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Current GST return filing mandates that, after submitting GSTR-1 to record sales, one file GSTR-3B to report the ITC and make the requisite GST payment each month. If a refund is necessary, it can be obtained by completing the appropriate refund paperwork.
Under GST the tax to be paid is mainly divided into 3 –
IGST – To be paid when interstate supply is made (paid to center)
CGST – To be paid when making supply within the state (paid to center)
SGST – To be paid when making supply within the state (paid to state).
Aside from the payments listed above, a dealer is obliged to make the following payments –
*For the moment, this requirement has been eased and will not apply to informed by the government.*
Reverse Charge – The liability of payment of tax shifts from the supplier of goods and services to the receiver.
Interest, Penalty, Fees and other payments
To compute the overall GST payment, the Input Tax Credit should be subtracted from the Outward Tax Liability.
TDS/TCS shall be deducted from total GST to determine the net due amount. The final price will include interest and late fees (if applicable).
Regular Dealer: A regular dealer is liable to pay GST on the outward supplies made and can also claim Input Tax Credit (ITC) on the purchases made by him. The GST payable by a regular dealer is the difference between the outward tax liability and the ITC.
Composition Dealer: The GST payment for a composition dealer is comparatively simpler. A dealer who has opted for composition scheme has to pay a fixed percentage of GST on the total outward supplies made. GST is to be paid based on the type of business of a composition dealer.
If a registered dealer has GST responsibility, he or she must pay GST.
Under the Reverse Charge Mechanism, registered dealers are obligated to pay tax (RCM).
TCS must be collected and paid by the e-commerce operator.
Dealers were obligated to deduct TDS.
GST payment is to be made when the GSTR 3 is filed i.e by 20th of every month.
These ledgers are maintained on the electronically on GST Portal.
GST can be paid in two ways.
Dealers can use their ITC credit to pay their GST. The credit may 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 produced on the GST Portal. It is required 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 must be paid. The penalty is the greater of Rs. 10,000 or 10% of the tax short-paid or unpaid.
What is GST refund?
When the GST paid exceeds the GST due, the circumstance of demanding a GST refund occurs. To eliminate misunderstanding, the method of obtaining a refund under GST is standardised. The procedure is done online, and time constraints have been specified.
There are many cases where refund can be claimed. Here are some of them – Excess payment of tax is made due to mistake or omission.
Consider the basic instance of an overpayment of taxes. For the month of September, Mr. B’s GST due is Rs 50000. Mr. B, on the other hand, made a GST payment of Rs 5 lakh by mistake. Mr. B has now paid an excess GST payment of Rs 4.5 lakh, which he can claim as a refund. The refund must be claimed within two years after the date of payment.
The time limit for claiming a refund is 2 years from relevant date. The relevant date is different in every case. Here are the relevant dates for some cases –
|Reason for claiming GST Refund||Relevant Date|
|Excess payment of GST||Date of payment|
|Export or deemed export of goods or services||Date of despatch/loading/passing the frontier|
|ITC accumulates as output is tax exempt or nil-rated||Last date of financial year to which the credit belongs|
|Finalisation of provisional assessment||Date on which tax is adjusted|
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