What are payments to be made under GST?
Under GST the tax to be paid is mainly divided into 3 –
IGST – To be paid when interstate supply is made (paid to center)
CGST – To be paid when making supply within the state (paid to center)
SGST – To be paid when making supply within the state (paid to state)
Your business may need to make several types of GST payments, depending on your operations and tax obligations. GST Mitra assists you with each payment type:
Regular GST Payments
Tax Deducted at Source (TDS) – TDS is a mechanism by which tax is deducted by the dealer before making the payment to the supplier
Tax Collected at Source (TCS) – TCS is mainly for e-commerce aggregators. It means that any dealer selling through e-commerce will receive payment after deduction of TCS @ 2%.
Reverse Charge Mechanism (RCM) – Tax payable on purchases or services where you, as the buyer, are responsible for paying GST
GSTMitra ensures that your GST liabilities are calculated accurately and payments are made on time, avoiding interest or late fees.
Advance Tax Payments
If your business is registered as a composition dealer, you are required to make advance GST payments every quarter. GSTMitra helps you calculate your advance tax and make payments well before the due date, ensuring hassle-free compliance.
Late Payment and Penalty Settlement
Missed a payment deadline? GSTMitra assists with calculating and paying any late fees or penalties, minimising the financial impact and helping you get back on track with compliance.
How to calculate the GST payment to be made?
When calculating the total GST payment, the Input Tax Credit (ITC) must first be subtracted from the outward tax liability. After this, any TDS/TCS deductions are applied to determine the net GST payable. If there are any interest or late fees, these will be added to the amount, giving you the final payment figure. It's important to note that ITC cannot be claimed on interest and late fees; both must be paid in cash.
The method for calculating GST payments varies based on the type of dealer:
Regular Dealer
A regular dealer is required to pay GST on all outward supplies but can claim ITC for the purchases made. The GST payable is simply the difference between the outward tax liability and the available ITC, making it a straightforward calculation.
Composition Dealer
For a composition dealer, the GST calculation is more straightforward. Instead of claiming ITC, a composition dealer pays a fixed percentage of GST on their total outward supplies. The percentage to be paid varies depending on the nature of the dealer’s business.
Who should make the payment?
These dealers are required to make GST payment
A Registered dealer is required to make GST payment if GST liability exists.
Registered dealer required to pay tax under Reverse Charge Mechanism(RCM).
E-commerce operator is required to collect and pay TCS
Dealers required deducting TDS
When should GST payment be made?
GST payment is to be made when the GSTR 3 is filed i.e by 20th of the next month.
What is the penalty for non-payment or delayed payment?
If GST is short paid, unpaid or paid late interest at a rate of 18% is required to be paid by the dealer. Also, a penalty to be paid. The penalty is higher of Rs. 10,000 or 10% of the tax short paid or unpaid.
Streamlined GST Payment Process with GST Mitra
Managing GST payments can be overwhelming, but GSTMitra simplifies the process with expert assistance and timely reminders. Here’s how we make GST payments easy:
Liability Calculation: We help you calculate your GST liabilities accurately, ensuring that your payments match the exact amount owed to the government.
Online Payment Submission: GST Mitra guides you through the online payment process on the GST portal, ensuring your payments are submitted correctly.
Payment Tracking: We keep track of your payment status, providing updates and ensuring that every payment is successfully recorded in the GST system.
Reminders and Compliance: Never miss a due date! GST Mitra provides timely reminders so you can avoid penalties and interest for late payments.
Why Choose GST Mitra for Your GST Payments?
With GSTMitra, making your GST payments is quick, simple, and stress-free. We handle the complexities of GST calculations and payments, so you don’t have to. From managing your output GST to ensuring timely advance tax payments, GSTMitra keeps your business compliant and free of penalties. Let us be your trusted partner for all your GST payment needs!
GST Refunds
A GST refund arises when the amount of GST paid exceeds the actual GST liability. To streamline this process and eliminate confusion, the GST refund system is fully standardised, with an online procedure and defined time limits.
When Can You Claim a GST Refund?
There are several instances where you can claim a GST refund. Some common situations include:
Excess GST Payment due to an error or omission.
Exports of Goods/Services, including deemed exports, with a claim of rebate or refund.
Accumulated ITC due to output being tax-exempt or nil-rated.
Refund on Purchases made by Embassies or UN bodies.
Tax Refund for International Tourists on purchases made during their stay.
Finalisation of Provisional Assessments leading to an excess tax payment.
What is the Time Limit for Claiming GST Refunds?
The time limit to claim a GST refund is 2 years from the relevant date, which depends on the reason for the refund. For example, if you've made an excess payment of GST, the relevant date would be the date of payment. In cases of exports or deemed exports of goods or services, the relevant date would be the date of dispatch, loading, or crossing the frontier. For accumulated Input Tax Credit (ITC) due to tax-exempt output, the relevant date is the last day of the financial year in which the credit was earned. Lastly, in the case of the finalization of provisional assessments, the relevant date is when the tax is adjusted.
If the refund is delayed, the government must pay interest at 24% per annum on the amount due, ensuring prompt resolution of your claims. GST Mitra assists you throughout this process, making sure your claims are filed on time and correctly
Why Choose GST Mitra for Your GST Refunds?
At GSTMitra, we make claiming your GST refund fast, hassle-free, and accurate. Our team of experts ensures that your refund applications are filed promptly, following all regulations and avoiding any errors. Whether it’s an excess payment of tax, exports, or ITC accumulation, GSTMitra handles the entire refund process for you, from documentation to submission.
We offer:
Expert Guidance: Our specialists ensure that your refund application is prepared accurately, minimising delays or rejections.
Timely Filing: We help you meet the 2-year deadline for claiming refunds and ensure all relevant dates are considered.
Interest Recovery: If there’s a delay from the government, we assist in claiming the 24% interest on the delayed refund.
Simplified Process: With GSTMitra, everything is managed online, ensuring quick updates and seamless communication.
Let GSTMitra take the stress out of your GST refund process, so you can focus on your business while we handle the paperwork.
FAQs on GST Payments and Refunds
How is GST payment calculated?
GST payment is calculated by subtracting Input Tax Credit (ITC) from the total GST liability on outward supplies. If applicable, TDS/TCS is also reduced, while interest and late fees, if any, are added to determine the final payable amount.
Can I claim ITC on interest and late fees?
No, ITC cannot be claimed on interest and late fees. These must be paid in cash.
How do GST payments differ for Regular and Composition Dealers?
For Regular Dealers, GST is paid on outward supplies after reducing ITC on purchases. Composition Dealers, on the other hand, pay a fixed percentage of GST based on their total outward supplies, without claiming ITC.
What is a GST refund?
A GST refund arises when the GST paid exceeds the GST liability. Refunds can also be claimed in specific cases like exports, excess tax payment, or ITC accumulation.
When can I claim a GST refund?
Refunds can be claimed in cases such as:
Excess payment of tax due to error
Exports (including deemed exports)
Accumulation of ITC on tax-exempt outputs
Tax paid on purchases made by Embassies or UN bodies
Finalization of provisional assessments
What is the time limit for claiming a GST refund?
You can claim a GST refund within 2 years from the relevant date, which varies depending on the situation:
Excess Payment: Date of payment
Exports/Deemed Exports: Date of dispatch/loading/crossing the frontier
Accumulation of ITC: Last day of the financial year in which the credit was earned
Provisional Assessment: Date of tax adjustment
How is interest applied on delayed GST refunds?
If the refund is delayed by the government, an interest of 24% per annum is payable on the delayed amount until the refund is issued.
How do I claim a GST refund?
Refund claims must be filed using Form RFD-01 within 2 years of the relevant date. The application should also be certified by a Chartered Accountant.