Process of Filing GST in Credit Ledger and Availing the ITC

The Goods and Service Tax (GST) came into force in India on July 1, 2017. This is an indirect tax that replaces many cascading taxes levied by the State and Central Governments. This tax is applicable throughout India is a consumption-based tax. It is applicable to the sale, manufacture, and consumption of goods and services with no distinction made between goods and services for the tax.

GST according to the locality

Under the GST regime, both the state and central government collect the GST due to them in the form of the State GST (SGST) and the Central GST (CGST) when the supply is intra-state kind. When the supply is inter-state kind, then the Integrated GST (IGST) will apply. The IGST has components in both the center and state governments. There are many providers of GST accounting software that helps one to pay his tax.

Any registered supplier of goods and services must pay GST. There are a few exceptions like imports. Notified supplies are also exempted. Also, sometimes the responsibility to pay may be on the part of the third party as in the case of Government Department responsible for TDS or that of the e-commerce operator responsible for the TCS.

Easy mode of payment

The needs of the taxpayer are well perceived and so the whole process remains simplified. He can file anywhere, anytime mode of payment without any trouble. The entire payment mode is in an electronic mode with the challan generated electronically too. You have the convenience of making online payment of the GST. They collect the information for the tax collection from you in an electronic format. The paperless transaction aims at moving toward a greener world. The accounting and reporting are very fast.

Use the software

You can check the GST software price from the software provider before you place your order. Your transaction with the banks is much simplified. The digital challan remains warehoused. The Credit Ledger of the taxpayer remains on the Common Portal. You can pay the tax through debit on the Credit Ledger. Fees, Penalty, and Interest remain paid through the credit on the Credit Ledger.

Date of payment

The normal taxpayer pays the tax on the goods and services on the twentieth of the next month. You have to make cash deposits on the Cash Ledger following which the taxpayer will debit the tax amount while making payments in the monthly returns. One must file the tax return and make the payment in full. Only then, the transaction is valid. In case the taxpayer does not make a payment but files the return, the transaction is not valid. It is this valid return that they use for allowing input tax credit to the recipient.

To sum it up, one has to pay the self-assessed amount in full and file the return. Upon the receipt of the form and the amount, they will begin to process the forms. In a couple of days, they will confirm the recipient of the ITC. Once he has shown the valid return, this taxable person becomes eligible for the credit.

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