Payment of GST (goods and services tax) is done online on the GST portal. You create a GST challan (Form GST PMT-06) and pay through net banking, NEFT/RTGS or another available mode before your return due date. If you run a GST-registered business, paying on time helps you avoid interest and late fees and keeps your business records clean.
This guide explains who needs to pay GST, the due dates, the step-by-step process to pay GST online, how your GST ledgers work and the common mistakes you should avoid.
What Is Payment Of GST And Who Needs To Pay It?
Goods and services tax (GST) is a tax on the supply of goods and services across India. As a registered business, you collect GST on your sales, called output tax. You also pay GST on your business purchases, which you can usually claim back as input tax credit (ITC).
Payment of GST means depositing the tax you owe with the government through the GST portal. In simple terms, the GST you pay in cash is your output tax minus the eligible ITC available to you.
You need to pay GST if you are:
A regular taxpayer registered under goods and services tax, filing GST returns monthly or quarterly
A composition taxpayer, paying tax at the rates notified under the composition scheme
Liable to pay tax under the reverse charge mechanism (RCM) on certain purchases, where you, as the buyer, pay the GST instead of the supplier
Even in a period when you have no tax to pay, you usually still need to file your GST returns. If you are still setting up, keep your GST registration documents ready, because your registration type decides how and when you pay.
Due Dates And GST Payment Status
Your GST payment is linked to the GST returns you file, mainly GSTR-3B. The general due dates are:
Monthly filers: pay by the 20th of the following month. For example, GST for September is due by 20 October, and GST for April must be paid before you file the return for the subsequent period.
Quarterly filers under the QRMP scheme: for the first two months of the quarter, pay through a GST challan (PMT-06) by the 25th of the following month. For the third month, pay along with your quarterly GSTR-3B, which is due on the 22nd or 24th of the month after the quarter, depending on your state.
Composition taxpayers: pay quarterly through Form GST CMP-08, by the 18th of the month after the quarter.
The government can extend or change due dates through notifications. Always check the current due date on your GST portal dashboard before you pay to avoid late payment.
How To Pay GST Online: Step-By-Step Process
Log in to the GST portal (gst.gov.in) with your username and password to access the payment features.
Go to Services > Payments > Create Challan.
Enter the amounts you need to pay under the correct heads: tax, interest, penalty, fee and others, separately for CGST, SGST/UTGST, IGST and cess.
Select the applicable payment mode or e-payment option, then generate the GST challan. The GST portal creates Form GST PMT-06 with a Common Portal Identification Number (CPIN), which stays valid for 15 days.
Click to proceed to the bank or payment page and complete the transaction. Once the bank confirms it, you receive a Challan Identification Number (CIN), which is your proof of payment.
Check your current status in Challan History and Electronic Cash Ledger. The challan details are displayed there, and you can download the challan or receipt in PDF format after tracking.
If the amount is deducted but not reflected, raise a grievance on the GST portal.
Paying the GST challan only deposits money in your cash ledger. Your tax is settled only when you file your GST returns and use that balance against your liability. Save a copy of the challan and payment receipt for your records.
Filing and paying GST regularly also builds a strong financial record for your business. When you need funds for stock or expansion, FlexiLoans makes it easy to get a business loan sanctioned quickly and entirely online, with minimal paperwork and no collateral required, subject to eligibility.
Modes Of GST Payment
When you generate a GST challan, the GST portal shows the applicable payment method on the payment page. The common options to pay GST are:
Net banking: pay directly through an authorised bank. This is the most common and convenient option.
Debit card, credit card or UPI: available where the GST portal offers these modes for your payment.
NEFT or RTGS: pay from any bank using the mandate form generated with the challan. Enter the details exactly as shown on the mandate form, and allow time for the payment to reflect.
Over the counter GST payment: offline GST payments can be made at an authorised bank branch by cash, cheque or demand draft, and require a print of the gst payment challan. For a cash counter GST payment, the limit is generally Rs. 10,000 per challan per tax period.
For larger amounts, net banking or NEFT/RTGS is usually the easiest way to pay GST.
Electronic Cash Ledger Vs Electronic Credit Ledger
Your GST payments and credits are managed through three records on the GST portal:
Electronic Cash Ledger: holds the money you deposit through GST challans. You can use it to pay tax, interest, penalty, late fee and other amounts.
Electronic Credit Ledger: holds your input tax credit. You can use it only to pay output tax, not interest, penalty or late fee.
Electronic Liability Register: shows the amounts you owe for each period.
When you file GSTR-3B, you set off your available ITC against output tax in the order the GST rules require, and pay the balance from your cash ledger. Matching your purchase invoices with GSTR-2B helps you claim the right ITC and reduce the cash you need to pay. You can use the FlexiLoans GST calculator to estimate GST on your invoices.
Interest And Late Fee For Late Payment Of GST
If you miss the due date, late payment increases your tax dues and other charges:
Interest: under Section 50 of the CGST Act, interest of 18% per annum applies on late payment of tax. It runs from the day after the due date until the date of payment, and is generally charged on the unpaid taxes paid in cash.
Late fee: a late fee applies for each day your GST returns are delayed, up to a maximum cap that depends on your turnover. A lower late fee applies to nil returns. The GST portal calculates it when you file.
If you keep delaying payment, you may receive notices, demand orders and recovery action from the tax department. If you receive a notice, respond on time through the GST portal.
How To Make A Voluntary GST Payment (Form DRC-03)
If you find that you underpaid tax for an earlier period, you can pay it voluntarily using Form GST DRC-03:
Log in to the GST portal and go to Services > User Services > My Applications.
Select Intimation of Voluntary Payment – DRC-03 and create a new application.
Choose the cause of payment, such as voluntary payment or payment against a show cause notice, and enter the financial year and tax period.
Enter the tax, interest and penalty amounts, and pay using your cash ledger or credit ledger balance. Remember that ITC can only be used for tax, not interest or penalty.
Submit the form. An acknowledgement is then issued in Form GST DRC-04.
Paying voluntarily before a notice is issued can help you reduce or avoid penalties in many cases. Speak to your Chartered Accountant (CA) before making a large voluntary payment.
Common Mistakes To Avoid In Payment Of GST
Paying under the wrong head: for example, CGST instead of IGST, or tax instead of interest. Money under the wrong head can't be used directly, and moving it requires a transfer through Form GST PMT-09.
Letting the CPIN expire: if you generate a GST challan but don't pay within its validity, you need to create a new one.
Treating the challan as filing: depositing money is not the same as filing your GST returns. Your liability is settled only when you file GSTR-3B.
Not checking payment status: always confirm in challan history that your payment shows as successful and the amount is credited to your cash ledger.
Note: a saved challan may still remain unpaid or pending until the payment is completed.
Not matching invoices with GSTR-2B: this can make you miss eligible ITC and pay more in cash.
Waiting until the last day: heavy GST portal traffic or bank delays can lead to late payment.
Paying from a personal account: using your business bank account keeps your records easier to reconcile.
Why Paying GST On Time Helps Your Business Grow
Paying GST on time does more than help you avoid interest. Your business buyers depend on your GST returns to claim their own input tax credit, so a good filing record makes you a more reliable supplier. It also keeps your accounts clean and makes tax filing easier every year.
Your GST record also matters when you need funding. Digital lenders such as FlexiLoans look at data like GST filings and bank statements when assessing a business loan application. Regular, on-time filings give a clearer picture of how your business is performing.
Good planning helps too. When your working capital is managed well, you can pay GST from regular cash flow without disturbing your daily operations.
If your business has been running for at least a year, FlexiLoans offers collateral-free business loans from ₹50,000 up to ₹50 lakh, with a flexible tenure of 12 to 42 months, for working capital, inventory or expansion. You can apply entirely online and get your loan sanctioned quickly. Check Eligibility today, subject to eligibility and credit assessment.
Conclusion
Payment of GST becomes simple once you know the process: generate your GST challan on the GST portal, pay through a suitable mode, and settle your liability when you file your GST returns. Keep track of your due dates, pay under the correct heads and match your invoices regularly to avoid late payment interest, late fees and notices.
This article is for general information only and is not tax advice. Please check the official GST portal or consult a Chartered Accountant for your specific situation.
FAQs
For monthly filers, the due date is generally the 20th of the following month. Quarterly filers under the QRMP scheme pay by the 25th of the following month for the first two months of the quarter. They then file the quarterly return by the 22nd or 24th, depending on their state.
Yes, you can pay GST after the due date, but late payment attracts interest at 18% per annum on the tax paid late. A late fee also applies for each day your GST returns are delayed. The GST portal calculates these amounts when you file.
Form GST PMT-06 is the GST challan you use to deposit goods and services tax into your Electronic Cash Ledger. When you generate it, you get a CPIN, valid for 15 days. After successful payment, your bank confirms it with a CIN.
You can check your GST payment status without logging in by opening the relevant tracking page on the GST portal, entering the required details such as your CPIN, and then using the search or track option to view the status displayed. From the same page, you may also access challan or payment information and download the receipt, if available. You can also check the updated balance in your Electronic Cash Ledger.
Yes, you can make an over the counter GST payment at an authorised bank branch using your generated challan. However, cash payments are generally allowed only up to ₹10,000 per challan per tax period. For larger amounts, use net banking or NEFT/RTGS.
If you don't pay GST on time, you will owe interest on the unpaid tax and a late fee on delayed GST returns. Continued non-payment can lead to notices, demand orders and recovery action. If you receive a notice, respond promptly and consult your CA.