Highlights of Report of the Joint Committee on Business Processes for GST on GST Payment Process

Highlights of Report of the Joint Committee on Business Processes for GST on GST Payment Process
  1. Main Features of Proposed Payment Process

  • Electronically generated challan from GSTN Common Portal in all modes of payment and no use of manually prepared challan;

  • Facilitation for the taxpayer by providing hassle free, anytime, anywhere mode of payment of tax;

  • Convenience of making payment online;

  • Logical tax collection data in electronic format;

  • Faster remittance of tax revenue to the Government Account;

  • Paperless transactions;

  • Speedy Accounting and reporting;

  • Electronic reconciliation of all receipts;

  • Simplified procedure for banks;

  • Warehousing of Digital Challan.

  1. Modes of Payment & Workflow

The report proposes following three modes of payment:

  1. E- Payment: This includes Payment by taxpayers through Internet Banking through authorized banks and through credit card/debit card:

  • The Taxpayer will generate e-Challan through GSTN

  • Tax payer will select e-payment mode

  • Net Banking

  • Credit/Debit Card of any bank

  • Tax Payer to choose Authorized bank in case of Net Banking

  • Payment gateway of authorized bank (or their SPVs) in case of Credit Card/ Debit Card

  • Credit Card to be used by taxpayer needs to be preregistered at GSTN. This has been done to bring an additional safety check to eliminate the issue of charge back.

  • GSTN will direct the taxpayer to the website of selected bank/payment gateway

  • After Online Payment a unique CIN will be generated basis which GSTN will credit the Taxpayer’s ledger

  • Copy of paid Challan will be made available on GSTN for taxpayer (downloadable/printable)

II . OTC (Over the Counter)- Tax payer may make the payment of the taxes at the Authorized Bank’s counter. This will be beneficial for smaller taxpayers that do not have access to internet banking facilities.

  • Cash allowed for Maximum Rs 10,000/ Challan

  • The Taxpayer will generate e-Challan through GSTN

  • Taxpayer will approach the branch of the authorized bank for payment of taxes along with the 2 copies of challan and instrument or cash

  • In case of Cash, CIN will be immediately generated and the same will be sent to GSTN on real time basis.

  • In case of other instrument like cheque/ DD etc, the bank will inform GSTN on real time basis in two stages; First when an instrument is given OTC and Second when the cheque is realized.

  • Simultaneously, SMS will be sent to Tax payer when OTC payment is made and when it is realized

III.NEFT/RTGS: New Method of payment of taxes. This process will be beneficial for those taxpayers who do not have a bank account in any of the authorized banks or find such bank to be far away for OTC payment or want to make the payment directly from their account in their own bank only. The payment can be made through any bank.

  • GSTN will generate NEFT/RTGS Mandate Form along with Challan

  • OTC payments through Cheque Only

  • Bank will provide UTR number

  • Upload UTR by logging into GSTN

  • No Restriction is levied on the amount of Payment

  1. Payment at Departmental Counters

The departmental officers will accept the deposit of taxes during the course of enforcement and anti-evasion investigations including by flying squads, etc. While doing so, if the concerned person is not already registered, the departmental officer will create a temporary GSTIN on the GSTN common portal. For this purpose, GSTN will provide a separate module and a GSTIN series for giving temporary GSTIN. The officer will collect the amount in respect of all types of taxes payable by him in cash/cheque/DD from the said person, issue a temporary receipt to him, generate the challan from GSTN, fill up the challan (at a later stage, if not possible at that time) and remit the amount using Mode II. GSTN will provide a facility for linking of the temporary GSTIN to the permanent GSTIN, if taken at a later stage.

  1. Generation of Tax Challan under GST

  • Payment under GST – by taxpayer himself or authorised representative by logging into GSTN.

  • For making payment of GST, taxpayer will be required to access Goods and Services Tax Network (GSTN) for generation of the Challan, where basic details (such as name, address, email, mobile number and GST registration number) of the tax payer will be auto populated in the challan.

  • Upon creation of the draft challan, the taxpayer will fill in the details of the taxes that are to be paid. The challan page will have sets of mandatory fields, which the user has to provide/fill up.

  • The tax payer will have the option to pay CGST, IGST, Additional Tax and SGST concurrently.

  • The tax payers can partially fill in the challan form and temporarily “save” the challan for completion at a later stage. A saved challan can be “edited” before finalization.

  • After the tax payer has finalized the challan, he will generate the challan, for payment of taxes.

  • After the challan is generated, it will be frozen and will not be allowed to be


  • The challan so generated will have a 14-digit (yymm followed by 10-digit) CPIN, assigned only when the challan is finally generated.

  • CPIN will help the portal and other authorities in identifying the challan. The CPIN would be a running serial number to be initialized every calendar month.

The CPIN/ challan so generated would be valid for a period of 7 days. In case of payment through Mode III (i.e. NEFT/RTGS), CPINs would remain live with RBI for a period of 30 days.

Proposed accounting codes under GST:

  • Separate accounting codes are proposed for making payment of CGST, SGST, IGST or Additional Tax.

  • Further, accounting codes will also be provided for interest, penalty, fees or others payments.

RBI to play the role of aggregator:

RBI will play the role of the aggregator for flow of funds as well as information from the banks.

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