How to make Payment of Demand under GST?

Author
By Sakshi Shah on February 18, 2019

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 on the GST Portal.

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

What are the Steps to make Payment of Demand on the GST Portal?

  1. Log in to the GST Portal
  2. Click on Services > Ledgers > Payment towards Demand
  3. You can view the details of the Outstanding Demand with a Demand ID
  4. To view the details of tax, fee, interest or penalty, click on the amounts shown under IGST, CGST, SGST, and Cess
  5. Select the Demand ID for which you want to make the payment
  6. The screen displays details of 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 pay against the demand
    • Cash Ledger Balance – You can view the cash balance as on 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 as on the current date. Scroll right to enter the amount you want to pay by utilizing the credit ledger balance
  7. After entering all the amounts, click on SET-OFF
  8. A message appears to confirm the action of utilizing balance from cash ledger and credit ledger. The amounts once utilized cannot be reversed
  9. The screen displays a success message once the payment is successful and generates a Payment Reference Number
  10. All the balances in E-Credit Ledger, E-Cash Ledger, and E-Liability Ledger are updated