GST Payments and Refunds

CGST, SGST, IGST are the three new terms which are introduced under the new tax laws. CGST refers to Central Goods and Service Tax, SGST refers to State Goods and Service Tax, and IGST is the Integrated Goods and Service tax, which would be charged on the inter-state goods/services. Goods/services sold or resold within the state would be liable to pay only CGST and SGST.

 

This table shows the tax liability under different circumstances-

CIRCUMSTANCES

CGST

SGST

IGST

Goods sold from Raipur to Pune

NO

NO

YES

Goods sold within Raipur

YES

YES

NO

Goods sold from Pune to Mumbai

YES

YES

NO

Payment of Tax Uner GST

Currently, companies pay VAT tax on a monthly/quarterly basis depending on the state and their turnover. CST is paid when crossing state borders and it is not allowed as input tax credit under the current tax laws. Excise duty is also levied on the capital goods. GST would subsume all the above-mentioned taxes. Tax payment will be due at the time of supply of goods under GST. As per the updated GST model law “Every deposit made towards tax, interest, penalty, fee or any other amount by a taxable person by internet banking or by using credit/debit cards or National Electronic Fund Transfer or Real Time Gross Settlement or by any other mode, subject to such conditions and restrictions as may be prescribed, shall be credited to the electronic cash ledger (Automatically) of such person to be maintained in the manner as may be prescribed”. It states that the taxpayer can pay the tax due through electronic modes and it will be automatically debited to his electronic cash ledger.

Electronic cash ledger, Electronic input tax credit ledger &  Tax liability ledger have to be maintained by each person registered under GST.

  1. Electronic cash ledgers consist of record data of tax, interest, penalty, fees paid and payment under CGST, SGST, and IGST.
  2. Electronic Input Tax credit ledger consist details of the input tax credit available.
  3. Tax liability ledger consist of any outstanding liability arising out of the regular return, notices, penalties.