1. Payments of Tax, TDS,
Accounts and Records
(GST – Vth Unit )
PG & Research Department of Commerce
Mannar Thirumalai Naicker College(Autonomous),
Pasumalai, Madurai -625004.
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2. The main objective of the chapter is provide
to an understanding to the various ways in which
payment of GST can be made under the law , say by
using ITC or buying cash or through TDS or TCS
mechanism.

3. Introduction
In an tax law, there is a taxable event on
the happening of which, tax is levied at a given
rate on the prescribed value, and the tax liability
is to be discharged by paying out the taxes so
computed .

4. Payments of Taxes
1
2
4
3

5. 4.TCS collector
to the extent of
TCS amount
Persons liable to pay Tax
1.Supplier of
goods or
services
2.Recipient of
supply under
RCM
3.TDS
deductor to
the extent of
TDS amount
5.E-commerce
operators in
case of notified
services

6. Time line for payment of taxes
Types of registered person Tax period Date by which tax to be paid
Taxpayers as supplier or recipient of goods or
services inn the normal course
One month 20th of the month following month inn which
supplies took place
Supplier registered under r composition scheme Quarter 18th of the month following the quarter in which
supplies took place.
Person registered to deduct tax One month 10th off the month following the month in which tax
deduction was made.
Person registered for tax collection at source (e-
commerce operator)
One month 10th of the month following the month inn which
tax collection was made.
Person registered as non-resident supplier One month or the period of registration whichever
is earlier.
20th month following the month inn which supplies
took place.
Initially an advance tax payment tto be made at
the time of registration as non-resident supplier.
Person registered as casual taxable person One month or the period of registration whichever
is earlier.
20th of the month following the month inn which
supplies took place. Initially an advance tax
payment to be made at the time of registration
as casual taxable person.

7. The manner to use ITC for payment of Taxes
As per section 49, ITC is to be used in the following sequence:
1. IGST Credit
First apply IGST credit towards output liability of IGST.
In case any balance IGST credit is left, apply this balance to pay CGST liability.
If any balance of IGST credit is still left , apply this balance to pay SGST/
UTGST liability .
2. CGST Credit
First apply CGST towards output liability of CGST.
In case any balance CGST credit is left apply this balance to pay IGST liability.
CGST credit CANNOT be applied to pay SGST /UTGST liability .
3. SGST / UGST Credit
First apply SGST /UTGST credit towards output ;liability of SGST/UTGST.
In case any balance SGST/UTGST credit is left apply this balance to pay IGST liability
SGST/UTGST credit CANNOT be applied to pay CGST liability.

8. Order of payment of Taxes and other Dues
First , taxes and other dues of previous tax period to be paid;
Next, taxes and other dues of current tax period to be paid;
Next, any other amount payable under GST to be paid.
Order of payment of Taxes and other Dues

9. Interest @18 % PA or
24% PA depending
upon the reason of
delay
Show cause Notice u/s
73 or 74 may be issued
for recovery of taxes
Consequences of Non-payment of Tax
Delay in Payment Failure in payment

10. TDS
Persons liable to deduct TDS
1.Department or Establishment of GOVT.
2. Local Authority
3. Govt. Agencies
4. Authority or board set up by an ACT of parliament or state
Legislature
4. Authority or board established by Govt. with 51% or more
equity.
5. Society established by Govt. or local authority
6. Public Sector undertakings.

11. When TDS to be deducted
1. Transaction on which TDS to be deducted.
2. Transaction on which TDS not to be deducted.
Where total contract value of
supply exceeds Rs.2.5 lakh
Where supplier and PoS in
one state and recipient in
another state.

12. Consequences of not complying with TDS provisions
TDS not deducted –TDS amount +Interest payable .
TDS deducted but not paid –TDS amount + Interest + Penalty Payable.
TDS certificate not issued in time –Late fee of Rs. 100 per day, maximum of Rs. 5000.
Late filing of TDS returns – Late fee of Rs. 100 per day, maximum amount of Rs. 5000

13. Tax Collection at Source (TCS)
Every e-commerce operator is to collect TCS @ 1% from the
payments collected and remitted by them to the suppliers
registered on their portal.

14. Procedural Compliances for TCS Collection
Registration for collection of TCS in form REG -01.
Collection of TCS @ 1% from payment received on account of
supplies registered on the portal of e-commerce operator.
Deposit off TCS collected by the 17th of next month.
Filing of return by TCs collector in gSTR-8 for every tax period and
filing of annual return in form GSTR-9B.
Furnishing of information by e-commerce operator when asked by
GST officer.

15. Late fee under GST Law
An Extra amount of money that must be paid if an act is done
after certain date or time limit
GST Law prescribes late fee only in case of late filing of various returns or TDS
certificate
Nature of documents
/information to be paid
Late fee prescribed
Return to be filed under
section 37,i.e. GSTR-1.
Rs.100 per day starting from the due date till
the date on which is actually filed. However,
the amount of late fees in aggregate shall not
exceed Rs. 5000.
In case of GSTR 3B the late fee is;
(i) Rs.20 in case off returns having NIL liability
(ii) Rs. 50 in other cases.
Return to be filed under
section 38,i.e. GSTR-2. and
section 39 like GSTR-
3,3B,5,, 5A,6,7,8

16. Nature of documents
/information to be paid
Late fee prescribed
Returns to filed under
section 44,ie.,GSTR-9
Rs.100 per day starting from the due
date till the date on which it is actually
filed. However , the amount off late fees
in aggregate shall not exceed 0.25% of
the turnover.
Certificate of TDS deduction
to be furnished under
section 51(4) by the TDS
Deductor.
Rs.100 per day starting from the due
date till the date on which it is actually
filed. However , the amount off late fees
in aggregate shall not exceed Rs.5000.

17. Fine under GST Law
Payment in money for a wrong act
Failure to furnish information
U/S 151 of the CGST Act
In case of confiscation of
goods officer may provide
option to pay fine in lieu of
confiscation
Fine Rs. 10000; for continuing
offence Rs. 100 per day
subject to maximum of Rs.
25000.
Fine: Not to exceed market
value of goods less tax
payable.

18. Offences and penalty under GST Law
Specific offences, specific
penalty
General offences general
penalty
Under section
122(1) 122(2) 122(3) 122
Contravention of any provision
of GST Law
Penalty up to Rs. 25000.

19. u/s 122 (1)
Supply without issue of invoice.
Refund obtained by frauds.
Failure to take registration .
Tempering with documents.
Penalty Rs. 10000 or amount
of tax involved
whichever is higher. .

20. u/s 122 (2)
Goods supplied without payment of tax or short- payment of tax.
Input tax credit wrongly availed or utilised
For reason off fraud
Rs. 10000; or Equivalent
of tax due
Whichever is higher
For reason other than
fraud
Rs. 10000; or 10% of the
tax due
Whichever is higher

21. u/s 122 (3)
Aides and abates specified u/s 122(1).
Involved in deals of goods which are liable to confiscate.
Receives or supplies in contravention of the provision of the act
fails to appear before the officer
Fails to issue invoice or account for an invoice in books of
account.
Penalty up to Rs. 25000

22. u/s 122
Fails to submit the
information return within due
date.
Rs.100 per day maximum up
to Rs. 5000.

23. Interest chargeable under GST Law
Delay in payment as
either full tax or part
of tax
Claims excess or
under input tax
credit
Undue or excessively
reduced output tax
liability
18% of the tax due 24% of the wrong
credit taken
24 % of the reduced
liability

24. Detention, Seizure & Confiscation of Goods
1. Suppliers or receiver in
contravention of the provision of
the ACT.
2. Not allow for any goods which is
liable to be taxed.
3. Supplied goods without
registration.
4. Use any conveyance for
transport in contravention of the
provisions off the ACT.
Transports any
goods or stores
any goods in
contravention of the
provision of the Act
The goods and
conveyance are
liable to be detained
& seized.
The goods shall be
confiscated.

25. Punishments section 132
In the GST Law, specific provisions have been made to given
punishments under section 132.
The punishment involves imprisonment and fine depending upon the
severity of the offence . The provisions for punishments are
independent of confiscation and penalty provisions.
That means even if the goods are confiscated or penalty has been
already been imposed, punishment provisions may still be applicable in
given situation.

26. Interest chargeable under GST law
Examples:
ABC ltd., net tax liability for the month off February 2018 was calculated as Rs .15500. He is
liable to file his GSTR 3 for the month of February 2018 till 20th march 2018 and the last date
for tax payment is also 20th march 2018 but he paid the ta on 15th April 2018. In this case the
period of interest shall be calculated from the date following the date when tax was liable to
paid (i.e. 21st march 2018 till the actual date of payment of tax i.e. 15th April 2018 i.e 28 days).
So interest shall be Rs. 15,500 * 18%*26/365=Rs.198.70

27. When the person claims excess or undue input tax credit u/s 42(10).
In the GST law when recipient of supply claims credit for a given
invoice the respective details in the of the seller should match. In case of
mismatch, there could be a position of excessive or undue credit.
If the person claims credit in excess of the amount which he was
required to claim as input tax credit , then such person is liable to pay the
interest on the amount which is excessively claimed as credit. The rate of
interest shall be @24%.

28. When the person unduly or excessively reduces his output tax
liability u/s 43(10).
When a person issues a credit note to other person that may have
an effect off reducing his output tax liability on the sales which he earlier
made
Examples:
Hari Goods sold to Nithya Rs. 1lakh GST Rs. 18000
Later Nithya finds issue of product (quality of goods ) rate is to reduced .
25000 @18%=Rs. 4500 which it reduced
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