5 Ways to Pay Your GST Online in 5 Easy Steps
The Goods and Services Tax (GST) is a new tax that came into effect on July 1st, 2017.
It subsumes all other local taxes and will be applicable on the majority of goods and services sold in India. However, if you are reading this article, it means you are one of those millions of businesses selling products online.
You now need to know how to make GST online payment in 5 easy steps.
Keeping yourself informed about the latest changes is important so that you can comply with all necessary taxes and regulations. This way, you won’t have any surprises later on. Let’s explore the right steps to pay your GST online:
Check your online GST check:-
The first step towards paying your GST payment is to check your GST registration status. You may have received a tax notification or an invoice.
It is important to first understand the core details of your business such as the type of GST registration you have obtained, the GSTIN number, and the GST due. You may also need to find out what GST rates you will be paying according to the type of your business.
You can check your GST registration status here. Remember, the GST registration date is different for every state. If your business is based in Delhi, your GST date will be July 1st, 2017. However, businesses in Mumbai have a July 1st, 2018 date. While businesses in Kolkata and Chennai are issued a July 1st, 2019 date.
Register for a GST Online Account
You need to register for a GST online account before you can pay your GST online. A. If you are a manufacturer, exporter, or importer, you can register for a GST account online by visiting the GST website.
You will need to fill in the required fields such as your GSTIN and GST Type. B. If you are a service provider, you can also register for a GST account online. C.
If you are a trader, you can register for a GST Login account online. However, you will need to submit a provisional GST return within 30 days of GST implementation. You must also pay a GST deposit amounting to ₹19 lakh per month.
Pay your monthly tax dues
Now that you have registered for a GST online account, you can now pay your monthly tax dues. If you are a manufacturer, exporter, or importer, you must pay an Interim GST. A.
If you are a manufacturer, you will pay an Interim GST at the rate of 5 percent on the total value of goods manufactured. B.
If you are an exporter, you will pay an Interim GST at the rate of 0 percent. C. If you are an importer, you must pay an Interim GST at the rate of 5 percent on the value of the imported goods.
Understand the types of businesses under GST
In addition to understanding the GST registration and paying your monthly tax dues, you also need to understand the types of businesses under GST.
This way, you will understand how much GST you need to pay and when. A. GST rates for Manufacturers: Manufacturers will pay a GST rate of 12 percent on the sale of the final product.
However, they can claim an Input Tax Credit (ITC) on the taxes they have paid while manufacturing the product.
B. GST rates for Service Providers: Service providers will pay a GST rate of 18 percent on the sale of the final product. However, they can claim an ITC on the taxes they have paid while providing the service. C. GST Rates for Traders: Traders will pay a GST rate of 0 percent on the sale of the final product.
However, they cannot claim an ITC on the taxes they have paid while selling the product.
Paying your GST online is an important first step for many businesses. It’s important to remember that you need to register for an online GST account before you can pay your taxes online. Once you’ve done this, you can pay your monthly GST dues and understand the different types of businesses under GST.