GST – What is GST, Intro, GST Concept, GST Need, Payment, Challan

GST is a value added tax levied on manufacture, sale and consumption of goods and services. GST Provides comprehensive and continuous chain of tax credits from the producer/Service provider up to retail level /Consumer level. Each person will get credit for the taxes paid at earlier stage. The consumer will bear the final tax. Since, only the value added at each stage is taxed under GST, there is no tax on tax or cascading of taxes under GST system. GST does not differentiate between goods and services and thus, the two are taxed at a single rate

What is Goods and Service Tax?

Goods & Service Tax (GST) is the boldest reform of the tax regime after independence. GST replaces the various Indirect Central and State Government Taxes. GST is governed by a GST Council and its Chairman is the Finance Minister of India.

Under GST, goods and services are taxed at the following gst rates – 0%, 5%, 12%, 18% and 28%. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold. In addition a cess of 15% or other rates on top of 28% GST applies on few items like aerated drinks, luxury cars and tobacco products.

Need for GST in India

  • Concept of one nation, one tax, and one market.
  • Compete with global market as many nations are following GST regime
  • Deficiency in earlier indirect tax system:
  • Cenvat credit of excise and service tax is not available to retailer and vat dealers
  • Central excise is includible in value for vat calculation resulting double tax.
  • CST credit is not vatable for dealers.
  • Difficulty in distinguish between goods and services especially in case of intellectual properties, drawings and designs, Restaurant services, software and work contract

GST basic provisions

  • Introduction of GST is biggest indirect tax reform since independence.
  • There is no provision for levy of GST in the Constitution and hence Levy of GST need Constitutional amendment
  • The Constitution amendment Bill 2014 was passed in Lok Sabha on 6th May 2015 and on the Rajya Sabha on 3rd August 2016. The bill was subsequently ratified by more than 50% of State legislatures. Finally, Constitution 101st(Amendment) Act, 2016 received the president assent on 08.09.2016.
  • The central legalisations of GST were passed in parliament and finally received the assent of President on 12th April 2017. State GST laws are also passed by the state legislatures passed and pave way for levy of GST. 

GST Common Portal

  • Common GST Electronic Portal – www.gst.gov.in – a website managed by Goods and Services Network (GSTN) [
  • GSTN is a company incorporated under the provisions of section 8 of the Companies Act, 2013.
  • It has been set by the Government to establish a uniform interface for the tax payer and a common and shared IT infrastructure between the Centre and States.
  • The GST portal is accessible over Internet (by taxpayers and their CAs/Tax Advocates etc.) and Intranet by Tax Officials etc.
  • The portal is one single common portal for all GST related services.
  • The eco-system consists of all stakeholders starting from taxpayer to tax professional to tax officials to GST portal to Banks to accounting authorities.

How can i Pay GST ?

There are 3 modes of payment available to the dealer – Online, Over the Counter (OTC) and through NEFT/RTGS.

How can I pay GST ONLINE?

Customers having Internet Banking Facility (both Retail and Corporate) can make the GST payment online. Customer is to first visit the GST website https://www.gst.gov.in/ and Login to GST portal using his GST Number and password, create the challan, select the e-payment mode and select Dena Bank for online Payment. Tax payer will be redirected to the Dena Bank Internet Banking site. On successful validation of transaction password tax payer will be redirected to the GST portal wherein final status of the transaction will be displayed.

How can I pay GST Over the Counter (OTC)?

Customers who do not have Internet Banking Facility can make the GST payment through any Dena Bank Branch. Customer is to first visit the GST website https://www.gst.gov.in/ and log in to the GST portal using his GST Number and password, create the challan, and select the Over the Counter Mode and select Dena Bank for over the counter payment. Tax payer will receive the provisional challan. Customer is to take the print of the challan and visit his nearest Dena Bank Branch and submit the challan along with tax amount. Amount can be paid through Cash, Transfer or Clearing Cheque. Bank official will process the GST payment and will provide the Final Challan containing the Challan Identification Number (CIN Number). Over the counter payment can be made up to Rs. 10,000/- (Rupees Ten Thousand Only).

How can I pay GST through NEFT/RTGS?

Customers who do not have Internet Banking Facility and wants to make a GST payment of above Rs. 10,000/- (Rupees Ten Thousand) can make the GST through NEFT/RTGS from any Dena Bank branch. Customer is to first visit the GST website https://www.gst.gov.in/ and log in to the GST portal using his GST Number and password, create the challan, select the NEFT/RTGS Mode and select Dena Bank for payment. Tax payer will receive the provisional challan. Customer is to take the print of the challan and visit the nearest Dena Bank Branch and submit the challan along with\the tax amount. Amount can be paid through Cash or Transfer along with NEFT/RTGS Mandate. Bank official will initiate the NEFT/RTGS remittance. Tax payer can generate the final challan from GST portal after settlement of NEFT/RTGS with RBI.

How to generate GST Challan?

GST tax paid challan WILL BE available for generation at THE GST website https://www.gst.gov.in/ under menu Services–>Payments⇒Track Payment Status

What is CIN ?

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 authorized banks or RBI and credited in the relevant government account. It is an indication that the payment has been realized and credited to the appropriate government account.

What is CPIN ?

CPIN stands for Common Portal Identification Number (CPIN) given at the time of generation of challan at GST portal. It is a 14 digit unique number to identify the challan. Validity of the CPIN is 15 days from the generation of the challan.