Frequently Asked Questions on GST Payment Process

Ashish M. Shaji

06 Apr, 2021

Here, FAQs are prepared relating to GST Payment and rules relating to the same. As we all know GST Returns are required to be filed periodically, and payment is to be made accordingly.

What is the mode of GST Tax Payments?

GST tax payments can be done through:

• Debit of credit ledger of tax payer maintained on the common portal;
• In cash by debit in the cash ledger of the tax payer maintained on the common portal. Money may be deposited in the cash ledger by Internet banking, Credit or debit card, Real Time Gross Settlement or National Electronic Fund Transfer, over the counter payment.

Is pre registration of credit card required in the GSTN portal for the GST payment?

Yes, it’s necessary to pre register the credit card for GST payment with the Common portal maintained on GSTN. GSTN^[1] may also attempt to put a system with banks in verifying the credit card by taking a confirmation from the credit card service provider.

What is CPIN?

CPIN stands for Common Portal Identification Number. It is given at the time of generation of challan. It is a 14 digit unique number to identify the challan. The CPIN remains valid for 15 days period.    

What is CIN?

CIN stands for Challan Identification Number. The 17 digit CIN number is issued after the payment of GST. Every CIN is a 17 digit unique code. It comprises of the 14 digit CPIN with a 3 digit bank code.

What is the linkage between GSTN and Authorized banks?

There would be a real time two way linkage between GSTN and the core banking solution of the bank. CPIN is automatically routed to the bank through electronic string for verification and receiving payment and a CIN is automatically sent by the bank to the common portal confirming payment receipt.

Can a challan generated online be modified?

No. Once the taxpayer logs into GSTN portal for generation of challan, payment particulars should be fed in by the tax payer or his authorized person. He may save the challan midway for updating in future, if required. However, it may be noted that once challan is finalized and CPIN generated, no changes can be made.

What are the main features of GST payment Process?

The main features of GST payment process are as follows:

• Electronically generated challan from GSTN portal and no use of manually prepared challan;
• Hassle free mode of payment of tax;
• Convenience of making payments online;
• Paperless transactions;
• Speedy accounting and reporting;
• Logical tax collection data in electronic format;
• Electronic reconciliation of all receipts;
• Warehousing of digital challan;
• Faster remittance of tax revenue to the Government account.

Read our article: Overview of GST on Advertisement Services and its Taxability