GST Payment of Tax :

1. Ease in making payment towards tax and other dues is very important in a country like India. Challenge before the Empowered Committee was to usher in a mechanism of payment which is user friendly and at the same time allows payment through various modes, after utilization of ITC. A seamless payment mechanism has been envisaged.

2. It is noted that under GST regime, some taxes and duties may remain outside the purview of GST and will continue to be collected in the manner prescribed under existing accounting procedures/rules/manuals, etc. This means that two types of challans (one for GST and other for non-GST) will be used and accounted for by the respective Pay and Accounts Offices (PAOs)/State AGs.

3. The payment processes under proposed GST regime have the following features:

a) Electronically generated challan from GSTN Common Portal in all modes of payment and no use of manually prepared challan;

b) Facilitation for the taxpayer by providing hassle free, anytime, anywhere mode of payment of tax;

c) Convenience of making payment online;

d) Logical tax collection data in electronic format;

e) Faster remittance of tax revenue to the Government Account;

f) Paperless transactions;

g) Speedy Accounting and reporting;

h) Electronic reconciliation of all receipts;

i) Simplified procedure for banks;

j) Warehousing of Digital Challan.