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OVER THE COUNTER PAYMENT THROUGH AUTHORIZED BANKS

Para 3 - Business Processes for GST - Payment - Goods and Services Tax - Para 3 - II. : 32. Another mode of payment that will be employed in the proposed GST regime will be Over the Counter (OTC) payments which will enable the taxpayers to make payment of the taxes at the Authorized Bank s counter. This will be beneficial for smaller taxpayers that do not have access to internet banking facilities. CCA raised an issue that the authorized banks might be asked as to whether they would be able to s .....

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) e- PAOs of Centre / e-Treasuries of State Governments; f) Pr. CCA, CBEC / Accountant General of the States; g) Tax authorities of Centre and States. Process involved in Over the Counter payment of GST through authorized banks: 34. Every tax payer who wants to avail the facility of OTC payment (only for paying tax upto ₹ 10,000/- per challan), will access GSTN for generation of a challan through which payment is to be made. 35. Upon creation of the draft challan, the taxpayer will fill in .....

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, entry of Instrument details is recommended, but not mandatory, as the taxpayer may not have the instrument ready at the time of challan generation. The tax payers can partially fill in the challan form and temporarily save the challan for completion at a later stage. A saved challan can be edited before finalization. After the tax payer has finalized the challan, he will generate the challan, for use of payment of taxes. The challan so generated will have a Unique Common Portal Identification .....

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essful saving of the challan details, the challan will be available on the dashboard of the taxpayer in downloadable/printable form. So the taxpayer can either download the challan form and print it offline or can print the challan directly from GSTN. If the payment is made by cheque or DD, the challan itself would have a disclaimer that the payment is subject to realization of cheque or DD. 37. Thereafter taxpayer will approach the branch of the authorized bank for payment of taxes along with t .....

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B should maintain a GST pool account so that the tax payer can issue only one instrument which will be written in the name of the GST pool account of the concerned bank. The bank s IT system upon realization of the instrument, will immediately first credit that amount to the GST pool account and then immediately transfer that amount to the respective tax accounts [CGST, IGST, Additional Tax or SGST(39 accounts) as per details in challan (CPIN Data)]. However RBI representatives observed that sin .....

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anks would have to ensure. It was decided that those banks need not operate a GST pool account which can credit the amount in the respective tax accounts on the fly . 38. There should be a linkage between the GSTN and the Core Banking System (CBS) of the authorized banks whereby the details of challan are shared with the Authorized bank selected by the tax payer on real time basis so that they can be stored in the database of banks and also to facilitate the cashier / Teller to verify the detail .....

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an itself or at least CPIN number on normal pay-in-slip to enable the cashier / teller to fetch the challan details in his system. There should be a customized IT application (software) in the bank s system to accept GST receipts on OTC basis. While each branch can accept GST receipts, the credits should always be to the GST accounts maintained and operated by e-FPB . The banks not having such system should not be allowed to accept OTC payments. The minimum requirements to be met by the banks fo .....

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in the GSTN and consequently in the bank s system because it would have been purged from the System by GSTN upon the expiry of the 7 day validity period. 41. The tax payer may make payment by cash or instruments drawn on the same bank or on some other bank in the same city. In case of cash payments or same bank instruments, the payment would be realized immediately and a transaction number (BTR/BRN) and CIN will be generated immediately at the authorized bank s system which will be unique for ea .....

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hould record the BRN and CIN generated from the system, on the tax payer s copy of the challan or pay-in-slip as acknowledgment. 43. In case an instrument drawn on another bank in the same city is presented, the payment would not be realized immediately. In such case, CIN will not be generated immediately, and cashier should write only the system generated acknowledgment number on the challan / pay-in-slip and a stamp to the effect that the acknowledgment by the bank is subject to realization of .....

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o also prevent deduction of commission charges for instruments drawn on another bank in the same city. 45. The Authorized Bank would send the instrument for collection and the transaction would be treated as complete and successful only after the actual receipt of the amount by the said bank. 46. The bank will inform GSTN on real time basis in two stages. First when an instrument is given OTC. At this stage the Authorized bank will forward an electronic string to GSTN which will contain the foll .....

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ara 34 above, GST pool accounts are not required to be maintained by those banks who can credit the amount in the respective tax accounts on the fly ). On the day of realization, it will become a successful transaction to be reported to RBI on T+1 (T = 0 being day of realization). After the successful completion of transaction, the second acknowledgement will have the same details as mentioned in para 46 above with three additional details: a) CIN; b) Date of Realization of Cheque; c) Time of re .....

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tion for a successful transaction as per para 41 above (cash, cheque on same bank or DD) or receipt of the second message from Bank as per para 47 above (cheque drawn on another bank), the tax paid challan will be credited to the tax ledger account of the taxpayer. If the OTC payment was subject to realization (para 46), the initial status on the dashboard will state so. If the cheque is dishonoured, the presenting bank should inform GSTN about the fact of dishonour and same will be informed by .....

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