TaxTMI 
TaxTMI 
Proposed Payment Process
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....roposed Payment Process <br>GST<br>Dated:- 19-12-2015<br><BR>PROPOSED PAYMENT PROCESS PRESENTATION PLAN * Broad Features * Tax Types & Modes of Payment * Stakeholders * Basic Features * Workflow for Payment under various Modes * Features of Accounting Process * Proposed Accounting system * Banking arrangements * Reconciliation of receipts * Redressal of grievances BROAD FEATURES * Electronic payment process- no generation of paper at any stage * Single point interface for challan generation- GSTN * Ease of payment three modes including CC/DC & NEFT/RTGS * Common challan form with auto-population features * Use of single challan and single payment instrument * Common set of authorized banks * Payment throu....
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....gh any bank * Common Accounting Codes TAX TYPES & MODES OF PAYMENT * Under GST, 4 types of Taxes to be paid- CGST, IGST, Additional Tax and SGST * Three Modes of Payment * Electronic including CC/DC (Mode I) * Over The Counter Payment (for Payments upto ₹ 10,000/-) (Mode II) * Payment through RTGS/NEFT (Mode III) * Payment can be accepted by Departmental officers in enforcement cases only STAKEHOLDERS * Taxpayer * GSTN (Goods and Service Tax Network) * Authorized banks * one e- FPB (Electronic Focal Point Branch) for each bank (in Mode I & II) to maintain government account and report all receipts * all branches for receiving Over the Counter Payments * one or more front end service branch …. STAKEH....
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....OLDERS * All Banks- for NEFT/RTGS Mode of payment * Reserve Bank of India * e- FPB (in Mode III) * Aggregator for accountal & reconciliation of receipts * Accounting Authorities of Centre & States * Tax Authorities of Centre & States BASIC FEATURES…. * Electronically generated Challan from GSTN for all 3 modes containing a unique 14-digit Common Portal Identification Number (CPIN) for each challan * Challan can be generated by * Taxpayer * His authorized representative * Departmental officers * Any other person paying on behalf of taxpayer * Certain key details like name, address, email, GSTIN of payer to be auto-populated * Single challan / instrument for payment of all four types of taxes * Challan on....
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....ce generated to be valid for 7 days * Time of payment: from 0000 hrs. to 2000 hrs. * Proposed workflow of RBI's e-Kuber model to be followed for payment, accounting and reconciliation: * Accounting Authorities to interact directly with RBI & not with Authorized banks in case of discrepancies found during reconciliation * System of electronic Personal Ledger Account (cash ledger) on GSTN for each taxpayer (20 pages) * One e-FPB per Authorized Bank (in Mode I & II) / RBI (in Mode -III) * GSTN to be anchor in payment process with responsibility for information flow to various agencies * RBI to act as aggregator and anchor of flow of fund and information about receipts WORK FLOW FOR PAYMENT UNDER MODE -I …. E-payment mode....
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.... through authorized banks (internet banking , CC/DC): * Generation of e-Challan at GSTN * Tax payer to select e-payment mode * Net Banking * Credit/Debit Card of any bank * Tax Payer to choose Authorized bank in case of Net Banking * Payment gateway of authorized bank (or their SPVs) in case of CC/DC * Credit Card proposed to be used by taxpayer to be registered at GSTN - as an additional safety check to eliminate the issue of charge back * GSTN to direct the taxpayer to the website of selected bank/payment gateway * Alongside, GSTN to forward an electronic string to the selected bank carrying specified details of challan on real time basis * Taxpayer to make payment using the USER ID & Password provided by his bank *....
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.... On successful completion of transaction, e-FPB of bank to forward a confirmation electronic string (CIN) to GSTN on real time basis * GSTN to credit the Taxpayer's ledger * Copy of paid Challan to be available on GSTN for taxpayer (downloadable/printable) WORK FLOW FOR PAYMENT UNDER MODE -II …. Over the Counter Payment: * For small taxpayers for making payment upto ₹ 10,000/- per challan - by cash / DD / cheque drawn on same bank or on another bank in the same city * Tax payer to tender only one instrument to pay one or more type of tax * For cheque payment, name of authorized bank & its location to be mandatorily filled in challan * On real time basis, GSTN to share challan details with Core Banking System (CBS)....
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.... of the selected authorized Bank * Taxpayer to approach the branch of the authorized bank for payment of taxes along with the instrument or cash * In case of cash / same bank instrument a unique transaction number (BTR/BRN) will be generated immediately by the authorized bank's system and given to taxpayer * Authorized bank to send receipt information (CIN) to GSTN on real time basis * In case of instruments drawn on another bank in the same city, payment would not be realized immediately * Authorized Bank to inform GSTN on real time basis in two stages * when an instrument is given OTC - to send an electronic string to GSTN containing specified details * second acknowledgement - after the cheque is realized with 3 additional ....
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....details * Similarly, bank to issue acknowledgement to taxpayer in two steps * Acknowledgment of cheque immediately * Upon realization of cheque, issuance of BTR / BTN * GSTN to credit the Taxpayer's Ledger WORK FLOW FOR PAYMENT UNDER MODE -III…. Payment through NEFT/RTGS from any bank * To be made operational after a pilot run by RBI * For taxpayers: * not having a bank account in any of the Authorized Banks * having a bank account in any of the Authorized Banks * No limit on amount to be paid through this mode * Payments to be collected by RBI directly * RBI to perform the role of e-FPB also * Challan and NEFT/RTGS mandate form generated on GSTN * NEFT/RTGS mandate form to have validity period of CPIN pri....
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....nted on it * In challan, the field for name of Authorized Bank to be auto-populated as RBI * NEFT/RTGS mandate form will have certain information auto-populated: * CPIN in "Account Name" field * 'GST Payment' in "Sender to Receiver Information" field * Taxpayer to print a copy of Challan and NEFT/RTGS mandate form from GSTN & approach his bank for payment * Amount indicated for remittance to be transferred by bank to the designated account of the government in RBI along with challan details and a Unique Transaction Reference (UTR) Number * RBI to validate payments against each challan with UTR received from remitter bank * RBI to report receipt of payment to GSTN (CIN) on real time basis through an electronic string with sp....
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....ecified details * GSTN to credit the Taxpayer's ledger FEATURES OF ACCOUNTING PROCESS…. * Authorized Banks to send list of CIN-wise details (electronic luggage file) for each type of Tax (CGST, IGST, AT & SGST) per day to RBI and Accounting Authorities at End of Day (EOD) * RBI through its e-kuber system to consolidate the lists received from all authorized banks, debit their accounts and correspondingly credit Tax accounts of GOI / respective State Governments * RBI to send digitally signed one e-scroll for each type of Tax (CGST, IGST, AT & SGST) per day (39) to Accounting Authorities of Central Government and State Governments & GSTN on T+1 basis * GSTN to send reconciled data (challan data from Authorized Banks and e-s....
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....croll from RBI) to Accounting Authorities at EOD * For any discrepancy noticed, accounting authority to generate a Memorandum of Error (MOE) & send to RBI * RBI to resolve the discrepancy in consultation with the Authorized Bank * RBI to report the corrected data to respective Accounting Authority & GSTN * Taxpayers Master data to be provided by Tax Authorities to Accounting Authorities for mapping of payment details jurisdiction wise PROPOSED ACCOUNTING SYSTEM * Four different Major Heads of accounts to be opened for each tax along with underlying Minor Heads to account for various taxes & other receipts like interest, penalty, fees & others * Standardized uniform Accounting Codes for all taxes under GST regime among Centre, S....
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....tate & UTs to facilitate settlement of IGST on the basis of centralized reporting * Common Accounting Codes for Centre & States BANKING ARRANGEMENTS * Common set of Authorized Banks comprising existing authorized banks of the Central Government & all State Governments/UTs (presently 26) * Certain minimum standards to be met by banks to become authorized banks * A system of penalty/incentive proposed for reporting of error free data * Payments through non-authorized banks permitted (NEFT/RTGS) RECONCILIATION OF RECEIPTS * Use of only system generated challans - no re-digitization by any actor in the entire work flow * CPIN to be generated by GSTN -- to be used as a key identifier up till receipt of payment by Bank * CIN (a....
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....ctual indicator of receipt of payment) to be generated by collecting Bank -- to be used as a key identifier thereafter for accounting, reconciliation, etc. * Accounting Authorities to play a paramount role in reconciliation - * Accounting on the basis of RBI data * Reconciliation on the basis of GSTN and bank data GRIEVANCE REDRESSAL * In OTC mode if cash ledger of taxpayer not credited within three days- approach bank where instrument presented * In RTGS/NEFT mode if cash ledger of taxpayer not credited within three days- approach bank where taxpayer's account is * Each e-FPB required to have front end service branch to resolve payment related issues<BR> News - Press release - PIB....