GST Payment: A Complete Guide for Taxpayers in 2025
Introduction
GST (Goods & Services Tax) is India’s unified indirect tax system, introduced on 1 July 2017 under the One Hundred and First Amendment . Designed to replace a patchwork of state and central levies, it revolutionized tax compliance—but also added complexity, especially around GST payment. Whether you're a seasoned business owner or a freelancer setting up for the first time, understanding how and when to pay GST correctly is essential to avoid penalties.
In this guide, we'll cover everything from due-date rules and payment methods to common issues and best practices for staying compliant.
Key GST Payment Deadlines in 2025
Monthly vs. Quarterly Filing
India’s GST system splits taxpayers into monthly filers and QRMP (Quarterly Return Monthly Payment) filers:
| Filer Type | Return Form | Filing Deadline | Payment Deadline |
|---|---|---|---|
| Monthly (turnover > ₹5 Cr) | GSTR-1 | 11th of next month | 20th of next month (GSTR‑3B) |
| QRMP (≤ ₹5 Cr) | GSTR-1 (Quarterly) | 13th (quarterly) | 25th (monthly PMT‑06) |
| Other Forms | GSTR-5/6/7/8 | 10th or 13th of next month | Same as return due date |
GST Payment Methods & Portal Process
Available Payment Modes
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Online: Net banking, IMPS, UPI
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Offline: NEFT/RTGS (requires CPIN)
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Over-the-Counter (OTC): Cash up to ₹10,000 per challan
Steps to Create a Challan (GST PMT-06)
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Log into GST portal
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Navigate to Services → Payments → Create Challan
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Select tax type (e.g., monthly return)
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Enter liability breakdown (CGST, SGST, IGST, etc.)
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Generate CPIN (valid for 15 days)
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Pay via preferred mode
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Track status under Payments → Challan History
Make payments before 8 PM—any payment after that reflects the next day
Common Payment-Related Issues and Solutions
Late Payment & Interest
Payments past due attract 18% annual interest, calculated daily. Late filing also incurs penalties per day .
Pending or Failed Transactions
If payment shows pending:
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Check your cash ledger's CPIN status
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Match UTR number for NEFT/RTGS entries
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Use tax ledger to confirm
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File grievance using PMT‑07 on the GST portal
Annual Compliance & Special Provisions
QRMP vs Composition Scheme
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QRMP: Pay monthly via PMT‑06; file quarterly GSTR‑1 and GSTR‑3B
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Composition: Simple flat 1–6% tax; file GSTR‑4 by 30 June 2025 for FY 2024‑25
Year-End Tasks Before 31 March 2025
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File LUT for exports by 31 March
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Opt into/out of QRMP scheme by 30 April 2025
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Register GTA payment mode before 31 March
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Submit ITC-03 reversal by 31 May 2025
Use of Input Tax Credit (ITC) for Pre-deposit
In a significant Supreme Court ruling, taxpayers can now use ITC to make mandatory pre-deposits for GST appeals instead of cash improving liquidity and simplifying compliance.
GST Amnesty & Return Limitations
Amnesty under Section 128A
Kerala’s GST amnesty scheme (valid until 30 June 2025) allows settlement of pre-GST dues with waivers on interest/penalties. Taxpayers must withdraw appeals and upload screenshots on the GST portal
3-Year Time Bar on Returns
From July 2025, the GSTN enforces a 3-year limit for filing or revising returns, beyond which compliance lapses permanently Plan early!
Best Practices for Smooth GST Payments
Pro Tips to Stay Compliant
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Maintain a payment calendar aligned with return due dates
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Reconcile your cash ledger monthly to match liabilities
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Use ITC smartly in cash-strapped situations
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Withdraw outdated appeals to benefit from amnesty schemes
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Avoid last-minute filings—handle before 8 PM due time
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Keep documents like CPIN, UTR, challan receipt, pre-deposit screenshots handy
Common FAQs on GST Payments
FAQ Quick Answers
Q1. Can I pay GST offline?
Yes—NEFT/RTGS or OTC (cash up to ₹10,000/challan)
Q2. What if a challan expires?
Generate a new one—CPIN valid for 15 days only .
Q3. Does ITC apply to late payments?
Yes—cash and credit entries show in electronic ledgers .
Q4. Can I use ITC for appeal pre-deposit?
Yes, following Supreme Court ruling
Q5. How long can one pay old pending dues?
Within 3 years of initial due date; post-July 2025 returns cannot be revised
Conclusion
Mastering GST payment compliance is vital to avoid penalties, preserve liquidity, and maintain a smooth business operation. By understanding deadlines, payment mechanisms, special provisions, and compliance strategies, taxpayers can confidently manage their tax obligations through 2025 and beyond.
Would you like a reminder calendar, step-by-step challenger template, or a graphic infographic to guide your team or clients? I’d be happy to design it for you!
