tax payment online.
• Reverse charge mechanism (RCM) recipients: Businesses or individuals receiving goods or services under RCM must pay the GST instead of the supplier. These recipients must register and complete GST payment online.
• Voluntary registrants: Small businesses below the threshold limit can voluntarily register to avail of ITC and gain business credibility. Once registered, they are required to file returns and make goods and service tax payments online.
• Composition scheme dealers: Small taxpayers with turnover up to ₹1.5 crores (₹75 lakhs for special states) can opt for the composition scheme. Though they pay tax at a fixed rate, they are still required to make quarterly GST e-payments. For composition dealers, in GST 2.0, the rollout facilitates easy quarterly returns with auto-calculated tax, further lessening administrative loads.
• Importers and exporters: Importers pay IGST during customs clearance, which qualifies as GST payment online, while exporters must file returns to claim refunds and stay compliant.

Modes of GST payment

GST payment online can be made through various modes, ensuring ease and flexibility for taxpayers.

• Online payments include Net Banking, Debit/Credit Cards, and UPI/IMPS, offering instant transactions for quick compliance.
• Businesses can also use NEFT/RTGS to transfer funds directly from their bank accounts to the government’s GST e-payment account.
• The launch of the Integrated Payment Module in GST 2.0 enables the payment of tax using any method of choice, such as Net Banking, UPI, NEFT/RTGS, straight from the GST portal, omitting the step for redirection to external banking websites.

Note: For those preferring offline methods, over-the-counter (OTC) payments allow tax payments via cash, cheque, or demand draft (DD) at authorised bank branches.

These diverse payment options ensure that businesses, whether big or small, can conveniently fulfil their tax obligations while staying compliant with GST regulations, avoiding penalties, and contributing to national development.

Axis Bank offers a comprehensive suite of GST E-Payment Services designed to simplify tax compliance for both individuals and businesses. Customers can conveniently make GST payment online through multiple channels, including Internet Banking, NEFT/RTGS, or by visiting a branch. These options ensure flexibility, allowing taxpayers to choose a method that best suits their needs.

GST payment processes for different taxpayers

The GST payment processes for different taxpayers are:

• Regular taxpayers must pay GST monthly via the GST e-payment system.
• Composition scheme dealers pay quarterly using goods and service tax payment online methods.
• Casual and non-resident taxpayers pay in advance through the online portal.
• E-commerce operators collect and pay GST online on behalf of sellers.
• Taxpayers can choose from Net Banking, UPI, or NEFT/RTGS to complete goods and service tax payment online transactions.
• Also, the payment and return filing system has been consolidated in GST 2.0. Information from GSTR-3B and GSTR-1 auto-populates the payment column, thus avoiding duplication of information and making compliance easier.

How to make the GST payment online?

GST payment online is not only easy but also ensures that you stay compliant with tax laws while avoiding penalties. The system offers multiple payment options, such as net banking, debit/credit cards, and UPI, making the process smooth and accessible. Under GST 2.0, payment status updates in real-time and reconciliation with the electronic cash ledger are now mandatory features. ERP tool-enabled businesses enjoy API-based payment integration, enhancing process efficiency.

The GST e-payment system processes online payments immediately, updating your electronic cash ledger in real time. This immediate reflection allows you to utilise the deposited amount for filing returns without delay.

For taxpayers generating challans without logging in, it's essential to complete the payment immediately, as these challans have limited validity.

Online payment through the GST portal

• Credit/Debit Cards: Convenient for smaller payments.
• NEFT/RTGS: For larger transactions with specific processing times.
• UPI: Instant payment option gaining popularity.

NEFT/RTGS from non-authorised banks

• Generate challan on the GST portal.
• Provide details to your bank for processing the payment.
• Receive a Unique Transaction Reference (UTR) number to track the payment.

How to make the GST payment offline?

To make GST payment offline, here's what you must do:

• Generate a challan: Visit the official GST portal, enter your taxpayer details, payment amount, and tax category, and then generate and download the challan securely.
• Choose offline payment: Select 'Over the Counter (OTC)' as the preferred payment mode, allowing you to pay via cash, cheque, or demand draft (DD) at authorised banks.
• Visit your bank: Carry the printed challan to an authorised bank, submit the required payment, and ensure you receive proper acknowledgement from the bank staff.
• Get receipt: The bank will process your GST payment online, issue an official receipt, and update records; always save this for audits, tax filings, or verification.
• Update GST portal: The bank automatically updates the GST payment online status, but you can also log in and verify payment confirmation for assurance.
• To enhance transparency, GST 2.0 requires all payments at over-the-counter of more than ₹10,000 to be made digitally.

How to check GST challan history?

The following steps can help you check GST challan history:

• Log in: Visit www.gst.gov.in, enter your registered username and password, complete the security verification, and access your taxpayer dashboard easily.
• Go to the payment section: Click on ‘Services’ > ‘Payments’ > ‘Challan History’ to navigate to your past payments and view transaction details in one place.
• Enter date/CPIN: Use a specific date range or enter the Common Portal Identification Number (CPIN) to quickly locate your generated GST challan.
• View status: Check whether your challan is paid, pending, or expired, ensuring your payment has been successfully processed without delays or issues.
• Download receipt: Click on your challan reference, download the official payment receipt, and securely store it for audits, tax filings, or future verification.
• Payment dashboard: The system in GST 2.0 also provides a Payment dashboard to monitor challan status, with real-time confirmation and details of refund adjustments.

What is the time restriction to complete the GST payment?

The time restrictions to complete GST payments include

• Challan validity: A generated GST challan remains valid for 15 days from its creation date, after which a new one must be generated.
• Regular taxpayers: Must complete GST payment online by the 20th of the next month to avoid penalties and ensure smooth business operations and compliance.
• Composition dealers: Required to make the payment quarterly by the 18th of the following month, ensuring simplified tax filing for small businesses under the scheme.
• Late payment: Delayed GST payment attracts penalties and interest charges, calculated daily, which increases the financial burden and affects business compliance status significantly.
• Due date considerations: To ensure payments are made within the due date, taxpayers should initiate the transactions before 8 PM on the due date.
• Automated reminders: In GST2.0, automated reminders and a two-day window are now offered for payments that are pending due to bank server malfunction, limiting the chances of unintentional non-compliance.

GST payment due dates for different taxpayers

Type	Payment frequency	Payment due date
Regular taxpayers	Monthly	20th of the following month
Composition scheme dealers	Quarterly	18th of the month after the quarter
Non-resident taxable persons	Monthly (Advance)	20th of the following month
Casual taxable persons	One-time (Advance)	Before starting business
E-commerce operators	Monthly	10th of the following month

Interest on late payment of GST

If you fail to make GST payment online on time, you will have to pay interest. The interest rate is higher if you wrongly claim an extra tax credit or underreport your tax. It is calculated daily from the due date until you make the payment. The longer the delay, the more interest you owe. In GST 2.0, Interest and late fee are auto-calculated at the time of return filing to avoid underpayment mistakes.

To avoid extra costs, it’s best to pay on time and keep track of deadlines. Timely payments help businesses stay compliant and avoid unnecessary financial strain. Always check your tax details carefully to prevent mistakes and additional charges. Making your GST payment online on time ensures smooth business operations and stress-free tax management.

Interest rates

• Standard rate: 18% per annum for delayed payment of GST liability.
• Higher rate: 24% per annum for undue or excess claims of ITC or improper reduction in output tax liability.
• Formula for interest owed = Tax amount × (Interest rate/100) × (Number of days/365)

How to pay GST payments online at a later date?

To pay GST online at a later date, here's what you should do:

• Generate a challan on the GST portal without logging in; it remains valid for 15 days.
• Select a payment method: Net Banking, UPI, NEFT/RTGS, or OTC.
• Save the GST payment challan details (CPIN) for future reference.
• When ready to pay, log in to the GST portal and go to ‘Services’ > ‘Payments’ > ‘Challan History’.
• Locate your challan using the CPIN and proceed to complete the goods and service tax payment online.
• For NEFT/RTGS, submit the challan and remittance form to your bank; track payment using the UTR number.
• Upon successful payment, the electronic cash ledger updates instantly (or within 1-2 days for NEFT/RTGS).
• Delayed GST e-payment after the due date attracts interest charges.

GST payment forms

The various GST payment forms are listed below:

• GST PMT-01: Electronic tax liability register – records all payable tax liabilities.
• GST PMT-02: Electronic credit ledger – tracks ITC claims and usage.
• GST PMT-03: Used to re-credit rejected refund amounts back to the credit ledger.
• GST PMT-04: Enables taxpayers to report discrepancies in the electronic credit ledger.
• GST PMT-05: Electronic cash ledger – shows all cash deposits made towards GST e-payment.
• GST PMT-06: Challan for depositing tax – used for making GST payment through various modes.
• GST PMT-07: Application for redressal – filed when payment is debited but CIN is not generated.
• In GST 2.0, the PMT-09 form is used for fund transfers between major and minor heads, and has been upgraded for instant online adjustment.

Conclusion

Paying GST has become simple and efficient through the digital system in India. To pay GST online, taxpayers must generate a challan on the official GST portal, select a preferred payment mode like Net Banking, UPI, or NEFT/RTGS, and complete the transaction. Understanding how to pay GST online in India ensures timely compliance and avoids penalties.

The GST e-payment process updates the electronic cash ledger in real-time, offering instant confirmation. Regular businesses, composition dealers, and small enterprises can manage their goods and service tax payment online with ease. Embracing GST payment online methods promotes transparency and smooth tax administration.

In total, GST 2.0 streamlines payment and filing processes on a single combined portal. Taxpayers enjoy easier procedures, faster refunds, and integrated payments, a major leap in the GST system.

Frequently Asked Questions

Is it mandatory to make GST payments through the online portal?

No, it is not mandatory to make GST payment online through the portal. You can also pay via NEFT/RTGS or OTC at authorised banks for amounts up to ₹10,000. However, using the online portal is highly recommended due to its speed, real-time updates, and convenience. The goods and service tax payment online system ensures immediate reflection in the electronic cash ledger and reduces delays, errors, or the need for physical visits.

Can I pay GST using UPI?

Yes, UPI is an accepted and convenient option for GST e-payment. When generating a challan on the GST portal, you can select UPI as the payment mode, enter your UPI ID, and complete the transaction securely through your UPI app. It is ideal for small businesses and individuals looking for a quick, cost-effective, and easy way to complete their goods and service tax payment online without needing net banking or card details.

Can I make GST payments after 8 PM?

Yes, you can pay GST online after 8 PM as the portal is accessible 24/7. However, payments made after 8 PM are recorded on the next working day. If you pay on the due date after 8 PM, it may attract interest and late fees. To ensure timely compliance, it’s best to complete your GST payment online before 8 PM on the due date, especially during peak filing periods.

What happens if GST is not paid on time?

Failing to complete your GST payment online on time can lead to serious consequences. You’ll be charged interest at 18% per annum (calculated daily) and may face late filing fees. Delayed payments also risk restriction of Input Tax Credit and penalties. Non-compliance can harm business credibility and invite legal action. Timely goods and service tax payment online is essential to avoid financial strain and ensure smooth business operations.

Disclaimer:This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.

Tax and GST regulations are subject to change. The information in this article is based on applicable laws, rules, notifications, and interpretations in force as on the date of publication and may change due to amendments, judicial decisions, or regulatory updates.