Can GST Be Paid By Using A Credit Card?
Can GST be paid by using a Credit Card? The short answer is Yes! Individuals and entities can pay GST using online platforms such as debit or credit cards. The government rolled out the new indirect tax regime in 2016 and made restrictions, refunds, and return filing online. Not only can you pay by credit card or debit card, but also by using many methods such as NEFT, RTGS, etc.
The introduction of Goods and Service Tax has made it easier for traders, merchants, retailers, and industry to accept input tax credit. It has put a low compliance burden and avoided double taxation. It made our country a single market. You don’t need to open an account in government banks. For if you have a private bank account, you can transfer money.
With the increasing spread of the internet, payment of taxes via online method has been convenient for both taxpayers and administrators.
Do you want to acquire detailed information about GST registration, refunds, returns, and other compliance? Then, enroll in the GST Course
A myth about the GST:-
You would charge twice if you paid it using a credit card. The revenue secretary has clarified that on his Twitter account “A wrong message is circulating on social media.” Hence, it is a complete myth.
If you are paying regularly, the GST will not have any impact. Service tax is not a charge on your credit card payment. But if you are paying late, the company will charge you some fees/penalties.
Find about the Top 10 Online GST Courses in India
Taxes on EMI interest.
Many banks allow their customers to convert credit card payments into EMI options. This gives the customer an option to save and pay money later in installments. However, since the GST rollout, it has become important for the customer to know how it impacts EMI.
How much GST do we have to pay on credit card EMI?
Before Goods and service tax, service tax on a credit card was 15% but now it is 18%.
Below are some charges/fees levied on credit card
- Late payment charges (When you do not pay before the due date)
- Over limit fees – when you spend more than the card’s limit
- Annual fee- It depends on the type of card and bank you are using
- Foreign exchange fees – These charges are levied when you spend in foreign markets.
- The other fees are levied by banks.
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Comparison of Goods and Service Tax versus service tax
To understand better, see the below-mentioned example:
|Service tax 15%
|Interest paid in 6 months
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How to pay Goods and Service Tax online?
Taxes can be paid either online or offline. Before paying, it is required to generate a challan. It can be generated after logging into its portal or while filing the GST return.
I have given a step-by-step guide to making GST payments. Follow these steps. For all taxpayers, the payment process is the same. You must choose a mode of payment at the time of generating challan in the form PMT– 06.
Note the Things given below while paying online.
Payment can be made with or without logging into its portal. There are selected banks that you are allowed to pay from. You are required to select a bank and make a payment. The electronic cash ledger gets updated automatically. If you have generated challan without logging in, you must make payment immediately.
How to generate challan?
It can be generated with or without logging in to the portal.
Step 1 ->Visit the GST Portal. You will land on the home page. On the home page click on Services > Payments > Create Challan option.
Image Credit: GST Tutorial
Step 2 –> On the Create Challan page enter GSTIN number or another ID. Type captcha displayed on the box. Click the “PROCEED” button.
Image Credit: GST Tutorial
Step 3 -> Reason for Challan Page
Select either Monthly Payment for quarterly return or any other payment. Click on PROCEED.
Select Challan Type either 35% Challan or Challan on Self-assessment basis.
Step 4 -> The Challan Amount Details is auto displayed. The details are auto-fetched and the taxpayers are not able to edit or delete them. Click on GENERATE 35% CHALLAN.
Image Credit: GST Tutorial
Step 5 -> You are navigated to Create Challan Page.
On this page check details related to deposit; the section is auto fetched. To pay Online tick ✔️ on E-Payment and Click on Generate Challan.
Image Credit: GST Tutorial
Step 6 -> On this page you are redirected to the payment method. Select mode credit/debit card. Under the payment category there you will see the 10 banks list.
(Axis Bank, HDFC Bank, IDBI Bank, Bank of Baroda, Punjab National Bank, UCO Bank, ICICI Bank, Indian Overseas Bank, and SBI). Select your bank and make payment and you will get a receipt with a CIN number.
Image Credit: GST Tutorial
Step 7 –> Re-enter GSTN/other ID and click on proceed button. Your receipt is generated and click on the download button.
Note: – If you face any issue kindly raise grievances in the form PMT – 07 on the GST portal.
Top 10 Credit Cards
1. SBI Card Prime
It is popular and used by many even though it is expensive.
Its annual fee is ₹2,999/- + taxes with a Welcome gift worth ₹3,000/-. Minimum income required: 32,000 per month.
It made the daily purchase easy and secure. You just need to wave your card at a secure reader to transact. It is fast and convenient. You don’t need to hand it over to swipe. This feature reduces the risk of loss and fraud due to skimming.
It is accepted all over the world. The special future is it covers fraud liability. You can withdraw the cash at any ATMs worldwide.
- You will receive 10 points per ₹ 100 spent on dining, movie, and groceries.
- You will also receive a Club Vistara Silver membership
- Eight domestic lounge visits and international lounge visits in a year
2. Citi Cash-back
Annual fee: – Rs.500
Minimum income: – Rs.25,000 per month
Top 2 cashback features
- Turn big purchases into small payment
Eg. Europe tour Rs.10,000 per month for 48 months
- Instant loan approval
- Contactless– Just tap and pay.
- Dining privileges – up to 20% saving across the participating restaurant.
- Travel and lifestyle service.
3. American express
Annual fees: – Rs.1000/–
Minimum income required: – Rs.40,000 per month
It is quite famous.
- Financial flexibility allows customers to buy now and pay later.
- 24 x 7 platinum assist: – no matter your query, you will get assistance.
- Manage from anywhere in the world.
- Contactless: just tap and you don’t need to enter the pin.
- Covers liability and gives online fraud protection guaranteed.
4. HDFC Regalia
Annual fees: – Rs.2500/–
Income should be: – Rs.90,000/month
- 1-year Zomato gold membership.
- You will receive priority pass membership.
- Offers you 1 point per Rs.150 spent.
5. Axis Bank ACE
It is launched by Axis Bank in association with Google pay. It provides rewards on bill payments. The reward is automatically credited to the card’s statement. Joining fees is Rs.499/- + taxes.
- 5% cashback when you pay bills using Google pay.
- 4% on Swiggy, Zomato and Ola.
- 2% cashback on another spending.
6. ICICI Platinum Chip Visa
One can earn PAYBACK points– 2 Payback points for ₹100 spent.
There are no joining and annual fees.
Offers 15% discount at partner restaurants.
The reward of Rs.12,263 when you will spend Rs.4,00,000 annually
7. Bank of Baroda
10 reward points/rupees hundred spent on travel, dining, and spending abroad.
2 reward points for another spending.
There are no annual fees.
You will get an easy EMI option –Convert your spending above Rs.2500/– into EMI.
You can avail yourself up to 50 days of an interest-free loan from the date of purchase.
8. IDBI Royale Signature
It is designed for those who want the best service. It is a one-stop card for all the luxuries. It gives you all the privileges you deserve in life. Currently, it is offered with no entry fees.
9. YES First Preferred
It gives you exclusive privileges and rewards. With a lot of benefits, it helps you to save more on your spending. Your points can be redeemed for any products and services.
It covers flight accidents and medical insurance. The best part is it gives you a quick EMI option or a quick loan. But to avail of this net salary should be ₹2 lakh per month or an income tax return of ₹25 Lakh. However, it is also available against a fixed deposit of Rs.3,00,00 and above.
10. Kotak Essentia platinum
It is designed for smart shoppers. You will earn saving points on your essential purchases.
It offers 10% savings on grocery stores.
10 points for ₹ 100 spent. 1 point for ₹250 spent on others.
All the above-mentioned credit cards provide the best services. But you need to choose one keeping in mind your budget, eligibility and need. Before applying, look into the terms and conditions.
Q1. How to pay GST off-line?
You can pay taxes off-line up to Rs.10,000. It can be paid at authorizing bank over-the-counter in the form of cash/cheque/draft etc. To pay this, you need to generate a challan at its portal. Then you go to the bank to deposit cash/cheque/draft etc along with two copies of challan. One copy will be given to you and another will be kept by banks as acknowledgment.
Q2. How to change payment mode?
Before the final submission, you can change the payment mode. But once the challan is generated, you are not permitted to edit it. For any changes, what you can do is cancel it and generate a new one.
Q3. What is CPIN? Till what time will it be valid?
After logging in to the portal and generation of challan, it provides a unique 14 digit ID that is called CPIN. It is valid for seven days and after that, the system will not accept the CPIN.
Q4. How to know whether you have paid successfully or not?
When you pay taxes, a unique 17-digit CIN number and three-digit bank code are generated. CIN indicates that you have paid successfully. Also, you can check your statement.
Q5. Can I pay Goods and Service Tax online at any time?
Yes. Its facility is available 24 x 7.
Note: – If you are paying between 8 AM to 8 PM, then it is counting on the same day. But after 8 PM it will be taken the next day.
Q6. What is the time limit?
It should be paid immediately if you are paying online.
So, the answer to the question Can GST be paid using a Credit Card is an absolute yes. Even though you can pay taxes using any mode, paying taxes using online mode, especially via credit cards, becomes more convenient, hassle-free, and easy to operate. However, you need to beware of hackers. Never share your financial details with anyone. Enjoy all the benefits and cashback offers.