Current GST returns filing requires that, after filing GSTR-1 to report sales, one file GSTR-3B to report the ITC and make the necessary GST payment each month.
The tax to be paid under GST is primarily divided into three categories:
IGST: An interstate supply tax that must be paid (paid to the centre)
CGST: To be paid when supplying within the state (paid to the centre)
SGST: To be paid when supplying within the state (paid to the state)
CIRCUMSTANCES GOODS SOLD
from Delhi to Kolkata within Kolkata from Kolkata to Kharagpur
CGST No Yes Yes
SGST No Yes Yes
IGST Yes No No
Aside from the payments listed above, a dealer is required to make the following payments:
Tax Deducted at Source (TDS): TDS is a mechanism that allows the dealer to deduct tax before making a payment to the supplier.
For example, a government agency may award a contract for road construction to a builder. The contract is worth Rs 10 lakh. When the government agency makes a payment to the builder, TDS of 1% (Rs 10,000) is deducted and the remaining amount is paid.
TCS (Tax Collected at Source): e-commerce aggregators primarily use TCS. This means that any dealer selling through e-commerce will be paid after a 2% TCS deduction.
This provision is currently being relaxed and will not apply to notifications made by the government.
Reverse Charge: The responsibility for tax payment is transferred from the supplier of goods and services to the receiver. To learn more about reverse charge, read our article 'Know Everything About Reverse Charge Under GST.'
To calculate the total GST payment, the Input Tax Credit should be subtracted from the Outward Tax Liability.
TDS/TCS will be deducted from the total GST to determine the net payable amount. The final amount will include interest and late fees (if applicable).
Furthermore, ITC cannot be claimed on interest or late fees. Both interest and late fees must be paid in cash. The method of calculation differs depending on the type of dealer:
Regular Vendor: A regular dealer is required to pay GST on his outward supplies and can claim Input Tax Credit (ITC) on his purchases. The difference between the outward tax liability and the ITC is the GST payable by a regular dealer.
Dealer in Composition: A composition dealer's GST payment is comparatively simple. A dealer who has chosen the composition scheme must pay a fixed percentage of GST on all outward supplies. A composition dealer must pay GST based on the nature of his or her business.
These dealers are required to pay GST:
If a registered dealer has GST liability, he or she must pay GST.
Under the Reverse Charge Mechanism, registered dealers are required to pay tax (RCM).
TCS must be collected and paid by the e-commerce operator.
Dealers were required to deduct TDS.
GST payment is due when the GSTR 3 is filed, which is by the 20th of the following month.
GST can be paid in two ways.
Dealers can use their ITC credit to pay their GST. The credit can only be used to pay taxes. ITC cannot be used to pay interest, penalties, or late fees.
GST can be paid online or in person. For both online and offline GST payments, the challan must be generated on the GST Portal. It is mandatory to pay taxes online if the tax liability exceeds Rs 10,000.
If GST is underpaid, unpaid, or paid late, the dealer must pay interest at the rate of 18%. There is also a penalty to be paid. The penalty is the greater than Rs. 10,000 or 10% of the tax is short-paid or unpaid.
Everything you need to know about GST Audit
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