GST Payment Online: How to Create a Challan & Pay GST (2026)

Paying GST online is one of those tasks that feels intimidating the first time and then becomes a five-minute routine. The government's portal at gst.gov.in handles the whole thing, and once you understand three ideas — the cash ledger, the credit ledger, and the challan — the process makes sense. This guide walks through exactly how to create a GST challan, the payment modes available in 2026, when your money is due, and what late payment actually costs.

The two ledgers: where your GST money lives

Every registered taxpayer has three electronic ledgers on the GST portal. Two of them matter for payment:

  • Electronic cash ledger. This is your wallet on the portal. When you create a challan and pay, the money sits here until you use it. It is split by head — IGST, CGST, SGST/UTGST and cess — and within each head by tax, interest, penalty, fee and others.
  • Electronic credit ledger. This holds your input tax credit (ITC) — the GST you already paid on your purchases. You use this credit to reduce your output tax before touching cash.

There is also an electronic liability ledger that records what you owe. When you file your return, the portal offsets your liability first against available ITC in the credit ledger, and whatever remains is drawn from the cash ledger. That is why the practical rule is: pay only the gap that ITC does not cover.

Fund the cash ledger before you file, not after

You cannot file GSTR-3B unless the cash ledger already holds enough to clear the tax that ITC does not cover. Create and pay your challan first, then file. Trying to do it the other way around on the due-date evening is how people miss deadlines.

How ITC offsets your liability

Understanding this order saves you from overpaying in cash. Your output GST for the period is the tax you collected on sales. Against it, you set off ITC from purchases. The credit in each head is applied in a set order laid down in the law, with IGST credit used first and then CGST and SGST credit against their respective liabilities. Only after credit is exhausted do you pay the balance in cash.

For example, if your output liability for the month is Rs 90,000 and you have Rs 60,000 of ITC, you pay just Rs 30,000 in cash via a challan. The cleaner your purchase records and the more your suppliers file their returns on time, the more ITC actually shows up in your credit ledger — which is one more reason to keep tidy books. If your invoicing is disorganised, reconciling ITC becomes painful, so start from clean records. Our guide to a valid GST bill format covers what makes an invoice ITC-eligible.

What a GST challan actually is

A GST challan is Form GST PMT-06. It is simply an instruction to deposit money into your cash ledger. Every challan gets a unique 14-digit number called the CPIN (Common Portal Identification Number) when you generate it, and a CIN (Challan Identification Number) once the bank confirms payment. A generated challan is valid for 15 days; if you do not pay within that window it expires and you regenerate it.

Step by step: creating and paying a GST challan online

  1. Log in (or pay pre-login). Go to gst.gov.in and sign in with your credentials. You can also create a challan before logging in by entering your GSTIN, which is useful for a quick payment.
  2. Open Create Challan. Navigate to Services then Payments then Create Challan.
  3. Enter the amounts. Fill in what you owe under each head — IGST, CGST, SGST/UTGST and cess — and within each, split it across tax, interest, penalty, fee and others. If you are on QRMP for the first two months of a quarter, you can use the self-assessment method or the fixed-sum 35% option the portal offers.
  4. Choose a payment mode. Select net banking or card (E-Payment), UPI, NEFT/RTGS, or over-the-counter.
  5. Generate the challan. The portal creates the CPIN and shows the challan. Check the figures carefully before proceeding.
  6. Pay. For net banking or UPI you are taken to your bank or UPI app and confirm instantly. For NEFT/RTGS you download a mandate form and transfer from any bank. For OTC you take the printed challan to an authorised branch.
  7. Confirm it landed. After a successful payment the amount appears in your electronic cash ledger, and you can download the paid challan as proof.

GST payment modes in 2026

  • Net banking / debit or credit card. Instant credit to the cash ledger. The list of authorised banks is on the portal, and card payment is now supported through authorised gateways.
  • UPI. Now a mainstream option for GST — quick, works from most banking apps, and reflects immediately.
  • NEFT/RTGS. Useful if your bank is not in the authorised net-banking list or for large amounts. You generate a mandate and transfer from any bank; credit takes a little longer, so do not leave it to the last hour.
  • Over the counter (OTC). Cash, cheque or demand draft at an authorised branch. Capped at Rs 10,000 per challan per tax period, so it suits only very small liabilities.

When GST payment is due

Your due date depends on how you file:

  • Monthly filers. Tax is due with GSTR-3B by the 20th of the following month.
  • QRMP scheme (turnover up to Rs 5 crore). You pay for the first two months of the quarter by the 25th of the next month using a PMT-06 challan, then file the quarterly GSTR-3B by the 22nd or 24th of the month after the quarter, depending on your state group.

Composition-scheme taxpayers pay quarterly via CMP-08 and file an annual return instead. If you are unsure which returns apply to you, our GST return filing guide lays out the full calendar.

Interest runs from the day after the due date

If you pay tax even a day late, interest of 18% per year accrues on the unpaid amount from the day after the due date until the day you deposit it. It is calculated on the net cash liability, not the full tax, but it adds up — and unlike tax, interest and late fees can never be paid using ITC. They always come from cash.

What late payment costs

Two separate charges apply when you are late:

  1. Interest at 18% per annum on the unpaid tax. For habitual delay or wrong ITC claims the rate can be higher, but 18% is the standard for delayed payment.
  2. Late fee for filing GSTR-3B or GSTR-1 after the due date — Rs 50 per day (Rs 25 CGST plus Rs 25 SGST), reduced to Rs 20 per day for a nil return, subject to per-return caps that scale with turnover.

Beyond the money, chronic default has real operational cost: your ability to generate e-way bills can be blocked if returns are pending, you may be unable to file the next period until the current one is cleared, and repeated non-compliance invites notices and, eventually, suspension of registration.

A note for composition-scheme taxpayers

If you are registered under the composition scheme, your payment rhythm is different. You do not collect GST from customers or claim ITC; instead you pay tax at a flat rate on your turnover. Payment is quarterly, made through Form CMP-08, which is a self-assessed statement-cum-challan due by the 18th of the month after each quarter. You still generate the challan on the same portal, but there is no ITC set-off to worry about — the whole liability is paid in cash. Keep this distinction clear, because trying to claim credit or issue tax invoices under composition is a common and avoidable mistake.

Common GST payment mistakes to avoid

  • Paying under the wrong head. Money deposited under CGST cannot be used to settle an IGST liability directly, and cross-utilisation follows strict rules. Always split the challan by head to match your actual liability so nothing gets stranded in the cash ledger.
  • Leaving NEFT/RTGS to the last hour. Bank transfers can take time to reflect. On the due-date evening, prefer net banking or UPI, which credit instantly.
  • Letting the challan expire. A generated PMT-06 is valid for 15 days. If you generate it early and forget, you will need to regenerate before paying.
  • Assuming ITC covers interest. It never does. Interest, penalty and late fee are always cash, so budget for them separately when you are paying late.

Practical tips to never miss a payment

  • Calculate your liability a few days early so you know the cash figure and can arrange funds.
  • Keep your ITC reconciled through the month so the credit ledger is accurate — surprises on the 19th are stressful.
  • Prefer net banking or UPI for instant credit; use NEFT/RTGS only with a buffer.
  • Save every paid challan. The CIN and paid PMT-06 are your proof if a mismatch ever comes up.
  • Bill cleanly all month so month-end totals are correct. A tool that keeps your GST invoices, tax splits and totals in one place turns filing day into a formality rather than a scramble.

Once you have done it two or three times, GST payment stops being a chore. Fund the cash ledger with a challan, let ITC absorb what it can, pay the gap, and file on time. Do that every period and you stay clean, avoid interest, and keep your registration in good standing.

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