GST Payments and Refunds

After GSTR 1 and GSTR 2 entered by the seller must install GSTR 3 and make GST Payment. Also, if the refund is required, the same will be done by forming a refund application form.

A. Payments –

1. What are the payments to be made under the GST?

     Under the GST tax is paid mainly divided into 3:-

  • IGST – paid delivery (charged to the centre) is made at the interstate
  • CGST – paid when the supply in the State (Payable to centre)
  • SGST – paid when the supply in the State (Payable to state)
Goods sold from Delhi to Bombay NO NO YES
Goods sold within Bombay YES YES NO
Goods sold from Bombay to Pune YES YES NO

In addition to the above payments, the dealer is obliged to make these payments –

  • Tax withheld at source (TDS) – TDS is a mechanism by which the tax is held at the dealer before making transfer vendor

For example –

A government agency provides a road builder laying contract. The contract is worth Rs 10 lakh.

When a government agency makes a payment the developer TDS @ 1% (equivalent to Rs 10,000) will be deducted and the balance amount will be paid.

  • Tax amount of the source (TDS) – TDS is the mechanism by which the tax is deducted from the dealer before payment is made to the supplierThis provision is currently relaxed and will not be applicable for reporting by the government.
  • Reverse charge – The obligation to pay tax shifts from the supplier of goods and services to the recipient. To find out more about the reverse charge, check out our article “Meet All About Reverse Charge under GST

Reverse Charge under GST

  • Interest, penalties, fees and other payments

2) How to calculate the payment of the GTS to be made?

The way in which the calculation is to be made is different for different types of dealers –

  • Regular Dealer:- The regular dealer is required to pay GST on external supplies made and may require input tax credit (ITC) of the purchases made by them.
  • Composition Dealer:- Payment of GST for the composition of the dealer is relatively simple. Merchant, who chose the layout scheme has to pay a fixed percentage of the total amount of GST on foreign supplies made.

3) Who should make a payment?

These dealers are obliged to make a payment to the GTS –

  • A registered dealer is required to make a GST payment if there is GST liability.
  • A registered dealer is required to pay a tax under the Reverse Recovery Mechanism (RCM).
  • The electronic commerce operator is obliged to collect and pay TCS
  • Dealers demanded the seizure of TDS

4) When should the GTS be paid?

Payment for GST should be made when GSTR 3 is submitted, that is, by the 20th of the next month.

5) What are e-books?

These books are held electronically on the GST portal.


6) How to make a payment to GST?

The fee for GST can be made in 2 ways –

  • Payment through a credit book –

The ITC loan can be taken by dividers for payment to the GTS. The loan can only be taken for a tax payment. Interest, fines and late fees cannot be paid using the ITC.

  • Payment through a Cash Register –

Payment with GST can be made online or offline. The challenge must be generated on the GST portal for online payment and log in.

When the tax liability is more than 10,000 rubles, it is mandatory to pay taxes on the Internet.

7) What is the penalty for non-payment or late payment?

  •  If GST is a short-term, unpaid or paid overdue interest of 18% is required to pay the dealer. Also, the penalty should be paid. The penalty is higher than Rs. 10,000 or 10% of the tax paid or unpaid.

B)  Refund:-

1) What is the return of the GTS?

Usually, when the paid GST is more than the obligation for the GTS, a situation arises in which a return to the GTS is required. According to GST, the recovery request process is standardized to avoid confusion. The process is online and time limits are set for them.

2) When can a return be sought?

There are many cases where recovery may be required. Here are some of them – Excess tax payment is due to error or omission.

  • Export to the dealer (including the fictitious export) of goods/services upon request of a discount or refund
  • ITC accumulation because the exit is exempt from tax or is not calculated with zero
  • Refund of the tax paid for purchases made by UN embassies or bodies
  • Tax refund for international tourists
  • Finalize the provisional assessment

3) How to calculate the GST collection?

Let’s take a simple case of paying surplus taxes.

For Example, Mr B for GST liability for September is RS 50000. But, due to a mistake, Mr B made a GST payment of Rs 5 lakh.

Now Mr B has made an excess payment to the GTS of Rs. 4.5 Lakh which may be required as a refund of it. The deadline for requesting a refund is 2 years from the date of payment.

calculate GST refund

4) What is the time limit for claiming a fee?

The time limit for claiming compensation is 2 years from the relevant date.

The relevant date is different in each case.

Here are the relevant dates for some cases –

Reason for claiming GST Refund Relevant Date
Excess payment of GST Date of payment
Export or deemed export of goods or services Date of despatch/loading/passing the frontier
ITC accumulates as output is tax exempt or nil-rated the Last date of a financial year to which the credit belongs
Finalisation of provisional assessment Date on which tax is adjusted

In addition, if the return delay interest payable 24% GA paid by the government.

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