FAQ ON GST:- CHAPTER 7 – GST PAYMENT OF TAXES

GST Update 19.10.2016

GST DAILY DOSE OF UPDATION:-

FAQ ON GST:- CHAPTER 7 – GST PAYMENT OF TAXES

Question no. 14:-This speaks about the linkage between GSTN and the authorised banks. There will be real time, two way linkage between GSTN and Core Banking Solution of bank and no manual intervention would be involved in order to bring transparent system. Challan Identification Number (CIN) will be automatically sent by the bank to the common portal confirming payment receipt. At present also, the taxes are being paid electronically and CIN is being generated by banks in Excise and Service Tax Laws. However, under Customs, there is still practice of making payment via manual challans that are to be verified by bank staff. The automation of payment mechanism is an appreciable step in the wake of technological advancement.

Question No. 19:- This speaks aboutrelevance of CIN. It is 17-digit number wherein 14 digits are CPIN while 3 digits are bank code. CIN is generated by the authorised banks/RBI when payment is actually received by banks and credited in relevant government account. Thus, CPIN is given at the time of generation of challan and is valid for 15 days while CIN is generated after confirmation of payment by the taxpayer.

Question No. 20:-This clarifies about the sequence of payment of tax where the taxpayer has liabilities for previous months also. It is stated that the order for appropriation of taxes paid shall be that the self assessed tax and interest for the previous period is considered first and thereafter self assessed tax and interest for the current period is taken into account. Thereafter, any amount payable for confirmed demand will be considered. This sequence is to be followed mandatorily by all taxpayers. This means that a person cannot pay his current period liability and later on pay the previous period liability. He has to pay earlier arrear and then current period tax. This provision was not there in earlier laws.

Question no. 26:-It is mentioned that pre-registration of credit card will be necessary in the GSTN Portal for GST payment. GSTN may also develop a system wherein banks get credit card verified by taking confirmation from credit card service provider. This is being done to secure transactions made through credit cards for payment of taxes.

We will carry some other questions in our next update.

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GST Update 19.10.2016

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