Tag: Online payment of GST

Trends and Innovations in GST Payments: What to Expect in the Future?

Post author By Surbhi Mehtani
Post date May 18, 2023

We are all well-versed with the Goods and Services Tax (GST) that was introduced in India on July 1, 2017. Well, did you know that it is a comprehensive tax on the supply of goods and services that simplified the indirect tax system in India by unifying multiple taxes such as excise duty, service tax, and VAT?

While GST payments are an integral part of the GST regime, and every registered person under GST has to comply with the provisions of payment of tax under GST.

In this blog, we will explore the ongoing trends with regard to GST and what we can expect to see in future.

Payment of tax under GST

Under the GST tax payment, taxpayers are required to make various types of payments such as tax on outward supplies, tax on reverse charge basis, interest, late fee, penalty, and so on. The GST payments are made through the GST portal, which is a common online platform for all GST-related activities. The tax payment can be made either through the cash ledger or the input tax credit (ITC) ledger. The cash ledger is used to make payments for tax, interest, penalty, and so on, while the ITC ledger is used to make payments for tax only.

Under the GST system, the payment of taxes has become more streamlined and simplified. Previously, taxpayers had to make separate payments for different types of taxes such as VAT, Service Tax, and Excise Duty. However, under GST , all these taxes have been combined into one, making the payment process more manageable.

Trends in GST tax payments

The GST payment system has evolved over the years, and various trends have emerged in the GST payment ecosystem. One of the significant trends in GST payments is the increasing use of digital payments. With the digitalization of the economy, there has been a significant shift towards online payments. The GST payment system has also adapted to this trend, and taxpayers can make GST payments through various digital payment modes such as net banking, credit/debit cards, UPI, and so on.

Another trend in GST payments is the introduction of new payment modes. The GST payment system has introduced new payment modes such as the electronic cash ledger, which allows taxpayers to make payments without the need for a physical challan. This has reduced the compliance burden on taxpayers and made the payment process more convenient.

Impact of technology on GST payments

The impact of technology on GST payments has been significant. Technology has made the payment process more efficient, convenient, and secure. The GST payment system has adopted various technologies such as the use of digital signatures, e-invoicing, and so on, to make the payment process more secure.

The use of technology has also reduced the compliance burden on taxpayers. With the use of technology, taxpayers can now file their returns and make payments from the comfort of their homes or offices. This has reduced the need for physical visits to the tax department and has made the payment process more convenient.

Future of GST payments

The future of GST payments is likely to be shaped by various factors such as the increasing use of technology, the introduction of new payment modes, and so on. One of the significant developments in the GST payment system is the proposed introduction of the e-invoice system. The e-invoice system is expected to make the payment process more efficient and reduce the compliance burden on taxpayers. Fintech solution providers such as EnKash ensure that you are able to generate your invoice with utmost ease.

The future of GST payments is exciting, with various advancements expected to further streamline the payment process and make it more efficient. One of the significant developments in the GST payment system is the proposed introduction of the e-invoice system. This system aims to make the payment process more efficient and reduce the compliance burden on taxpayers.

Another development that is expected to shape the future of GST payments is the increasing use of Artificial Intelligence (AI) and Machine Learning (ML) in tax compliance. The use of AI and ML is likely to reduce the compliance burden on taxpayers by automating tasks such as tax filing and payment. This will help to reduce errors and ensure that taxpayers are fully compliant with the tax laws.

Conclusion

The GST payment system has come a long way since its introduction, and the future looks bright with the introduction of new technologies and payment modes. The government must continue to invest in the system’s infrastructure and ensure that it remains user-friendly and accessible to all taxpayers. With these efforts, the GST payment system is likely to become more efficient, convenient, and secure in the years to come.

Being one of the best spend management platforms, we ensure that the payment of GST takes place smoothly and efficiently.

So, what are you waiting for? Get the best fintech solutions with our team of experts with just a click.

Tags Pay gst online, Pay gst challan online, GST Payment Status, GST E payment, Online payment of GST, Payable and Expenses, How to pay GST online

Expenses

Why Is Vendor Reconciliation Essential and How to Make It Simple?

Post author By Surbhi Mehtani
Post date May 11, 2023

Reconciliation of accounts, whether it is bank versus cash or collections and receivables or anything else is an ongoing process. When done manually, the process of reconciliation can be time-consuming and prone to errors. In this article, we will look at vendor reconciliation, why it is essential, and how to simplify it to ensure continuity and consistency.

Vendors are the lifeline to your business by ensuring quality supplies in a timely manner. As a startup with numerous priorities, it is important to manage your vendor network in the best possible manner. This will ensure that not only do you get quality supplies from vendors but also get good rates and maintain a positive market reputation.

What does the vendor management process entail?

To understand this better, let’s start by looking at the vendor payment cycle. The vendor onboarding process in general, has the following steps:

Identification of the product or service that you require from the vendor, the frequency, the quantity, and quality parameters defined in clear terms
Then the procurement department calls for quotations from a list of vendors who can meet these parameters
Once the quotations are received, they are evaluated, and a vendor is finalized with the issuance of purchase order (PO)
The vendor supplies the product or service and raises an invoice as per the terms agreed asking for payment
The finance department forwards the invoice to the relevant department to confirm if the supply was made as per the agreed terms
Once the concerned department checks and confirms this, then the department head approves the invoice for payment
The invoice is taken up by the finance department along with approvals to make the final payment
The process repeats itself without the first three steps, which is the procurement process

Sounds simple enough, doesn’t it? While the process is fairly straightforward it can get complicated and error-prone, it becomes time-consuming when you add numerous vendors, different payment cycles, and the needs of various departments and branch offices. And that is the case with most businesses.

What is the vendor reconciliation process?

Vendor reconciliation is the process by which the finance department confirms that

The supply of products or services is as per agreed terms
Whether the pricing is correct or not
If rebates and discounts have been applied for on-time payments
Payments have been made or not and from which bank account

What happens if vendor reconciliation is not handled properly?

Vendor reconciliation is an important step in the process of vendor management. The reconciliation process throws light on various aspects, which include the following.

Meeting business requirements

The vendor reconciliation process highlights whether vendors are supplying as per the quality parameters and quantities agreed upon at the right price. This, information in turn, helps you determine if you need to continue with the same vendor or change the vendor.

Price reconciliation

The process of reconciling also helps you determine whether the vendor is charging the right pricing and giving you rebates for making payments on time. You can also determine that factors like taxes are in the right order.

Supply continuity

Reconciling details of the vendor supplies and ensuring payments go on time also helps ensure that the vendor continues to supply as agreed. The continuity of vendor support ensures that you can meet customer demands.

Avoid double or missed payments

Vendor reconciliation helps ensure that you have not paid the same vendor for a single invoice twice by mistake or missed paying an invoice entirely. Tracing these details can make it easier to manage vendors in the long run and keep your financial records updated.

How to make vendor reconciliation process simpler?

Fortunately, today we have the advantage of advanced technology to help us manage the entire process with ease. A smart spend management platform like EnKash, will help you with various aspects of vendor reconciliation. Onboarding vendors becomes easier with the digitization of the KYC (know-your-customer) process. Once all the details are recorded on the portal, it is easy to have an overview of the spend against each vendor.

Also Read: What is Vendor Payment, and How Does It Work?

The invoices asking for payment can also be digitized and viewed on the system. The details can be matched with the PO with ease, sent for checking and approvals from within the system. Once the payment has been made, the requisite entries can be made in real-time. In fact, you even have the option to generate reports and analytics to delve deeper into the spend and optimize spends when required.

Tags Vendor payments, Payment reconciliation, Vendor payment journal entry, Vendor payment portal, Online payment of GST, Payable and Expenses, Vendor payment, Vendor reconciliation

Cards

How to Pay GST on Advance Payments

Post author By Surbhi Mehtani
Post date February 22, 2023

Advance payments are transactions or parts of transactions done in advance. These payments are recorded as assets on the business sheet and made before exchanging goods and services. They are also known as prepaid expenses.

Advance payments are widespread and valuable for businesses to keep track of their assets. Through online GST payment, companies can now file GST on advance payments using their own device from their homes and offices. Let’s understand how you can pay GST on advance payments online safely and securely.

What is GST?

GST, also known as Goods and Services Tax, replaced VAT in 2017 as the indirect tax in India. It is levied on goods and services sold for domestic consumption and has many different tax slabs depending on the product. GST is paid to the supplier at the time of delivery of goods and services. Businesses file GST every month, and businesses can file for GST returns at the end of the financial period, for that you should know about the types of GST returns.

The main feature of GST is that it is entirely digitalized. This means that electronic payments can be made for GST payment at one’s leisure. Moreover, online GST challan payments support various modes of payment, including corporate cards which makes them highly convenient.

What is GST on advance payments?

Because GST payments are made online, businesses can easily track the GST on advance payments. GST on advance payments is exactly like GST on regular transactions. It is calculated as a percentage of the advance payment instead of the total amount. The best part is that GST on advance payments allows businesses to file their taxes in a timely manner.

Here are some crucial points to bear in mind while paying GST on advance payments:

Receipt of advance payment
The receipt of advance payment is an essential document when you are generating the online GST challan. It contains the time of supply, which is when the final payment and delivery of goods are decided to take place. This helps both the involved parties, and the authorities compute the date of GST payment. As we will see below, businesses generally prefer to pay the GST on advance payments during the receipt of advance payments.
Exemption of GST on advance payment
Another critical point to note is that while GST is paid during the delivery of goods and services, GST on advance payments is compulsorily applicable to services. In simple words, GST on advance payments in the case of services must be paid while making the advance payments. Even in the case of goods, businesses that have opted for the composition scheme must complete the payment of GST on advance payments. This is why tracking and paying GST is important for all businesses when it comes to GST on advance payments.
GST advance receipt voucher
For regular transactions, businesses issue a GST tax invoice once they complete the payment. However, in the case of advance payments, they issue a different document called a GST advance receipt voucher. It acts as proof of received payment and includes the company’s particulars, date of issuance, advance payment amount, the GST on advance payment, and the applicable tax rate. Additionally, it must contain the GST identification number of the supplier and the place of supply, including the state and the pin code.

How GST challan payment can be made online

Tax payment under GST is convenient because it can be done on your device. Online GST challan payments can be made on the EnKash portal via these simple steps:

Log in to the government GST portal
Create the GST challan
Select NEFT/RTGS as the payment mode
Enter remitting bank name
Upload the generated challan on EnKash portal
The challan is auto-verified with the maker/checker approvals
Pay the GST on advance payments using credit cards or any other convenient mode

Also Read: GST Registration Requirements

How to streamline tax payments

Using the EnKash portal, you can quickly pay tax under GST. It provides a user-friendly interface to track GST challans and manage the company cash flow. Furthermore, it provides a centralized location to monitor GST payments, make timely payments, and avoid penalties.

Besides, online GST challan payments allow you to pay using various payment methods. EnKash auto-reads GST challans and converts them into payment records swiftly. It also shares insights from past records and enables businesses to proliferate. Finally, EnKash can help you streamline tax payments by ensuring safe and smooth transactions.

Conclusion: You can now make GST payments using the EnKash portal. EnKash is a spend management platform built specifically for business needs. It uses efficient software programs to deliver a hassle-free experience while paying GST on advance payments. Complete online GST challan payments quickly and never worry about last-minute struggles.

Tags GST payment challan, Cards, E Invoicing under GST, GST Payment Status, GST E payment, Online payment of GST

iLearn Growth Guide

Steps to Pay GST Challan Payment Online

Post author By Surbhi Mehtani
Post date January 9, 2023

Goods and Services Tax or GST is an indirect tax levied on the supply of goods and services in India. GST is a comprehensive tax that subsumes various indirect taxes previously levied by the central and state governments. It includes value-added tax (VAT), service tax, and excise duty. Moreover, GST is administered by the Central Board of Indirect Taxes and Customs (CBIC) and is collected by the state and central governments. You can pay GST in both online and offline modes.

Now you might be wondering how to pay the GST payment online. The payment can be made easily by just following a few steps. Further in this article, we will discuss the steps to pay the GST payment in detail.

A GST challan is a document used to pay GST to the government. The GST challan specifies the amount of GST being paid, the tax period for which the payment is made, and other relevant details. GST challans can be generated online through the GST Portal or manually through a physical form.

What Is GST Payments Online?

GST payment online is the payment process towards a GST liability using a GST challan. It can be done online through the GST Portal or offline through a bank or other financial institution. GST billing can be made monthly or quarterly, depending on the person or business entity’s tax period and the GST liability. Making GST payments on time is important to avoid penalties and interest charges.

To make a GST challan payment online, businesses must first generate a GST challan using the GST portal, an online platform managed by the Indian government to administrate GST. The GST challan will include the payment details, such as the amount of GST due, the tax period, and the due date.

Once the GST challan has been generated, businesses can make the payment using the payment gateway on the GST portal. Payment can be made using various methods. Businesses need to make timely GST challan payments online, as failure to pay GST on time can result in penalties and interest charges.

Why Is It Important to Be on Time with The Taxes?

Tax payment or GST challan payment online is important because it is a legal requirement and a way for individuals and businesses to contribute to the funding of government services and programs. Taxes are used to pay for things like schools, roads, healthcare, and other public goods and services that benefit the community. Paying taxes is also a way to support a country’s economy’s overall functioning and stability. There are multiple reasons why timely payment of taxes is crucial:

1. Legal obligation

Paying taxes is a legal obligation for businesses and individuals, and failure to pay taxes on time can result in penalties and fines

2. Avoid tax fraud

Filing your taxes on time helps to prevent tax fraud, as it ensures that all of the information reported on your tax return is accurate and up to date

3. Maintaining compliance

Paying taxes on time helps businesses and individuals maintain compliance with tax laws and regulations, which is important for avoiding legal problems and maintaining a good reputation

4. Avoiding penalties and interest

If you file your taxes after the deadline, you may be subject to late fees and penalties; these can add up quickly and significantly increase the amount you owe

5. Maintaining good credit

Late payment of taxes can affect a business’s or individual’s credit rating, making it more difficult to obtain loans or other forms of credit in the future

6. Supporting government services

Taxes help fund government services and programs that benefit society, such as education, healthcare, and infrastructure

Overall, being on time with your taxes is important to avoid additional charges, prevent tax fraud, and keep your finances organized.

How to generate challan on the GST portal?

Go to the official GST Portal
Click on “Login”, and fill in your details for your GST login
Then click on “Services”, from the drop-down list select “Payments”, and then click on “Create Challan”

A “Create Challan” tab will open, enter your “GSTIN/Other ID” and click on “Proceed

Then you have to select the reason for challan, you have two options: “monthly payment for quarterly return/any other payment”, choose the one that suits you, and click on “Proceed”

You will now be directed to a page where you can create a GST challan by filling in the required details like CGST, IGST, CESS, etc. After filling in the details, select the payment method via which you want to pay. In this scenario, click on the “NEFT/RTGS” option, and from the drop-down list select the remitting bank

Then you’ll see three options in the bottom left, if you want to go back to the previous page and change your reason then click on “Edit Reason”. If you want to make payment later and save the changes then click on “Save”. And if you want to proceed with the payment, click on “Generate Challan” review all the details carefully and click on “Download”. Your challan will be successfully generated

How to make GST payments online on the EnKash portal?

Now Pay Your GST In Just 3 Easy Steps With EnKash

Try NOW

Login on the EnKash platform using your mobile number/email and OTP. If you are new to the platform, register using your valid credentials
Go to the “GST Payments” tab under “Olympus”
Upload the generated challan
You will get OCR-based auto-read & verification for maker/checker approvals
At last, pay using a credit or other modes of payment

How to check your GST payment status on the GST portal?

To check your GST payment status, please follow the below steps:

Visit the official GST portal
Under “Services”, click on the “Payments” section and click on “Track Payment Status”

Challan

On clicking the “Track Payment Status” the following page will be displayed

Just fill in the GSTIN and CPIN of the challan you paid and click on “Track Status”
You will then be able to see the current status of your payment

How can EnKash help?

Unlike the old times, now paying GST online is very convenient and time-efficient for both the public and the government. By following all the steps given above, you can now easily make GST challan online payments through both the GST and EnKash portal.

Just remember to keep your login credentials handy, and carefully fill in the tax period, the type of tax you want to pay, and select your mode of payment. It is also important to keep a record of your payment, including the confirmation message and reference number, for your records. EnKash is a spend management platform that manages a business’s transactional needs. If you are looking for an all-in-one platform for GST challan payment online, explore EnKash today!

FAQs:
- What is a GST challan?
A GST challan is a document used to pay Goods and Services Tax (GST) to the government. It specifies the amount of GST being paid, the tax period, and other relevant details.
- Why is it important to pay GST challan online on time?
Paying GST challan online on time is crucial to avoid penalties, interest charges, and legal complications. It also contributes to the government’s funding of necessary services and programs.
- Who needs to pay GST challan online?
Any individual or business registered under GST must pay GST challan online for their tax liabilities.
- What are the different payment methods for GST challan online?
You can pay online using debit/credit card, net banking, NEFT/RTGS, or through a bank challan.
- What happens if I miss the deadline for GST challan payment?
Late payments incur penalties and interest charges. The specific amount depends on the delay and the tax amount.
- Do I need to register on the GST portal to generate a challan?
Yes, you need to register on the GST portal and obtain a GSTIN for generating challans. You also use the “Other ID” option if you’re an unregistered applicant.
- What information do I need to provide when generating a challan?
You need to provide details like your GSTIN, tax period, tax type, amount payable, and payment method.

Tags GST Payment Status, GST E payment, Online payment of GST, Payable and Expenses, How to pay GST online, Pay gst challan online

Growth Guide

Enhance your Productivity with Vendor Payment Automation

Post author By Surbhi Mehtani
Post date September 23, 2022
6 Comments on Enhance your Productivity with Vendor Payment Automation

It is rightly said that one must have a supplier relationship of continuous improvement to create an agile process of procuring to pay process flow and in turn, boost business growth and productivity. Vendor payment automation will help streamline this process.

Automate accounts payable & receivable with EnKash

As companies expand, it creates their unique workflow with operations at each phase. With growth as a constant target, it becomes difficult for organizations to do everything in-house. Hence, the concept of outsourcing products and services played a key role for companies to strike a balance by reducing the workload on their internal teams and by effectively managing both the accounts payable and receivable workflows.

Now, it is not simple to work with third-party service providers since it involves challenges such as;

Risk assessment: When an organization depends upon third-party vendors to run the business operation, a certain amount of security concern is inevitable. To mitigate such risk factors, certain policies should be followed in daily transactions. This can empower high-risk collaborations with a strong framework covering the financial, legal, and brand value of the company.
Price negotiations: Vendor pricing should match with the allocated budget of the company. Hence, billing frequency, types of payment methods should be transparent and properly communicated. Both parties should review and agree to the terms of the contract.
Visibility issue: Data and transactional clarity improves trust in a business relationship. Hence, a centralized data storage solution can improve resource allocation and the overall efficiency of the vendor.
Cost optimization: The aim of organizations is to control the overall vendor costs while improving vendor performance.
Long-term relationship: Most importantly, companies focus on establishing a valuable partnership with the vendor company.
Variations in vendor selection criteria: It can cause disputes that can harm vendor relationships in the long run.

Criticalities of vendor management and vendor payment

Here, it is essential to understand the concept of vendor management and the vendor payment process. Vendor management involves structuring, sustaining, and establishing mutually-beneficial supplier relationships. While making payments to vendors is part of a company’s accounts payable workflow and it is the most crucial and final step in the purchase-to-pay cycle. The payment cycle includes the following:

Receiving payable details
Verifying the accuracy
Generating the invoice
Getting the approval
Making the payment

Mishandling any one step of this cycle may lead to distrust and loss of brand value. Thus, prompt and systematic management of this vendor payment automation can ensure a fruitful relationship with the vendor company supplying products and services for a smooth business workflow.

In fact, vendor management being a multidisciplinary business practice involves several teams across business functions within the company. Monitoring all of that on a daily basis is not only stressful but also time-consuming and may create a hindrance to the overall growth of an enterprise. Hence, organizations are relying upon implementing strategies to handle the entire process of vendor management efficiently which also includes effective management of vendor accounts payable cycle.

As one focuses on the best practices for business it is pertinent to mention that vendor management and vendor payment automation are the two most critical aspects of any business, big or small. The tracking and timely disbursal of vendor payment invoices carve a part of the success story of the company.

Enhance your Productivity with Vendor Payment Automation — Benefits of Vendor Payment Automation

Make a difference with the strategic vendor payment process

According to secondary research, one in twelve businesses do not monitor their payment processes and forty-seven percent of companies pay one in ten invoices late.

Schedule vendor payment
Automate the accounts payable process
Regular updates of account for accuracy
Electronic types of payment methods
Optimize the finances with a real-time overview

Transition with innovative solutions

Earlier organizations use to depend upon spreadsheets for calculating vendor payment details, but currently, companies are embracing artificial intelligence (AI) considering the benefits it can bring to a business. As a solution to vendor management and vendor payment, AI-based automation solutions and data analysis are widely implemented by companies to optimize the business process of accounts payable and receivable workflow and finance operations related to types of payment methods.

A company can truly ease the complexities associated with vendor payments and enhance organizational productivity with the digital effort. Let’s understand the benefits that a company can enjoy by implementing AI-based vendor payment management solutions.

Automation of the approval process
Digitalization of data makes it audit-ready
Automation of payment initiations
Smooth tracking of transactions
Effortless and error-free vendor management
Enhance real-time reporting capabilities
Create unique payment cards for each vendor

Power of innovation

A company must choose a solution with scalable features that can continue to ensure workflow automation while the company is growing. Integrated solutions are another aspect that ensures the non-duplication of invoices and payment entries in the accounts payable cycle. The focus is on simplifying complex financial operations with real-time dashboards and automation of vendor payments.

Aiming towards success!

Hence, it will not be incorrect to conclude that globalization has diminished geographical boundaries and brought companies and vendors around the world together. This has created an ecosystem of its kind nurturing best practices to ensure the deliverance of maximum value to the organization while managing vendor payments efficiently. Thus, Enkash is taking a step towards sustainability through effective management of vendor payments.

To know more, visit EnKash.com. You can also click below on Signup Now and we will reach out to you soon.

Tags Payment reconciliation, Vendor payment journal entry, Vendor payment portal, Online payment of GST, Payable and Expenses, Vendor payment, Vendor reconciliation, Vendor payments

Effortlessly streamline your business payments and collections

Empower your finances with purpose-based cards

Optimize business spends with OfEx

Effortless recognition, and endless rewards in one place

Effortlessly streamline your business collections

Manage all your business payments seamlessly