{"id":5076,"date":"2022-11-22T19:05:00","date_gmt":"2022-11-22T13:35:00","guid":{"rendered":"https:\/\/flexiloans.com\/blog\/?p=5076"},"modified":"2025-07-29T11:58:42","modified_gmt":"2025-07-29T06:28:42","slug":"how-to-deal-with-late-payments-under-gst","status":"publish","type":"post","link":"https:\/\/flexiloans.com\/blog\/how-to-deal-with-late-payments-under-gst\/","title":{"rendered":"How to Deal With Late Payments Under GST?"},"content":{"rendered":"\n

Introduction<\/strong><\/h2>\n\n\n\n

The Goods and Services Tax (GST) is an indirect value-added tax applied on most products and services supplied for domestic consumption. A late charge is an amount assessed under the GST Act for late entry of GST returns. GST requires the filing of returns. Even if there is no GST return<\/strong> sum to be paid \u2013 you must submit a NIL GST return<\/strong> within the stipulated time limit.<\/p>\n\n\n\n

When a GST-registered firm fails to submit GST returns<\/a><\/strong> by the stipulated deadlines, a prescribed late charge is levied for each day of delay. You will be charged a per-day late fee if you fail to file your GST\/NIL returns by the deadline.<\/p>\n\n\n\n

You need to pay the GST late charge in cash, and in doing so, you cannot use the Input Tax Credit (ITC) \u2014provided in the electronic credit ledger\u2014 to pay it. The late fine also applies to the non-filing of NIL GST returns.<\/p>\n\n\n\n

Forms related to GST payment<\/strong><\/h2>\n\n\n\n
Form<\/td>Use<\/td><\/tr>
PMT-01 GST<\/td>In this form, an electronic tax bill record is kept.<\/td><\/tr>
PMT-02 GST<\/td>An electronic credit ledger is kept in this form.<\/td><\/tr>
PMT-02 GST<\/td>Order by relevant officials to re-credit money upon refund refusal.<\/td><\/tr>
PMT-04 GST<\/td>Reporting discrepancies in the computerised credit ledger, money ledger, or liability ledger.<\/td><\/tr>
PMT-05 GST<\/td>In this form, an electronic cash ledger is kept.<\/td><\/tr>
PMT-06 GST<\/td>Challan for GST payment.<\/strong><\/td><\/tr>
PMT-07 GST<\/td>This application is used when CIN (Challan Identification Number) isn’t created or sent to the common site.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Four ways to deal with GST payment delays<\/strong><\/h2>\n\n\n\n

1. Control payment defects<\/strong><\/h3>\n\n\n\n

Keeping payment delays under control is the best way to sustain a stable cash flow. You may control cash flow by keeping a record of invoice payments and past-due payments. An e-invoicing system may help you manage your e-invoicing process and keep a record of bills regularly. The second method is to determine how your customers pay so that you may inform them if their payment date has gone. This brings us to the next stage, which is follow-up.<\/p>\n\n\n\n

2. Follow up<\/strong><\/h3>\n\n\n\n

When following up, bear in mind that payments might be delayed for a variety of reasons. Waiting for payments, going via accounting processes, and dealing with regulatory problems are all common issues. When checking back on a past-due pay, you must do it respectfully and properly. You might also offer the following option:<\/p>\n\n\n\n