Introduction - Payment of Tax, Interest, Penalty and other amount - GST Ready Reckoner - GST

Introduction As per section 9 of CGST Act , the tax is required to be paid on supply of goods or services at the specified rates. The tax is payable by the supplier of goods or services at the specified rates. the tax payable by the supplier of goods or services. The common portal will compute the tax payable by the taxable person on the basis of information of outward supply furnished by him. the tax payable under reverse charge by the taxable person will be computed on the basis of information of outward supply declared by the supplier of such goods or services. Similarly, the amount of tax payable on exports including deemed exports of goods or services will be compute based on the declaration of outward supply In the GST regime, for any intra-state supply, taxes to be paid are the Central GST (CGST), going into the account of the Central Government) and the State/UT GST (SGST, going into the account of the concerned State Government). For any inter-state supply, tax to be paid is Integrated GST (IGST) which will have components of both CGST and SGST. The common portal will compute the tax liability which is required to be paid by the taxable person. Section 49 of CGST Act makes provision for payment of tax, interest, penalty and other amounts. Section 50 of CGST Act provides for payment of interest on delayed payment of tax. Section 51 of CGST Act pertains to tax deduction at source whereas section 52 of CGST Act pertains to collection of tax at source. Lastly section 53 of CGST Act pertains to transfer of input tax credit. Concept pertaining to E-liability ledger, E-cash ledger E-credit ledger which the taxpayer can see on their dashboard once the login to GSTN portal will also be discussed in detail in this chapter. Who is liable to pay of GST Following Person are liable to pay GST the supplier of goods or services is liable to pay under GST. imports and other notified supplies, the liability may be cast on the recipient under the reverse charge mechanism. intra-state supply of services, the liability to pay GST may be cast on e-commerce operators through which such services are supplied. Government Departments making payments to vendors above a specified limit [2.5 lakh under one contract as per Saction 51(1)(d) of CGST Act] are required to deduct tax (TDS) and E-commerce operators are required to collect tax (TCS) on the net value on which the operator is made liable to pay GST under Section 9(5) of the CGST Act, 2017 of supplies made through them and deposit it with the Government. Determination of time of liability of payment of GST arise Liability to pay arises at the time of supply of Goods as explained in Section 12 of CGST Act and at the time of supply of services as explained in Section13. of CGST Act. The time is generally the earliest of one of the three events, namely receiving payment, issuance of invoice or completion of supply. Different situations envisaged and different tax points have been explained in the aforesaid sections. Main features of GST payment process The payment processes under GST Act(s) have the following features: Electronically generated challan from GSTN Common Portal in all modes of payment and no use of manually prepared challan; Facilitation for the tax payer by providing 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; Speedy Accounting and reporting; Electronic reconciliation of all receipts; Simplified procedure for banks Warehousing of Digital Challan.