GST payments flow through three electronic ledgers: Cash Ledger (deposits), Credit Ledger (ITC), and Liability Register (dues). Payments are made via PMT-06 challan using internet banking, NEFT/RTGS, or OTC. ITC utilization follows a mandatory order under Section 49A/49B.
Purpose: Records all GST cash payments made by the taxpayer
Sources: Deposits via PMT-06 challan (internet banking, NEFT/RTGS, OTC), TCS credit from ECOs, TDS credit from deductors, refund re-credit
Usage: Pay output tax (IGST, CGST, SGST/UTGST), interest, penalty, fees, late fees. Any head can be paid from cash ledger — no cross-utilization restrictions.
Balance: Excess balance can be: (1) carried forward to next period, (2) claimed as refund via RFD-01, (3) used for any future GST payment.
Purpose: Records all ITC (Input Tax Credit) available to the taxpayer
Sources: Auto-populated from GSTR-2B (supplier's outward supply data), ITC on imports (Bill of Entry), ITC reversal entries, transitional credit (TRAN-1)
Usage: Pay output tax ONLY (not interest, penalty, or fees). Cross-utilization rules: IGST credit → IGST first, then CGST, then SGST. CGST credit → CGST or IGST only. SGST credit → SGST or IGST only.
Balance: Excess ITC balance: (1) carry forward, (2) refund only in specific cases (exports, inverted duty). Cannot be withdrawn as cash.
Purpose: Records all GST liabilities (output tax, interest, penalty, fees)
Sources: Auto-generated from: GSTR-1 (outward supply), GSTR-3B (self-assessed tax), assessment orders, audit findings, demand notices
Usage: Liabilities are discharged by: (1) debiting electronic credit ledger (ITC), (2) debiting electronic cash ledger (cash payment). Order of discharge: self-assessed tax first, then other amounts.
Balance: Outstanding balance = unpaid liability. Must be paid to avoid interest (18% p.a.) and penalties.
Navigate to gst.gov.in → Login → Services → Payments → Create Challan. You can also create challan without logging in (Pre-login → Payments → Create Challan) — enter GSTIN manually.
Choose the tax period (month/quarter). Enter amounts under each head: CGST, SGST/UTGST, IGST, Cess. Separately enter: Tax, Interest (18% p.a.), Penalty, Fees, Late Fee, Others. System calculates total automatically.
Three modes: (1) Internet Banking — select from 40+ bank options, redirects to bank portal, (2) NEFT/RTGS — generates mandate form with UTR details, deposit at bank, credit in 2-4 hours, (3) Over the Counter (OTC) — for amounts up to ₹10,000 per challan per tax period (₹10,000 limit).
System generates CPIN (Common Portal Identification Number) — 14-digit unique challan ID. CPIN is valid for 15 days from generation. If payment not made within 15 days: CPIN expires, generate new challan. Print/save challan for records.
Complete payment via selected mode. For internet banking: payment is instant. For NEFT/RTGS: bank processes and credits to GST system (2-4 hours). For OTC: visit authorized bank branch with printed challan. On successful payment: CIN (Challan Identification Number) is generated — this is your payment proof.
Amount credited to Electronic Cash Ledger (major head-wise: IGST, CGST, SGST, Cess). Reflected in GST portal within: Internet Banking — immediate, NEFT/RTGS — 2-4 hours, OTC — 1-2 hours. Use this balance to offset liability in GSTR-3B.
IGST credit must be used first to pay IGST liability. Remaining IGST credit: use for CGST, then SGST (any proportion). CGST credit: CGST first, then IGST (cannot use for SGST). SGST credit: SGST first, then IGST (cannot use for CGST). This order is MANDATORY — cannot be changed by the taxpayer.
Rate: 18% per annum on the tax amount unpaid. Calculated from: due date of payment to actual date of payment. For ITC wrongly claimed and utilized: 24% per annum. Interest is calculated on net cash liability (after ITC adjustment) — Supreme Court ruling.
Maximum ₹10,000 per challan per tax period for Over-the-Counter payments. Amounts above ₹10,000: must use internet banking or NEFT/RTGS. Government departments: no OTC limit (can pay any amount at bank counter).
CGST credit CANNOT be used to pay SGST liability (and vice versa). Only IGST credit can flow to both CGST and SGST. This is because CGST is central tax and SGST is state tax — cross-utilization would distort revenue sharing.
CPIN generated on portal is valid for 15 days. If payment not made: CPIN expires, no penalty. Generate new challan. For NEFT/RTGS: must submit mandate form to bank within CPIN validity. Partial payment: not allowed — full challan amount must be paid.
Login to gst.gov.in → Services → Payments → Create Challan → Enter amounts under CGST, SGST, IGST, Cess → Select payment mode (Internet Banking recommended for instant credit) → Generate CPIN → Complete payment → CIN generated as proof. Amount is credited to your Electronic Cash Ledger and can be used to offset liability in GSTR-3B. You can also create a challan without login: Pre-login → Payments → Create Challan → Enter GSTIN.
Every GST taxpayer has three ledgers on the portal: (1) Electronic Cash Ledger (Section 49(1)): records cash deposits via PMT-06, TCS/TDS credits. Used to pay any GST liability. (2) Electronic Credit Ledger (Section 49(2)): records ITC from GSTR-2B. Used to pay output tax only (not interest/penalty). (3) Electronic Liability Register (Section 49(7)): records all liabilities from returns, assessments, and demands. Liabilities are discharged by debiting cash and credit ledgers.
No. Cross-utilization between CGST and SGST is not allowed. CGST credit can pay: CGST liability, then IGST liability (in that order). SGST credit can pay: SGST liability, then IGST liability. Only IGST credit has flexibility — it can pay IGST, then CGST, then SGST. This restriction exists because CGST is central revenue and SGST is state revenue — cross-utilization would distort the revenue sharing formula.
18% per annum under Section 50 on net cash tax liability (not on ITC portion — per Supreme Court). Calculated from due date to actual payment date. For ITC wrongly availed AND utilized: 24% per annum. Example: ₹1,00,000 tax unpaid for 30 days: Interest = 1,00,000 × 18% × 30/365 = ₹1,479. Interest must be paid in GSTR-3B along with the delayed tax amount.
Over-the-Counter (bank counter) payment is limited to ₹10,000 per challan per tax period for regular taxpayers. For amounts above ₹10,000: must use electronic modes (internet banking, NEFT/RTGS). Government departments: exempt from this limit (can pay any amount via OTC). The OTC limit was introduced to encourage digital payments and ensure audit trail.
Auto-calculate ITC utilization order, generate PMT-06 challans, and track all three electronic ledgers in real-time.
Start Free Trial