GST fees (tax liability, interest, or penalties) are paid via the GST Portal by creating a CPIN (Challan) and paying online (Net Banking, UPI, Credit/Debit Card) or offline (NEFT/RTGS, Cash/DD). After logging in, navigate to Services > Payments > Create Challan, enter required amounts, choose a payment method, and complete the transaction to generate a CIN (Challan Identification Number).
How to make the payment post-login on the GST Portal after generating the challan?
The various methods of payment of GST include Net banking, Debit card/credit card, Immediate Payment Services (IMPS) and Unified Payment Interface (UPI). Visit the GST portal. Navigate to Services > Payments > Create challan.
Payment can then be remitted through any of the following modes:
GST can be paid through Internet Banking & Debit/ Credit cards. For payment through Internet Banking: choose Internet banking as payment option. A drop down box detailing names of various authorised banks would be displayed from which you have to choose your preferred bank for Internet Banking.
If the taxpayer is unable to pay GST on time due to some reason, an interest is charged on the GST payment. An interest on late payment of GST is of 18% per annum and will be charged for the days after the due date.
In other words, if an underlying supply is GST-free, the credit card surcharge fee will be GST-free. Conversely, where the underlying supply is a taxable supply, the fee will attract GST. A good example would be the Qantas credit card charge on an airfare booked on the internet.
You can also pay online directly through your online banking service. Set up a payee by looking for “Federal – GST/HST Payment – GST-P (GST-P)” in the payee list. Use your 15-digit business number as your CRA account number. Make the payment the same way you would pay any other bill through your online bank.
Subtracting GST from Price
To calculate how much GST was included in the price, divide the total price by 11 ($1000∕11=$90.91). To calculate the price without GST, divide the price by 1.1 ($1000∕1.1=$909.09).
Section 80 and Rule 158 allow businesses to pay GST dues in installments, which in turn helps them overcome cash flow challenges. Taxpayers are required to apply through the GST portal, submit Form GST DRC-20, and justify their request with the help of financial proof.
The penalty for late GST/HST filing is 1% of any amount you owe, plus an extra 0.25% for each full month your payment is overdue, up to 12 months. If the CRA issues a formal demand to file and you ignore it, they add another $250 penalty even if you don't owe any tax.
The late fee applicable will be automatically calculated by the GST portal while submitting the GST returns. The current month/quarter late fee should be paid when filing the next month/quarter returns. The late fee is paid in cash separately for CGST, and SGST in separate electronic cash ledgers.
If your GST turnover is below the $75,000 threshold, you may choose to register. But if you do, regardless of your turnover, you must: include GST in the price of most goods and services you sell. claim GST credits for most business purchases you make.
Ensure invoices include all mandatory details such as invoice number, date, GSTIN, HSN code, and taxable amount. Use the correct HSN/SAC codes based on the nature of goods/services. Refer to the GST rate schedule. Verify applicable GST rates (e.g., 5%, 12%, 18%, 28%) for the product/service being invoiced.
Common mistakes include issues such as claiming GST on private purchases or failing to use the correct tax codes. By understanding these pitfalls, businesses can refine their record-keeping habits and ensure that they meet their tax obligations effectively.
Payments mandate a GST portal challan; online modes are preferred for amounts over ₹10,000, with 1% cash payment required if monthly turnover exceeds ₹50 lakh for some cases. Late fees apply at ₹200/day (₹100 CGST + ₹100 SGST), and interest at 18% p.a. on delays.
1. Online Payment via GST Portal
When must I collect GST/HST? If your business earns more than $30,000 in gross income (what you earn before you deduct business expenses) during any 12-month period, you must get a GST/HST number and collect GST/HST from your customers.
Pay your GST through the ATO's online portal using BPAY, or a credit or debit card. You can also pay by phone on 1300 898 089, electronic transfer or in person at Australia Post. If you wish, you can make voluntary early payments to offset any future BAS liability.
GST, or Goods and Services Tax, is an indirect tax imposed on the supply of goods and services. It is a multi-stage, destination-oriented tax imposed on every value addition, replacing multiple indirect taxes, including VAT, excise duty, service taxes, etc.
Annual GST/HST Filers (Individuals with December 31 fiscal year-ends) For sole proprietors who are annual GST/HST filers and have a December 31 year-end, the deadline for filing your GST/HST return is June 15. If you owe GST/HST, the balance owed is April 30.
What is the Minimum Turnover Limit for GST Registration? Businesses are required to register for GST and pay tax on their annual turnover if their annual revenue exceeds Rs. 40 lakhs in the case of goods supplied and Rs. 20 lakhs for the supply of services.
Work out your GST-inclusive price by multiplying your original price by 1.1. For example, if your original price is $100, multiply this by 1.1 to equal $110.
All duty and GST will have to be paid in full prior to delivery.