Payment under GST CA. Mukesh Khandelwal

OVERVIEW BACKGROUND, TYPES AND MODES OF PAYMENT ELECTRONIC TAX LIABILITY REGISTER OVERVIEW ELECTRONIC CREDIT LEDGER ELECTRONIC CASH LEDGER TDS and TCS RELATED ISSUES Payment under GST

Payment under GST Who is liable to pay GST? Payment under GST

In general, suppliers of goods or services is liable to pay GST. Payment under GST

However in specified cases like imports, supply by unregistered person and other notified supplies, the liability may arise on the recipient under Reverse Charge Mechanism. Payment under GST

In Intra-state supply of notified services, the liability to pay GST may arise on e-commerce operators through which services are to be supplied. Payment under GST

Government and other specified person making payments to vendors above Rs.2,50,000 under a contract are required to deduct TDS [Section 51(1)] Payment under GST

E-Commerce operators are required to collect TCS on the net value, of the supplies made through them by other suppliers. [Section 52(1)] Payment under GST

When does the liability for GST arises? Payment under GST When does the liability for GST arises? Payment under GST

Liability for GST under forward charge and reverse charge arises at the time of supply of Goods and Services as per Section 12 and Section 13 Payment under GST

What is the order in which tax and other dues should be discharged? Payment under GST

Liabilities under GST should be discharged in following order: self-assessed tax, and other dues related to returns of previous tax periods; self-assessed tax, and other dues related to the return of the current tax period; any other amount [Section 49(8)] Payment under GST

When does the incidence of tax passed on? Payment under GST

On payment of tax by the supplier, the incidence of such tax paid on goods/services is DEEMED to have been passed to the recipient. [Section 49(9)] Payment under GST

What types of payments are to be made under GST? Payment under GST What types of payments are to be made under GST? Payment under GST

Tax (CGST, SGST or IGST) TDS and TCS. Interest Penalty Fees Any other payment Payment under GST

How can the payments be done? Payment under GST

Electronic Cash Ledger Electronic Credit Ledger Payments of Liabilities under GST Through Electronic Cash Ledger Electronic Credit Ledger Payment under GST

ELECTRONIC CASH LEDGER Payment under GST ELECTRONIC CASH LEDGER Electronic Cash Ledger is like an electronic wallet (like PayTM) in which taxpayer has to add money to make any payment under GST. Payment under GST

ELECTRONIC CREDIT LEDGER The input tax credit that is self-assessed in the monthly returns will be reflected here. [Section 49(4)] Payment under GST

What is the due date for payments? Payment under GST

For Normal taxpayers other than Composition 20th of succeeding month For Composition taxpayers 18th from the end of quarter For TDS and TCS 10th Payment under GST

Whether time limit for payment of tax can be extended? Payment under GST

No. This is not permitted in case of self-assessed liability. In other cases, e.g. penalties, etc. competent authority has been empowered to extend the time period. [Section 80] Payment under GST

OVERVIEW BACKGROUND, TYPES AND MODES OF PAYMENT ELECTRONIC TAX LIABILITY REGISTER OVERVIEW ELECTRONIC CREDIT LEDGER ELECTRONIC CASH LEDGER TDS and TCS RELATED ISSUES Payment under GST

What is Electronic Tax Liability Register? Payment under GST

Once a taxpayer is registered on Common Portal (GSTN), an Electronic Tax Liability register will be automatically opened and displayed on his dashboard at all times. Payment under GST

What type of liabilities are debited in Electronic Tax Liability Register? Payment under GST

Tax, interest, late fee or any other amount payable as per the return; Tax, interest, penalty or any other amount payable as determined by a proper officer in pursuance of any proceedings under the Act; Tax and interest payable as a result of mismatch under Section 42 or Section 43 or Section 50; Any other amount of interest. Payment under GST

How Electronic Tax Liability Register will be credited? Payment under GST

By Electronic Credit Ledger By Electronic Cash Ledger By any relief given by Appelate Authority/ Tribunal or court in respect of demand debited in electronic tax liability register. Payment under GST

FORMAT OF ELECTRONIC TAX LIABILITY REGISTER Payment under GST

The electronic tax liability register will be maintained in FORM GST PMT-01. [Rule 1 sub-rule (1)] Payment under GST

FORM GST PMT-01 PART-2 : For other than return related liabilities PART-1 : For Return related liabilities PART-2 : For other than return related liabilities Payment under GST

Payment under GST

In addition to return related liabilities, liabilities (fees) for opting composition, cancellation of registration will also be covered in this part. Payment under GST

Return would be treated as invalid if closing balance of Electronic Tax Liability Register is positive. Payment under GST

The taxpayer would not be able to file return of a tax period if liabilities relating to previous tax period's return are not discharged completely. Payment under GST

Payment under GST

Part - II Reduction or enhancement in the amount due to decision of appeal, rectification, revision, review etc, can be done. The closing balance (+ve or -ve) in this part shall not have any effect on filing of return. Payment under GST

OVERVIEW BACKGROUND, TYPES AND MODES OF PAYMENT Payment under GST BACKGROUND, TYPES AND MODES OF PAYMENT ELECTRONIC TAX LIABILITY REGISTER OVERVIEW ELECTRONIC CREDIT LEDGER ELECTRONIC CASH LEDGER TDS and TCS RELATED ISSUES Payment under GST

What is Electronic Credit Ledger? Payment under GST

Input Tax Credit as self-assessed in monthly returns will be reflected in the Electronic Credit Ledger. Payment under GST

The electronic credit ledger will be maintained in FORM GST PMT-02 The electronic credit ledger will be maintained in FORM GST PMT-02. [Rule 2 sub-rule (1)] Payment under GST

Payment under GST

NO ENTRY shall be made directly in Electronic Credit Ledger under any circumstances.

What type of credits are available in Electronic Credit Ledger? Payment under GST

ITC available at the time of Migration ITC on inward supplies from registered tax payers. ITC from input services distributor. ITC at the time of registration on Input of Stock on the day immediately preceding the date from which the taxpayer became liable to pay tax. ITC on inputs held in stock and inputs contained in semi- finished or finished goods held in stock on the day of conversion from composition scheme to regular tax scheme. ITC eligible on payment made on reverse charge basis. Payment under GST

How Input Tax Credit in Electronic Credit Ledger should be utilized? Payment under GST

Utilization of credit of available IGST is done in which order? CGST then IGST then SGST IGST then CGST then SGST SGST then CGST then IGST CGST then SGST then IGST Payment under GST

Which of the following statements is true? ITC of CGST is first utilized for payment of CGST and the balance is utilized for payment of SGST/UTGST ITC of SGST is first utilized for payment of SGST and the balance is utilized for payment of CGST ITC of CGST is first utilized for payment of CGST and the balance is utilized for payment of IGST None of the Above Payment under GST

The credit in this ledger can be used to make payment of TAX ONLY and not other amounts such as interest, penalty, fees etc. Payment under GST

Is it possible to take refund from Electronic Credit Ledger? Payment under GST

Yes. As per Section 49(6), refund from Electronic Credit Ledger can be taken in accordance with provisions of Section 54. The amount to the extent of such shall be debited in the said ledger. Payment under GST

What if the refund application filed stands rejected? Payment under GST

If the refund so filed is rejected, either fully or partly, the amount debited, to the extent of rejection, shall be re-credited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-3. Payment under GST

Payment under GST

OVERVIEW BACKGROUND, TYPES AND MODES OF PAYMENT ELECTRONIC TAX LIABILITY REGISTER OVERVIEW ELECTRONIC CREDIT LEDGER ELECTRONIC CASH LEDGER TDS and TCS RELATED ISSUES Payment under GST

What is Electronic Cash Ledger? Payment under GST

The Electronic Cash Ledger will serve as an Electronic Wallet The Electronic Cash Ledger will serve as an Electronic Wallet. The taxpayer simply has to add money in this wallet to make any payment under GST. Payment under GST

How to deposit money in Electronic Cash Ledger? Payment under GST

Credit Card or Debit Card of authorized banks NEFT or RTGS Internet Banking Credit Card or Debit Card of authorized banks NEFT or RTGS Over the counter payments upto Rs. 10,000 per challan per tax period (by cash, cheque or demand draft) Payment under GST

Restriction for deposit upto Rs 10,000 does not applies to :- Government Departments or any other person as notified by the Commissioner; Proper officer or any other officer authorised to recover outstanding dues or amount collected during investigation / enforcement activity or any ad hoc deposit; Payment under GST

Where any payment is made by way of NeFT or RTGS, a mandate form shall be generated along with challan and the same shall be submitted to the bank from where the payment is to be made. Payment under GST

What are the major and minor heads of credit in Electronic Cash Ledger? Payment under GST

MAJOR HEADS MINOR HEADS IGST CGST SGST UTGST MINOR HEADS Tax Interest Penalty Any other amount Payment under GST

Is cross utilization permissible among Major Heads in Electronic Cash Ledger? Payment under GST

No, There is no provision in the GST Law Payment under GST

How Electronic Cash Ledger will be maintained? Payment under GST

The electronic cash ledger shall be maintained in FORM GST PMT-05 for each person, liable to pay tax, interest, penalty, late fee or any other amount. Payment under GST

Payment under GST

What is the procedure for payment of GST? Payment under GST

A person shall generate a challan in FORM GST PMT- 06 A person shall generate a challan in FORM GST PMT- 06* on the Common Portal and enter the details of the amount to be deposited by him towards tax, interest, penalty, fees or any other amount *The Challan shall be valid for a period of 15 days. Payment under GST

Payment under GST

What will be the date of credit in Electronic Cash Ledger Payment under GST

The date of credit in Electronic Cash Ledger shall be the date on which CIN is issued. CIN will be issued on the date amount is credited to the Government. Payment under GST

What should be done if no CIN is generated after payment? Payment under GST

The taxpayer shall submit FORM GST PMT-7 electronically through common portal to the Bank or electronic gateway through which deposit was initiated. Payment under GST

Payment under GST

Can Electronic Cash Ledger be credited by any mode other than bank/cash? Payment under GST

Electronic Cash Ledger will be credited under the following cases also: Amount deducted under Section 51 (Tax Deduction at Source) Amount collected under Section 52 (Tax Collection at Source) Amount paid by the department against any interest, refund, penalty, late fee or any other amount determined under the proceedings under this Act Payment under GST

What is Unique Identification Number (UIN) in transactions? Payment under GST

A UIN shall be generated at the Common Portal for each debit or credit to the electronic cash or credit ledger; The UIN relating to discharge of any liability shall be indicated in the corresponding entry in the electronic tax liability register. Payment under GST

Payment under GST

Payment under GST

OVERVIEW BACKGROUND, TYPES AND MODES OF PAYMENT ELECTRONIC TAX LIABILITY REGISTER OVERVIEW ELECTRONIC CREDIT LEDGER ELECTRONIC CASH LEDGER TDS and TCS RELATED ISSUES Payment under GST

Who is liable to deduct TDS? Payment under GST

Governmental agencies; or A department or establishment of the Central Government or State Government; or Local authority; or Governmental agencies; or Such persons or category of persons as may be notified by the Government [Section 51(1)] Payment under GST

When does the liability to deduct TDS arises? Payment under GST

TDS is liable to be deducted when the payment made or credited to the supplier of taxable goods or services or both exceeds Rs. 2,50,000 under a contract. Payment under GST

Provided that… Payment under GST

No deduction shall be made if the location of supplier and the place of supply is in a State/Union territory which is different from the State/Union territory of registration of the recipient. Payment under GST

In what format TDS Certificate should be furnished to deductee? Payment under GST

The Deductor shall furnish a certificate to the Deductee in Form GSTR-7A mentioning therein: the contract value rate of deduction amount deducted amount paid to the appropriate Government and Such other particulars as may be prescribed in this behalf, Payment under GST

This certificate is to be furnished within 5 days of crediting the amount so deducted to the appropriate Government, Payment under GST

Failing which, the Deductor would be liable to pay late fee being Rs Failing which, the Deductor would be liable to pay late fee being Rs. 100 per day during which the failure continues but subject to Maximum of rupees 5000. Payment under GST

Can tax, once deducted, be claimed as refund? Who can claim refund? Payment under GST

Yes. It is possible to claim refund arising on account of excess or erroneous deduction, and this would be governed by the provisions of Section 54. Such refund may be claimed either by the Deductor or the Deductee, but not both. Payment under GST

Further, no refund would be available to the deductor once the amount deducted has been credited to the electronic cash ledger of the deductee. Payment under GST

Who are the persons liable to collect TCS? Payment under GST

E Commerce operator (as defined in Section 2 (45)) is liable to collect the tax at the rate, not exceeding 1% on net value of taxable supply. Payment under GST

What returns are required to be filed by E-Commerce operator? Payment under GST

Tax collecting E-Commerce operator shall use GSTR-8 return to make statement of outward supplies made through him on a monthly basis within 10 days of succeeding month. Payment under GST

In addition, Section 52(5) requires filing of Annual Statement by E Commerce operator on or before 31st December Payment under GST

Details furnished by operator should match with the corresponding details of outward supply of supplier. Discrepancy if any, shall be communicated to both. Payment under GST

If discrepancy is not corrected by supplier, it shall be added to the output tax liability in the succeeding month if value furnished by operator > suppplier Supplier will pay tax with interest on the amount so added. Payment under GST

Information that may be called from operator by way of notice regarding supplies and stock held and managed by such operator on behalf of suppliers shall be submitted within 15 days. Penalty may be levied upto Rs 25000 on failing to do so. Payment under GST

OVERVIEW BACKGROUND, TYPES AND MODES OF PAYMENT ELECTRONIC TAX LIABILITY REGISTER OVERVIEW ELECTRONIC CREDIT LEDGER ELECTRONIC CASH LEDGER TDS and TCS RELATED ISSUES Payment under GST

Is it mandatory to show tax charged in invoice? Payment under GST

Yes. As per Section 33, a person shall always prominently indicate in all documents relating to assessment, tax invoice and other like documents, the amount of tax which shall form part of the price at which such supply is made. Payment under GST

What if a person collects incorrect amount or omits collection of GST in invoice? Payment under GST

It can be rectified in following ways: If tax charged is higher than the prescribed rate. Issue Credit Note As per Section 34(1) If tax is not charged/ less charged than prescribed rate. Issue Debit Note As per Section 34(3) Payment under GST

A person failing to do so shall be liable to pay penalty of Rs 10,000 or tax amount (whichever is higher) as per Section 122(1) Payment under GST

Will receiver get credit if supplier collects tax on higher rate than the prescribed rate? Payment under GST

No provision for blocking of such credit under Section 17 As per Section 16(1) receiver is entitled to take credit on input tax CHARGED. As per Section 2(62), “input tax” means tax charged on any supply of goods or services or both made to him No provision for blocking of such credit under Section 17 Payment under GST

What happens when tax is collected but not paid to government? Payment under GST

As per Section 76(1) every person who has collected GST from any other person is required to deposit it with Government irrespective of whether the supply was taxable or not. Payment under GST

The said person is also required to pay interest on such amount at the rate specified in Section 50 from the date such payment was collected by him to the date the amount is paid to Government. [Section 76(4)] Payment under GST

an amount equivalent to tax collected but not paid to Government A person failing to do so for upto 3 months from the date on which such payment becomes due, shall be liable to pay penalty of :- Rs 10,000, or an amount equivalent to tax collected but not paid to Government (Whichever is higher) [Section 122(1)] Payment under GST

When does the liability for interest arises? Payment under GST

Undue/excess claim of Input Tax Credit Belated payment of tax Undue/excess claim of Input Tax Credit Undue/excess reduction in Output Tax Liability All of the above Payment under GST

Under Section 50 Sub-section (1) : Delay in payment of tax, in full or in part 2. Sub-section (3) : Undue or excess claim of input tax credit under section 42 (10) 3. Sub-section (3) : Undue or excess reduction in output tax liability under section 43 (10) Payment under GST

It may also be recalled that – Section 42 (10) CGST/SGST Act deals with contravention of provisions for matching of claims for input tax credit by a recipient and Section 43 (10) CGST/SGST Act deals with contravention of provisions for matching of claims for reduction in output tax liability by a supplier Payment under GST

What happens when tax is paid on transaction considered as intra-State supply but subsequently held to be an inter-State supply OR vice-versa? Payment under GST

CGST and SGST will be refunded Type of Sale Applicable Tax Actually paid Rectification Interest/ Penalty Section Intra-State CGST and SGST IGST IGST will be refunded. Pay CGST and IGST No 19 of IGST Act Inter-State Pay IGST. CGST and SGST will be refunded 77 of CGST Act Payment under GST

What happens if return is filed without payment of tax? Payment under GST

In such cases, the return is not considered as a valid return In such cases, the return is not considered as a valid return. Section 2(117) provides that the return furnished by a taxable person shall not be treated as valid return unless the full tax due as per the said return has been paid. Payment under GST

No ITC will be allowed to the recipient, unless the tax charged in respect of supply has been actually paid to the Government either in Cash or through utilization of ITC. Payment under GST

How can an unregistered person make payment under GST?

Any payment required to be made by a person who is not registered under the Act, shall be made on the basis of a Temporary Identification Number generated through the Common Portal. [Rule 3 sub-rule (4)] Payment under GST

When an unregistered person is liable to pay GST? Payment under GST

Persons who are granted Unique Identity Number under Section 25(9) :- As per Section 7(1)(b), import of services for a consideration whether or not in the course or furtherance of business Persons who are granted Unique Identity Number under Section 25(9) :- any agency of the UNO, Multilateral Financial Institution, Consulate or Embassy of foreign countries, etc; any other person or class of persons, as notified by the Commissioner Payment under GST

Thank You. Payment under GST