What Happens When You Don’t Make GST Payments?
The non-filers of GST returns stood at approximately 20% in December 2019. Businesses with less than Rs. 1.5 crore annually have to file their returns quarterly, while companies with higher revenue than Rs. 1.5 crore have to submit GSTR-1 forms monthly. Due dates for filing such returns are not uniform and thus change every month. Information regarding the due dates is available on the official website of the GST Council.
To streamline the process, many businesses are turning to software for GST billing that simplifies the filing of returns. Such software for GST billing not only helps in timely submissions but also accurate record-keeping. For businesses with high turnovers, using software for GST billing ensures that monthly GSTR-1 forms are filed without delays. Smaller enterprises also benefit from using software for GST billing, especially when they only need to file quarterly returns. The software for GST billing helps track the changing due dates, making it easier for businesses to stay compliant.
Missed the due date with software for GST billing?
Businesses looking to improve efficiency should consider software for GST billing, as software for GST billing automates tax calculations, ensures accuracy, and reduces manual errors. With software for GST billing, companies can easily manage their invoices, track payments, and stay compliant with GST regulations. The right software for GST billing simplifies the entire process, saving both time and effort. Ultimately, adopting software for GST billing is a smart investment for any business looking to streamline its tax processes.
Delays in GST payments lead to penalties. GST levied on a manufactured product can be of three types: Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), and Integrated Goods and Services Tax (IGST). CGST and SGST are imposed on intra-state supplies, while IGST is paid for inter-state supplies.
Fines for GST non-compliance:
For delays in GST return filing, a late fee of Rs. 100 per day is imposed under CGST and SGST, respectively. For IGST, late fines rise to Rs. 200 per day. The maximum amount collected as late fees is restricted to Rs. 5,000 by the central government, even if the total fine is higher.
Here are the fines for non-payment for nil return filers:
For CGST and SGST, the fine accumulation is Rs. 50 per day. For IGST, the fine payable is Rs. 100 per day.
You can make all due GST payments to avoid any penalties. Filing GST online gives you several advantages, for instance, lower input tax credits, which increases the average sales and revenue of a company.
The requirements for GST payments:
If a business wants to enjoy the GST benefits like increased overall revenue due to the elimination of cascading effects, GST payments should be made timely without any delay. As per the GST information issued by CBIC, a business has to make GST payments before the due date every month and simultaneously file its return.
Timely GST payments also enable companies to avail loans for improved efficiency. These loans come with attractive features and are available for easy repayments.
Rules for GST payment:
According to GST payment rules, without furnishing the return and paying the taxes due for a month, the subsequent month’s return cannot be furnished. Also, if the tax due is not paid, interest will be applied on the same, starting from the GST payment due date on which the tax was supposed to be paid.
Calculations for GST payment:
- Determine the total output GST.
- Determine the eligible Input Tax Credit (ITC).
- Set off the output GST with the ITC.
Methods of GST payments:
- Online GST payments.
- Offline GST payments.
A quick overview is here to pay GST online.
Take a look at offline GST payments:
You can choose cheque, DD, cash, NEFT, or RTGS voluntarily. Alternatively, one of these modes is chosen when a taxpayer’s bank is not reflected in the card payment list. Taxpayers can pay after generating the GST challan, before or after logging in to the GST portal.
Take a printout, fill in the depositor details, sign, and submit it to the bank to complete the payment process. In the case of OTC, banks will process the instrument in not more than two days. Thereafter, the electronic cash ledger gets updated with the amounts. The maximum payment that taxpayers can make through OTC is Rs. 10,000. If the amount exceeds this limit, the taxpayer must look for other modes.
If the taxpayer chooses RTGS/NEFT while generating the challan, steps vary. He must take a printout of the challan, fill and sign it, and submit it along with the challan to the bank. The bank processes this and provides the UTR number, generally in a few hours.
For any business, just purchasing, selling, and accounting are not sufficient aspects. It has to pay the legal obligations too; hence, it is important to have a solution that helps you with GST payments. BharatBills is an effective and competent software for GST billing solutions that helps you prepare invoices with automatic GST calculations. One of the best software for GST billing options available comes with a list of features that make it the one-stop solution for all your billing needs.
BharatBills is one of the easiest inventory and software for GST billing solutions with an Android application. Taxes will not scare you anymore, especially with this software for GST billing at your disposal! BharatBills provides comprehensive software for the GST billing experience, ensuring all your invoicing needs are met. Utilizing this software for GST billing allows you to streamline your operations and enhance your efficiency. By using software for GST billing, you can effectively manage your finances and ensure compliance with GST regulations.
BharatBills is extremely versatile and can be set up to meet your business needs.