GST Payments and Appeals

GST payments and appeals refer to the regular settlement of a firm’s outstanding Goods and Services Tax (GST) amount. Complying with GST requirements is crucial for companies, as it ensures adherence to tax regulations. The implementation of the GST regime by the Indian government in 2017 aimed to enhance transparency and standardize the tax system.


    As per tax regulations, authorized standard taxpayers are obligated to pay GST by the 20th of each month. This can be accomplished by filing the GSTR-3B form, which also facilitates reporting of the company’s Income Tax Credit (ITC). Additionally, the current GST return filing procedure involves submitting the GSTR-1 form on a monthly basis to report sales. Tax returns can be claimed by completing the Income Tax Return (ITR) application form.

    Payments to be Made Under GST

    As a taxpayer, it is essential to have a good understanding of the various types of GST payments that need to be made under the GST regime. Here are the details regarding these payments.

    • IGST, also known as Integrated Goods and Services Tax, is levied by the central government when goods and services are transferred between different states.
    • CGST, which stands for Central Goods and Services Tax, encompasses the taxes that were formerly imposed as central indirect taxes. It is levied by the central government on the intra-state movement of goods and services within a particular state.
    • SGST, also known as State Goods and Services Tax, is a type of tax imposed by the state government on intra-state supplies of goods and services. It is collected when goods or services are sold or consumed within the boundaries of a particular state.

    Calculating GST Payments and Appeals

    To begin with, it is important to determine the HSN (Harmonised System of Nomenclature) or SAC (Services Accounting Code) code for the products or services being taxed. This code helps in identifying the applicable GST rate.

    GST on services is charged at five different slabs: 0%, 5%, 12%, 18%, and 28%. By knowing the appropriate HSN or SAC code, you can determine the specific percentage of GST to be levied.

    Here is a step-by-step guide to help you calculate your GST payments and appeals:

    • To calculate the aggregate GST payments and appeals owed by a company to the appropriate governmental entities, the Input Tax Credit (ITC) should be deducted from the external tax liabilities. This helps to determine the net GST amount that needs to be paid. The ITC is the credit that a business can claim for the GST paid on its purchases or expenses, which can be utilized to offset the GST liability. Subtracting the ITC from the tax obligations provides an accurate assessment of the GST payments that need to be made.
    • To calculate the net amount that the business owes, it is necessary to subtract the Tax Deducted at Source (TDS) from the Tax Collected at Source (TCS). TDS refers to the tax amount that has been deducted by the recipient while making payments to the business, whereas TCS represents the tax amount collected by the seller while receiving payment from the buyer. By subtracting TDS from TCS, the net amount payable by the business can be determined after considering the tax deductions and collections made on its behalf.
    • As the final step, any applicable interest and late fines will be added to the calculated amount to arrive at the final value. If there are delays or non-compliance in making GST payments, the relevant authorities may impose interest charges or penalties. These additional amounts need to be added to the calculated value to determine the final GST payment owed by the business. It is important to adhere to the prescribed timelines and fulfill the GST obligations to avoid any potential interest or penalty charges.

    Who Needs to Make GST Payments?

    • GST registered dealers must pay GST if they have any tax liability. Compliance with GST payment requirements is essential to avoid penalties.
    • Registered dealers must also comply with the tax payment obligations under the Reverse Charge Mechanism (RCM). RCM requires the recipient of goods or services to pay the applicable GST directly to the government instead of the supplier. It is the responsibility of registered dealers to understand and fulfill their tax payment obligations under RCM to maintain compliance with the GST regulations.
    • Operators, aggregators, and merchants operating in the e-commerce sector have an additional tax obligation known as Tax Collection at Source (TCS). They are required to collect and remit GST on certain transactions conducted through their platforms. TCS is collected from the buyers at the time of payment and is then paid to the government. E-commerce entities need to ensure compliance with the TCS provisions and accurately collect and remit the required GST amount to the authorities.
    • Dealers are required to deduct Tax Deducted at Source (TDS) when it is deemed appropriate. TDS is applicable in certain cases where specified payments are made, such as rent, commission, professional fees, etc. The dealer is responsible for deducting the prescribed TDS amount from the payment made to the recipient and remitting it to the government within the stipulated time. It is crucial for dealers to comply with TDS provisions and fulfill their obligations to ensure proper tax compliance.

    Options of Making GST Payments and Appeals

    • Dealers have the option to utilize the promptly acquired Input Tax Credit (ITC) to make payments towards GST. However, it is important to note that ITC cannot be utilized for settling interest, penalties, or outstanding late fees. The ITC credit can be redeemed towards the payment of GST liabilities, helping businesses offset their tax obligations. It is crucial to ensure that the ITC is utilized appropriately and in accordance with the prescribed guidelines and restrictions set by the tax authorities.
    • You have the flexibility to make GST payments using either the cash ledger. The payment can be done through online or offline modes. In both cases, it is necessary to generate a GST payment challan on the GST Portal. However, it is important to note that if the tax amount exceeds ₹10,000, dealers are mandated to make the GST payment online. This requirement ensures efficient and secure payment processing, promoting digital transactions in line with the government’s efforts to enhance transparency and streamline the tax system.

    What is a GST Refund?

    Under the GST refund process, registered taxpayers have the opportunity to claim a refund for any excess amount paid if it exceeds their GST obligations. To initiate the refund claim, taxpayers need to file a refund application on the GST portal, providing all the necessary information as per the requirements. The refund application should include details such as the amount to be claimed, supporting documents, and any other relevant information requested by the authorities. Following the submission of the refund application, the tax authorities will process and verify the claim before approving the refund, ensuring compliance and adherence to the refund provisions under GST.

    When Can You Claim GST Refund?

    You can claim GST refunds in various situations, including:

    • Overpayment of taxes due to errors or mistakes in tax calculations.
    • Accumulation of Input Tax Credit (ITC) resulting from the production of tax-free or nil-rated goods or services.
    • Exporters, including those involved in deemed exports, can claim refunds on taxes paid for the purpose of providing goods or services for export, subject to certain conditions.
    • VAT refunds on purchases made by embassies or organizations affiliated with the United Nations (UN).
    • Tax refund provisions for foreign visitors who are eligible for tax refunds on purchases made during their stay in the country.
    • Completion of preliminary certifications or clearances that entitle the taxpayer to claim a refund on taxes paid.

    GST Payment for Different Taxpayers

    The Goods and Services Tax (GST) is a pivotal taxation reform introduced in many countries to streamline the indirect taxation system. Under GST, taxpayers are required to make regular payments based on their transactions and business turnover. This article aims to provide an informative overview of GST payment procedures for different types of taxpayers.

    GST Payment for Regular Businesses

    Regular businesses, often referred to as regular taxpayers, are required to make GST payments based on their taxable supplies and output tax liability. Here’s a step-by-step guide to the GST payment process:

    • Determine Tax Liability – Calculate the total GST liability by subtracting input tax credit from output tax on the supplies made during the tax period.
    • Generate Challan – Generate a GST challan on the GST portal by providing the necessary details and the calculated tax liability.
    • Choose Payment Method – Choose from various payment methods available, such as online banking, NEFT, RTGS, or through authorised GST payment service providers.
    • Make Payment – Initiate the payment using the chosen method and confirm the transaction.
    • Record Transaction – After making the payment, record the transaction details in your books of accounts.

    GST Payment for Composition Scheme Taxpayers

    Composition scheme taxpayers, typically small businesses, have the option to pay GST at a fixed rate based on their turnover. Here’s how they can make GST payments:

    • Calculate Turnover – Determine your turnover for the previous financial year or the current financial year (if applicable).
    • Calculate Tax Liability – Calculate the tax liability by applying the composition rate to the turnover.
    • Generate Challan – Generate a challan with the calculated tax liability details on the GST portal.
    • Choose Payment Method – Select a suitable payment method and complete the transaction.
    • Record Transaction – Record the payment transaction in your financial records.

    Generating e-invoices in GST is a pivotal step toward embracing digital transformation and ensuring compliance with the modern tax regime. By following the step-by-step guide provided above and utilising authorised E-Invoice Service Providers, businesses can streamline their invoicing processes, enhance accuracy, and contribute to a more transparent and efficient GST ecosystem. As GST continues to evolve, mastering e-invoice generation remains essential for seamless financial operations and sustainable business growth.

    GST Payment for Input Service Distributors (ISD)

    Input Service Distributors (ISD) are entities that receive input services and distribute them to their branches. They can distribute input tax credit to their units using the following steps:

    • Determine Eligibility – Ensure you meet the criteria to be classified as an ISD under GST regulations.
    • Distribute Input Tax Credit – Allocate input tax credit to your branches based on their proportionate consumption of input services.
    • Generate ISD Challan – Create an ISD challan on the GST portal for the distributed credit amount.
    • Payment and Recordkeeping – Make the payment using a suitable payment method and maintain accurate records of the transaction.

    In the realm of GST, timely and accurate payment is crucial to maintain compliance and avoid penalties. Different taxpayers have unique procedures to follow, based on their business structure and GST category. By understanding and adhering to these GST payment processes, taxpayers can ensure seamless and lawful transactions within the ambit of the Goods and Services Tax regime. Remember, staying informed and proactive is key to navigating the world of GST payments successfully.

    Which Mode to Choose for Making a GST Payment?

    Making a Goods and Services Tax (GST) payment is a crucial task for every taxpayer. With various payment modes available, it’s essential to choose the one that suits your convenience and requirements. In this informative guide, we will delve into the different modes of GST payment and help you make an informed decision.

    When it comes to GST payments and appeals, there’s no one-size-fits-all solution. Each mode of payment has its advantages and limitations. Consider factors such as your familiarity with digital platforms, transaction security, convenience, and transaction charges before making your decision.

    Ultimately, the goal is to ensure timely and accurate GST payments to avoid penalties and maintain compliance. Choose the payment mode that aligns with your preferences and circumstances, and always stay informed about updates and changes to the GST payment process. By making an informed choice, you can navigate the GST payment landscape confidently and efficiently.

    General Rules for Filing GST Appeals

    Goods and Services Tax (GST) appeals play a crucial role in the taxation framework, providing taxpayers with a mechanism to contest decisions made by tax authorities. Understanding the general rules for filing GST appeals is essential to ensure a seamless and effective process. In this informative guide, we’ll walk you through the fundamental steps and guidelines for filing GST appeals with confidence.

    • Understanding the Appellate Authority: Before diving into the appeal process, it’s vital to identify the appropriate appellate authority. GST appeals are typically filed with the Appellate Authority for Advance Ruling (AAAR) at the state or national level. Ensure you have a clear understanding of which authority holds jurisdiction over your case.
    • Review the Decision: If you disagree with a GST-related decision made by the tax authorities, it’s crucial to review the ruling in detail. Understand the grounds on which the decision was based and gather all relevant documents, correspondence, and evidence to support your appeal.
    • Adherence to Time Limits: Timing is critical when filing GST appeals. Generally, an appeal must be filed within 30 days from the date of the decision you intend to appeal against. Ensure that your appeal is submitted within this timeframe to avoid any potential dismissal due to delays.
    • Preparation of Appeal Statement: Draft a clear and concise appeal statement outlining the facts of the case, the disputed issues, the grounds for disagreement, and the relief sought. Make sure the appeal statement is well-structured and includes all relevant details to present a strong case.
    • Submission of Required Documents: Accurate documentation is essential to substantiate your appeal. Attach all supporting documents, including invoices, contracts, correspondence, and any other relevant records that strengthen your argument. Ensure that the documents are properly organised and referenced within your appeal statement.
    • Engage Professional Assistance: Complex cases might benefit from professional guidance. Consider seeking assistance from tax consultants, legal experts, or professionals experienced in GST matters. Their insights can provide valuable input to strengthen your appeal.
    • Fees and Format: Check the prescribed format for filing GST appeals, as different authorities may have specific requirements. Additionally, verify any applicable fees that need to be paid along with the appeal. Ensure your appeal adheres to the designated format and includes the necessary fee, if any.
    • Stay Updated on Case Status: Once the appeal is filed, keep track of its progress. You may need to attend hearings or provide additional information as requested by the appellate authority. Staying updated ensures you can provide timely responses and cooperation throughout the process.

    Filing GST appeals requires careful consideration, adherence to deadlines, and attention to detail. By following these general rules and guidelines, you can approach the process with confidence, knowing that you have taken the necessary steps to present a compelling case. Remember, the goal of GST appeals is to ensure fairness and accuracy in taxation matters, and a well-prepared appeal can greatly contribute to a successful outcome.

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