Can GST Be Paid By Using A Credit Card?

On-time GST payment is a must if you want to avoid penalties and legal actions. There are various GST payment methods available, including the option to use the credit card payment method. In addition, platforms like Pice simplify and speed up the GST payment process.

This blog highlights the benefits and methods of GST payment through credit cards along with other crucial details. Read on to know more.

Benefits of GST Payments by Credit Cards with Pice

The Pice platform is specifically designed for venture owners to manage, reconcile and earn rewards when making GST payments on time through it. There are several benefits of paying GST via this platform that have helped it earn immense popularity among over one lakh business owners.

Some of the significant advantages of using the Pice app for making GST payments by credit card are as follows:

• Simplified User Interface: The user interface of the Pice app is simple and convenient. Thus, you can easily navigate to the appropriate section of this app and initiate your GST payment process.
• Numerous Rewards Present: You can earn exclusive rewards upon making a GST payment by credit card for your venture via Pice. These rewards can be in the form of cashback or discount coupons on various products or services.
• Making Payments is Easy: It is effortless to make your GST payment via credit card using this platform. All you will have to do is upload the challan and enter your credit card details to complete the electronic payment. Also, there are various modes of payment available, you can choose from.
• Minimal Processing Fee: Although you will have to pay an extra amount during the process of GST payment using a credit card, it is not significant. Hence, you can save a certain amount by paying a lower processing fee on your transactions.
• Instant Transfer of Money: The money is transferred in no time when making payments. So, you can easily make the GST payments on time even on the last day of the due date and avoid paying penalties for delayed payments.
• Lowest Rates on Transactions: The transaction rates associated with GST payment via credit card on the Pice app are minimal. This allows you to save yourself from paying hefty extra charges.
• Quick Access to Funds: You can easily access funds from your credit limit to pay off the GST amount. This ensures that you do not have to worry if you do not have adequate money to complete the process of GST payment instantly.
• Availability of Credit Period: You can get a credit period based on your billing cycle upon paying off the GST amount using your card. Thus, you will have sufficient time to repay the amount borrowed for GST payments.
• Improved Credit Score: Using your credit card as a payment mode for GST and paying on time can significantly boost your credit score, benefiting you when applying for future loans.
• Ensures All Checks Are Present: The platform ensures that you have all the necessary approvals and checks needed when paying your GST via credit card. This simplifies the process of GST payments, making the process faster.

Making GST payments through Pice is simple and helps you manage your cash flow efficiently. All you will have to do is follow some hassle-free steps and complete the process of GST payment for your venture in no time. Furthermore, you can link credit cards from various government and private banks or financial institutions like Axis Bank, HDFC Bank, Bank of Baroda, ICICI Bank, IDBI Bank, Indian Overseas Bank, Punjab National Bank, UCO Bank for GST payment on the platform. 

How to Use Your Credit Card to Pay GST Online? 

Previously, the service tax on a credit card was 15%. However, with the introduction of the Goods and Services Tax (GST), this rate has increased to 18%. Despite this change, credit cards remain a convenient option for various transactions, including paying your GST.

Now, you can pay your GST using various online methods, including credit card, debit card, NEFT, RTGS, and more, by following a simple set of hassle-free steps.

The steps for paying GST using a credit card are as follows:

Step 1: Log in to your GST portal using the required credentials.

Step 2: Generate a challan according to your business type.

Step 3: Input all the necessary details on the portal accurately.

Step 5: Choose one of the available digital payment options and select your remitting bank.

Step 6: Once done, tap on the ‘Generate Challan’ button on your screen.

Step 7: Cross-check the details present on your screen and then download it.

Step 8: Navigate to the payments app and log in to the app using the required credentials.

Step 9: On the home screen, tap on the GST payment option as visible.

Step 10: Input all the details about your company regarding its type, category, subtype and GSTIN or PAN, that is asked for.

Step 11: Verify all the details that you have entered to ensure that there are no such mistakes.

Step 12: Next, you will have to upload the GST Challan that you have generated.

Step 13: The OCR-based auto reader available on the app will automatically read it.

Step 14: Once done open the Challan and check if all the details are in place.

Step 15: Check if the Challan is maker and checker approved

Step 16: Next, select the Challan and tap on the ‘Pay’ option from the available payment category on your screen.

Step 17: Enter your credit card details accurately. Click on the ‘Pay Now’ button.

Once done, your payments will be instantly processed via the payments app. You can even check the status of this payment on your dashboard itself in case you have any doubts about GST payments. However, before beginning with the steps, you should note the additional charges that you have to pay for processing GST payments.

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Charges or Fees Levied on Credit Card

Different companies offer various credit cards, each with its own set of charges. Based on the applicable charges, you can choose from credit cards issued by financial institutions and government banks like Axis Bank, HDFC Bank, Bank of Baroda, ICICI Bank, IDBI Bank, Indian Overseas Bank, Punjab National Bank and UCO Bank.

These extra charges can notably influence the overall costs that you will have to pay for the credit card. So, you need to consider them when choosing the right credit card and using it as a mode of payment for GST.

Some of these charges include:

• Charges for Annual Maintenance

This type of credit card fee usually varies from one another. In some cases, the credit card company waives these charges. However, you need to verify if they have waived off this charge only for a specific period or for over lifetime.

• Fees on Cash Withdrawal

Many credit card companies have set a specific withdrawal limit and card limits on their cards. For such scenarios, in addition to the interest rates, you will also have to pay a cash withdrawal fee. The cash withdrawal fee is mostly around 2.5%.

• Over-Credit Limit Charges

This is another type of charge associated with the credit card, which is usually incurred when you have surpassed your credit limit. Although it offers you the provision of spending beyond the set credit limit, the accumulation of these charges can lead to massive costs.

• Late Payment Penalty

At the time of billing, your credit card statement reflects the total amount of money that is due. In case you are not able to make the payment on time, you have to bear an additional amount as late payment charges which is usually a percentage of the due amount.

• Interest on the Amounts Due

If there is any outstanding payment on your credit card, you will need to pay a certain amount as interest on the amounts due. However, they are not applicable if you pay off the entire credit card due amount in one go.

• Goods and Services Tax

Usually, there is a specific GST percentage applicable to your credit card transactions as per the laws of the country. You will primarily have to pay GST during the payment of annual fees, interest charges processing charges and EMIs.

• Mark-Up Fee for Foreign Currency

Numerous banks and financial institutions support foreign currency payment with credit cards. However, they are often associated with additional fees, which vary from one card to another. Thus, you will have to pay extra money to process such transactions using your card.

Conclusion

With a clear understanding of how to make GST payments through a credit card and the associated details, you are all set to take advantage of this convenient method. However, it is important to remember that timely GST payments, regardless of the payment method, are crucial to avoid legal consequences.

To ensure compliance, consider setting up payment reminders or hiring an accountant to help you adhere strictly to GST laws.

💡If you want to pay your GST with Credit Card, then download Pice Business Payment App. Pice is the one stop app for paying all your business expenses.

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