February 25, 2023

CGST Rules: Chapter 9 – Payment of Tax

Small and medium business owners and startup founders in India need to be well-versed with the CGST Rules Chapter 9: Payment of Tax and Identification number for each transaction. In this article, we will provide a detailed analysis of this chapter and its implications for businesses in India.

Understanding CGST Rules Chapter 9

CGST Rules Chapter 9 lays down the rules and regulations for payment of tax under the GST regime. It also outlines the requirement for a unique identification number for each transaction, which is known as the Invoice Reference Number (IRN).

As per the rules, every registered person who supplies goods or services must issue an invoice. The invoice should contain a unique identification number that is generated by the Invoice Registration Portal (IRP) after uploading the invoice details. The unique identification number is known as the IRN.

The purpose of the IRN is to ensure that each invoice is unique and can be traced easily in case of any discrepancies. It also helps in preventing tax evasion and ensures that transactions are recorded accurately.

Payment of Tax under CGST Rules Chapter 9

When it comes to payment of tax, every registered person is required to pay tax on a monthly basis. The tax liability can be paid using the electronic cash ledger or electronic credit ledger. Electronic cash ledger is used for making payments for tax, interest, penalty or any other amount payable. Whereas, electronic credit ledger is used for making payments for input tax credit or any other amount refundable.

It is mandatory for businesses to file their returns on a monthly basis. The return comprises two parts – outward supplies made by the registered person and inward supplies received by them. The return must be filed by the 20th of every month.

Benefits of CGST Rules Chapter 9

By complying with the CGST Rules Chapter 9, businesses can enjoy the following benefits:

  • Accuracy: By issuing invoices with a unique identification number, businesses can ensure that their transactions are recorded accurately.
  • Transparency: The use of IRN ensures transparency in the transactions and helps in preventing tax evasion.
  • Compliance: By filing their returns on a monthly basis and paying their taxes regularly, businesses can remain compliant with the GST regime.


CGST Rules Chapter 9: Payment of Tax and Identification number for each transaction is an important chapter for small and medium business owners and startup founders in India. By understanding the rules and complying with them, businesses can ensure accuracy, transparency and compliance.

It is imperative for businesses to keep themselves updated with the latest rules and regulations related to GST. This will help them in avoiding penalties and legal issues in the long run.


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