TMI BlogGST Payment of TaxX X X X Extracts X X X X X X X X Extracts X X X X ..... mmerce operators through which such services are supplied. Also Government Departments making payments to vendors above a specified limit [2.5 lakh under one contract as per S.51(1)(d) ] are required to deduct tax (TDS) and E-commerce operators are required to collect tax (TCS) on the net value [i.e. aggregate value of taxable supplies of goods and/or services but excluding such value of services on which the operator is made liable to pay GST under Section 9(5) of the CGST Act, 2017 ] of supplies made through them and deposit it with the Government. Q 3. When does liability to pay GST arises? Ans. Liability to pay arises at the time of supply of Goods as explained in Section 12 and at the time of supply of services as explained in Section13. The time is generally the earliest of one of the three events, namely receiving payment, issuance of invoice or completion of supply. Different situations envisaged and different tax points have been explained in the aforesaid sections. Q 4. What are the main features of GST payment process? Ans. The payment processes under GST Act(s) have the following features: Electronically generated challan from GSTN Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 80 of the CGST /SGST Act). Q 8. What happens if the taxable person files the return but does not make payment of tax? Ans. In such cases, the return is not considered as a valid return. Section 2(117) defines a valid return to mean a return furnished under sub-section (1) of section 39 on which self-assessed tax has been paid in full. It is only the valid return that would be used for allowing input tax credit (ITC) to the recipient. In other words, unless the supplier has paid the entire self-assessed tax and filed his return and the recipient has filed his return, the ITC of the recipient would not be confirmed. Q 9. Which date is considered as date of deposit of the tax dues Date of presentation of cheque or Date of payment or Date of credit of amount in the account of government? Ans. It is the date of credit to the Government account. Q 10. What are E-Ledgers? Ans. Electronic Ledgers or E-Ledgers are statements of cash and input tax credit in respect of each registered taxpayer. In addition, each taxpayer shall also have an electronic tax liability register. Once a taxpayer is registered on Common Portal (GSTN), two e-ledgers (Cash Inpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Q 18. What is a CPIN? Ans. CPIN stands for Common Portal Identification Number (CPIN) given at the time of generation of challan. It is a 14-digit unique number to identify the challan. As stated above, the CPIN remains valid for a period of 15 days. Q 19. What is a CIN and what is its relevance? Ans. CIN stands for Challan Identification Number. It is a 17-digit number that is 14-digit CPIN plus 3-digit Bank Code. CIN is generated by the authorized banks/ Reserve Bank of India (RBI) when payment is actually received by such authorized banks or RBI and credited in the relevant government account held with them. It is an indication that the payment has been realized and credited to the appropriate government account. CIN is communicated by the authorized bank to taxpayer as well as to GSTN. Q 20. What is the sequence of payment of tax where that taxpayer has liabilities for previous months also? Ans. Section 49(8) prescribes an order of payment where the taxpayer has tax liability beyond the current return period. In such a situation, the order of payment to be followed is: First self-assessed tax and other dues for the previous period; thereafter self-assessed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 5 days of crediting the TDS to the govt a/c, failing which fees of ₹ 100 per day subject to maximum of ₹ 5000/- will be payable by such deductor. Q 26. What is Tax Collected at Source (TCS)? Ans. This provision is applicable only for E-Commerce Operator under section 52 of CGST /SGST Act. Every ECommerce Operator, not being an agent, needs to withhold an amount calculated at the rate of one percent of the net value of taxable supplies made through it where the consideration with respect to such supplies is to be collected by the operator. Such withheld amount is to be deposited by such E-Commerce Operator to the appropriate GST account by the 10th of the next month. The amount deposited as TCS will be reflected in the electronic cash ledger of the supplier. Q 27. What does the expression Net value of taxable supplies mean? Ans. The expression net value of taxable supplies means the aggregate value of taxable supplies of goods or services, other than services notified under Section 9(5) , made during any month by all registered taxable persons through the operator reduced by the aggregate value of taxable supplies returned to the suppliers du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elief given by the appellate authority or Appellate Tribunal or court and the electronic tax liability register shall be credited accordingly. Q 32. In what manner is the electronic cash ledger be maintained? Ans. The electronic cash ledger is maintained in FORM GST PMT-05 for each person, liable to pay tax, interest, penalty, late fee or any other amount, on the Common Portal for crediting the amount deposited and debiting the payment therefrom towards tax, interest, penalty, fee or any other amount. Q 33. How Credits are made to the Electronic Cash Ledger? Ans. Any person, or a person on his behalf, shall generate a challan in FORM GST PMT-06 on the Common Portal and enter the details of the amount to be deposited by him towards tax, interest, penalty, fees or any other amount. The deposit shall be made through any of the following modes: (i) Internet Banking through authorized banks; (ii) Credit card or Debit card through the authorised bank; (iii) National Electronic Fund Transfer (NeFT) or Real Time Gross Settlement(RTGS) from any bank; (iv) Over the Counter payment (OTC) through authorized banks for deposits up to ten thousand r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r violation of Rule 87(3) of the CGST Rules, 2017 . Q 36. What is the validity period of the challan generated for the purpose of making deposit in the Electronic Credit Ledger at the GST common portal? Ans. The challan in FORM GST PMT-06 generated at the Common Portal shall be valid for a period of fifteen days. Q 37. How can an un-registered person required to make a payment under the provisions of the Act, make a payment? Ans. Any payment required to be made by a person who is not registered under the Act, shall be made on the basis of a temporary identification number generated through the Common Portal. Q 38. What should be done in case the registered person notices some discrepancies in his electronic cash ledger? Ans. A registered person shall, upon noticing any discrepancy in his electronic cash ledger, communicate the same to the officer exercising jurisdiction in the matter, through the Common Portal in FORM GST PMT-04 . Q 39. In case a registered person claims refund of any amount in the electronic cash ledger, how will the process be recorded in the Electronic Cash Ledger? Ans. Where a person has claimed refund of any amount fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... towards payment of State tax and the amount remaining, if any, may be utilised towards payment of integrated tax. But, the input tax credit on account of State tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax; (d) the Union territory tax shall first be utilised towards payment of Union territory tax and the amount remaining, if any, may be utilised towards payment of integrated tax But, the input tax credit on account of Union territory tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax. (e) the central tax shall not be utilised towards payment of State tax or Union territory tax; and (f) the State tax or Union territory tax shall not be utilised towards payment of central tax. Notwithstanding anything contained above, the input tax credit on account of central tax, State tax or Union territory tax shall be utilised towards payment of integrated tax, central tax, State tax or Union territory tax, as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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