All listed taxpayer should create GST payment and furnish GST returns on a monthly basis. The small and medium businesses with annual mixture turnover up to Rs. 1.5 crores file quarterly returns and pay taxes solely on a quarterly basis, ranging from the third quarter of this year i.e. October-December, 2020. Hiring a GST consultant in Chennai will help the Taxpayer with GST payment and file returns before the date to avoid interest, penalty, fees, etc. The GST registered taxpayer needs to check and make all adjustments and calculate the Input Tax Credit, the remaining balance if any is supposed to pay the government online.
How to calculate the Input tax credit to make GST payment?
Let us look at a small example to know how to calculate the ITC deduction to make GST payment. A taxpayer ended intra-state sales of Rs. 1, 00,000 in October, and composed CGST of Rs. 2,500 and SGST of Rs. 2,500 at the rate of 5%. The same month, he made a purchase for Rs. 80,000 and compensated Rs. 2000 each under CGST and SGST at a rate of 5%. Additionally a miscellaneous bill of Rs.1, 000 paid for which GST is Rs. 180. So the total is Rs. 4,180 is permitted as a deduction from the Gross tax billed of Rs. 5,000. Hence a remaining of Rs. 820 is outstanding for the government. In simple terms, Input Tax Credit means the deduction of any GST paid through the purchase of goods or any services from the sales overall. The calculation part may be tougher sometimes, so you may look after a GST consultant in Chennai to make this in a simple way.
Accountable to make GST payment
- An E-commerce trader who is registered under the GST and reported supplies made is liable to make GST payment.
- The registered taxpayer who is mandatory to deduct the tax TDS option is liable to make GST payment.
- The E-commerce trader which is essential to collect TCS is also liable to make GST payment.
- All taxpayers who are making taxable supplies are accountable to make GST payment.
Follow the step by step procedure to make GST payment
- Login the GST portal https://www.gst.gov.in/ , enter your user name and password.
2. Under the option bar Select the Services tab>>>Payments>>Create challan.
3. Please fill all the required fields which is mandatory with the correct amount details and also you need to select the payment mode i.e. through E-payment, over the counter or NEFT/RTGS. Once all the details got filled and payment mode selected click the GENERATE CHALLAN option.
To make you more clearly on the payment modes, find the short reason
E-payment – The taxpayer can make GST payment through net banking using his Debit or Credit cards of the authorized banks.
Over the counter – It is very easy and simple option for a average taxpayer, were he can make payment through nearby authorized banks.
NEFT/RTGS – this method is a similar to the e-payment, instead of card way it goes through the selected time slot.Now the system will summarize all the details we entered and pop up the review page were the payment mode need to be confirmed and now CLICK on the MAKE PAYMENT.
4. The taxpayer opportune to make the payment online or to take this challan printout and make a payment over the counter in Bank.
5. Once the payment is made the taxpayer will receive an acknowledgment challan with the tax details paid. This will be simultaneously endorsed in the cash ledger account of the taxpayer.
To conclude, the GST portal is an excellent basis of information for all your requirement and GST payments. Our GST consultants in Chennai will help navigate you to the correct ending and to make payment as per your convenience. To help you even more easily you can approach the GST consultant in Phoenix tax services to get things done from GST registration in Chennai to accounting and filing GST before time.
To know more about GST registration for Branches