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How to make Payment of Demand under GST?

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Sakshi Shah

E-Cash Ledger
E-Credit Ledger
E-Liability Ledger
GST
GST Portal
Input Tax Credit
Last updated on April 20th, 2021

If there is a short payment of tax or incorrect utilization of input tax credit under GST, the tax authority would initiate the procedure for demand and recovery of tax against the taxpayer. The details of such outstanding demand reflect under Part-2 ‘Other than Return Related Liabilities’ of the E-Liability Ledger.

The taxpayer can make the Payment of Demand in the following two ways:

Steps to make Payment of Demand on GST Portal

  1. Login to GST Portal

    Login to your account on the GST Portal with a valid username and password

  2. Navigate to ‘Payment towards Demand’

    Go to Services > Ledgers > Payment towards Demand

  3. Details of demand

    You can view the details of the Outstanding Demand with a Demand ID. To view the details of tax, fee, interest or penalty, click on the amounts shown under IGST, CGST, SGST, and Cess

  4. Select Demand ID

    Select the Demand ID for which you want to make the payment

  5. Outstanding Demand, Credit Ledger balance, and Cash Ledger balance

    Outstanding Demand:
    You can view the pending demand as on the current date for the specific demand ID. Scroll right to enter the amount you want to play against the demand
    Cash Ledger Balance:
    You can view the cash balance as of the current date. Scroll right to enter the amount you want to pay using cash ledger balance
    Credit Ledger Balance:
    You can view the input tax credit available on the current date. Scroll right to enter the amount you want to pay by utilizing the credit ledger balance

  6. Click on SET-OFF

    Enter all the amounts under respective heads and click on Set-Off. A message appears to confirm the action of utilizing balance from cash ledger and credit ledger. The amounts once utilized cannot be reversed.

  7. Success message

    The screen displays a success message once the payment is successful and generates a Payment Reference Number

  8. Ledger balances updated

    All the balances in E-Credit Ledger, E-Cash Ledger, and E-Liability Ledger are updated

FAQs

How does the taxpayer/Tax official know about outstanding demands?

The taxpayer/ Tax Official can get the information regarding outstanding demands from Electronic Liability Register (Part-II). Details regarding a particular demand, as well as for demands raised during a particular period can be known.

What are the pre-conditions for utilization of cash/ITC for payment of demand or any other amount due?

The pre-conditions for utilization of cash / ITC for payment of demand:

1. Demand ID is already generated and has an outstanding demand to be paid
2. User should have valid User ID and password and has necessary access for the same

Can a user make a part payment or multiple payments against a particular demand ID?

Yes, GST Portal allows the user for making part or multiple payments against a particular demand ID till the outstanding balance becomes zero.

Got Questions? Ask Away!

  1. Hey @TanyaChopra

    You can make the Payment of Demand in two ways:

    To know the steps to make Payment of Demand, you can read this article.