Why do we pay GST and how?

GST is an indirect tax that was ruled out in the year 2017, here are the different types of GST in India-:

CGST or Central Goods and Services Tax
SGST or State Goods and Services Tax
IGST or Integrated Goods and Services Tax

Why do we pay GST?

If a taxpayer is registered under GST and has an output tax liability more than input tax liability, then the taxpayer is required to pay the difference amount of GST.

How do I pay GST?

Here are the steps that will help you pay GST without any hassle: -

Step: 1

Step: 2

After you login to go to Services > Payments > Create Challan

Step: 3

Enter the amount and then you are required to select the mode of payment i.e. e-payment, over the counter or NEFT/RTGS. Click on the Generate Challan option once all the details have been filled in.

There are 3 methods of payment here:

Internet banking and debit/ credit cards of authorized banks
Over the counter payment through authorized banks
Payment through NEFT/ RTGS from any bank.

However, there is a limit of Rs. 10,000 per challan, for over the counter payment through authorized banks.

Step: 4

A summary page will appear, that contains all the details of the challan. Select the ‘Mode of Payment’. You can either choose ‘Over the Counter’ to make payment by going to the bank in person or choose ‘E-Payment’, ‘NEFT/ RTGS to make online GST Payment. Click on ‘MAKE PAYMENT’ button.

Step: 5

Make an online payment of GST through Net-Banking or take a printout of the challan and make payment in Bank.

Once the payment is made you will receive a challan with all the details of the tax paid. Thereafter, the tax paid challan (CIN) will be credited to the cash ledger account of the taxpayer.

Do I have to pay GST as a sole trader?

Yes, you are required to pay GST and file GST Return, as a sole trader.

Can same HSN code have different GST rates?

Yes, one HSN code can have multiple GST rates. GST system in India is four-tiered taxation structure, and the are fixed at 5%, 12%, 18%, and 28%.