Introduction
Goods and Services Tax (GST) has become the most important indirect tax system in India. Every registered business, whether small or large, has to make timely GST payment to remain compliant with the law. Any delay in payment can attract penalties and interest. Recently, the government has introduced some important updates that directly impact businesses, especially regarding deadlines and payment options.
This article covers the latest news on GST payment, revised filing schedules, penalties, and how businesses can adapt to these changes.
What GST Payment Means
GST payment is the process where businesses deposit the tax they collect from customers with the government. Companies act as a link between consumers and the government by collecting GST on every sale and then paying it during return filing.
There are three main parts of GST payment:
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CGST (Central Goods and Services Tax) – collected by the Centre.
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SGST (State Goods and Services Tax) – collected by the State.
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IGST (Integrated Goods and Services Tax) – collected on interstate transactions.
Latest Updates on GST Payment (2025)
Revised Filing Deadlines
The government has reiterated that businesses with turnover above ₹5 crore must file their GST return (GSTR-3B) and make payment by the 20th of every month. For smaller businesses with turnover up to ₹5 crore, staggered due dates continue to apply, depending on the state in which the business operates.
Mandatory E-Invoicing
Starting April 2025, more businesses will come under mandatory e-invoicing. Companies with turnover above ₹5 crore must now issue e-invoices. This move is expected to make GST payment more transparent and reduce fraud.
Interest and Penalty Rules
The government has also reminded taxpayers that a delay in GST payment attracts interest at the rate of 18% per annum. If non-payment continues, penalties can be added on top of the interest.
New Payment Options
To make compliance easier, GST payment through UPI and mobile banking has been introduced. Taxpayers can now pay directly using UPI, NEFT, RTGS, or debit/credit cards through the GST portal.
GST Payment Deadlines You Should Remember
GST payments are closely linked with return filing. Businesses must keep track of important dates such as:
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11th of the following month – for GSTR-1 (sales details).
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20th of the following month – for GSTR-3B (summary of supplies and payment of tax) if turnover is above ₹5 crore.
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18th of the following quarter – for CMP-08 under the composition scheme.
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31st December of the next financial year – for filing the annual return (GSTR-9).
Missing these deadlines can create cash flow issues and lead to blocked input tax credit, which directly affects business operations.
How Businesses Can Make GST Payment Online
The government has simplified the process of making GST payment. Taxpayers need to log in to the GST portal, create a challan, enter the required tax amount, and select a payment method. Options include internet banking, UPI, cards, NEFT, or RTGS. Once payment is made, the system generates a receipt that can be used as proof of payment.
This digital approach reduces paperwork and saves time for businesses.
Common Issues Faced by Businesses
Even though the system has improved, some challenges remain. Many businesses report technical glitches on the GST portal, especially near deadlines. Small traders also struggle with cash flow issues, which can lead to delayed GST payment. Errors in challan generation or difficulty in reconciling invoices across multiple states are other common problems.
Tips for Timely GST Payment
To avoid last-minute stress and penalties, businesses should:
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Set reminders for every due date.
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Maintain clear records of sales and purchases.
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Use GST-ready accounting software.
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Avoid filing at the last moment when the portal is busy.
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Take professional help from accountants or tax advisors.
Why Timely GST Payment Matters
Making GST payment on time is not only about avoiding penalties. It also helps maintain a business’s reputation, ensures smooth availability of input tax credit, and keeps cash flow steady. For companies dealing with government contracts, a strong compliance record can even improve chances of winning bids.
Conclusion
GST payment is a responsibility that no business can ignore. With the government tightening compliance and expanding e-invoicing, businesses must remain updated and disciplined. The introduction of UPI payments and digital options is a welcome step that makes the process more convenient. However, deadlines remain strict, and businesses should not wait until the last day to make their payments.
By staying proactive and keeping track of updates, businesses can avoid penalties, maintain compliance, and focus on growth.
