GST Payment mechanism between GSTN and authorized banks


Procedure Mechanism after paying GST tax in India

 

GST Payment mechanism between GSTN and authorized banksAs we have discussed earlier, GST can be paid by cash at authorized bank, Internet Banking, Debit Card, Credit Card, RTGS or NEFT. Normally the tax payer pays GST as per self-assessment mechanism and has to effect payment at every month before 20th for the previous month’s tax liability. Once after remitting payment by the above mentioned mode of GST payment, how does the remitted amount reaches with government? What is the electronic fund transfer system from authorized bank to Government’s account?

As per GST Law arrangements, there will be real time two-way linkage between the GSTN and the Core Banking Solution (CBS) of the Bank. CPIN is automatically routed to the Bank via electronic string for verification and receiving payment and a challan identification number (CIN) is to automatically sent by the Bank to the Common Portal confirming payment receipt. No manual intervention will be involved in the process by any one including bank cashier or teller or the taxpayer.

Here we have discussed about GST payment mechanism between GSTN and GST authorized banks. Would you like to add more information about GST payment mechanism between GST authorized banks and Goods and Service Tax Network in India? Share below your thoughts about this post.

 

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