How to Make Payment of GST through Debit Card?

Bio

An Alumnus of IIM and DU with almost a decade of experience in the banking and finance sectors. I had the opportunity to work with all types of institutions in BFSI ecosystem like Bank, NBFC, Fintech, Consulting and Auditor. I started my professional journey at KPMG and subsequently worked in leading names of the BFSI sector including Ujjivan Bank, Vistaar Finance. Currently building a fintech startup ( PICE) by handling alliances, compliance and creation of GTM strategy for payments and credit product.

13 Sep 24
5 mins

Saurabh Agrawal

08 Mins
13-09-24

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Table of Contents

What is GST?
Process of Paying GST Through Debit Cards
Payment Gateways Charges of Debit Cards for Different Banks
Conclusion

Unified Tax: GST simplifies compliance by merging multiple indirect taxes into one system.
Debit Card Payments: GST payments via debit cards are currently available in 10 Indian states.
Payment Steps: Pay GST through the portal by selecting ‘Net Banking’ and following easy steps.
Transaction Fees: Banks charge 0.9%–1% + 18% GST for debit card payments over ₹2,000.
Digital Shift: Debit card GST payments support India's move toward simpler, digital tax processes.

Payment of Goods and Services Tax (GST) is an obligation for businesses and individuals to maintain proper tax compliance and contribute to the nation's wealth. Various payment methods are involved in this process, but payment of GST through debit card ensures a seamless process.

In this blog, we will discuss the entire process of GST payment through debit cards, focusing on the payment gateway charges of debit cards for different banks across India.

What is GST?

GST is a kind of indirect tax that has been introduced as an alternative to various indirect taxes. Effective from July 1^st, 2017, GST is a unified tax system that subsumes excise duty, service tax, VAT, etc.

GST, as the name suggests, is a tax levied upon the supply of goods and services. It is imposed at the end of every stage of the supply chain. It is a centralised indirect tax system, making tax administration easier and tax compliance better.

The rate of GST remains the same across the country. It merges central and state taxes, thus collecting one single tax from the people.

Process of Paying GST Through Debit Cards

In India, only 10 states have the facility of GST payments through the available debit cards. These 10 states are - Goa, Odisha, Delhi, Gujarat, Assam, Himachal Pradesh, Maharashtra, Haryana, Kerala and Madhya Pradesh. This is the only constraint as of now in the online mode of GST payment.

Follow the steps below to pay GST through debit cards:

Step 1: Visit the official portal of GST and log in using your username and password.

Step 2: Select ‘Net Banking’ as the 'Mode of E-Payment’ and choose the bank name.

Step 3: Review the terms and conditions, verify the checkbox, and select the ‘Make Payment’ option.

Note: If you wish to view the list of banks which you have used to make your transactions previously, you can select ‘Preferred Banks’ as ‘'Mode of E-Payment’. Proceed to choose the bank of your preference, review the terms and conditions, and verify the checkbox. After this, tap on the ‘Make Payment' button.

Step 4: The page will redirect to the portal of your chosen bank account.

Step 5: After successful payment, the GST portal will display the message ‘Payment Successful.’

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Payment Gateways Charges of Debit Cards for Different Banks

It is important for taxpayers to be aware of the transaction charges associated with this payment mode. The charges vary according to the type of card and payment channel. Users should also know that GST at an 18% rate would be levied upon these charges.

Therefore, they should factor them into their payment considerations. The following are the payment gateway charges of a few banks:

Payment gateway charges of debit cards for State Bank of India are as follows:

Payment Channel	Type	Amount	User Charges
Debit Card	Master/Maestro/RuPay/SBI Maestro/Visa	Till ₹2,000	Nil
Debit Card	Master/Maestro/RuPay/SBI Maestro/Visa	₹2,001 and above	1% of the transaction amount +GST

Payment gateway charges of debit cards for ICICI Bank are as follows:

Payment Channel	Type	Amount	User Charges
Debit Card	Any	Till ₹2,000	Nil
Debit Card	Any	₹2,001 and above	0.9% on transaction value + GST

Conclusion

The online mode of GST payment aligns with the wave of digital transactions. Moreover, it provides taxpayers with a feasible avenue of GST payment. This system promises to expand to all the states in India.

Therefore, the knowledge of the nuances associated with the procedure and the applicable charges is crucial for businesses and individuals. The financial sphere is constantly evolving. Payment of GST through debit card is just another stepping-stone towards making taxpaying a simpler process across the country.

💡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.

FAQs

Can I pay GST through a debit card?

Yes, GST payments can be made via debit cards, but this option is currently available in only 10 states, including Goa, Delhi, Maharashtra, and Gujarat. You can pay GST by selecting ‘Net Banking’ on the GST portal and following the required steps to complete the transaction.

Are there any charges for paying GST through a debit card?

Yes, most banks impose gateway charges for debit card transactions above ₹2,000. For example, SBI charges 1% on the transaction amount, while ICICI Bank charges 0.9%, plus GST at 18%. Transactions under ₹2,000 are typically free from additional charges.

What happens after I make the GST payment?

Once the payment is successfully processed, the GST portal will display a confirmation message—‘Payment Successful.’ The payment is credited to your electronic cash ledger, which can be used for tax, interest, or penalty payments.

Which banks support debit card payments for GST?

Many banks, including State Bank of India (SBI) and ICICI Bank, allow GST payments through debit cards. However, ensure that your state supports this option, as only 10 states currently have this facility for debit card payments.

What if I encounter issues while paying GST through my debit card?

If you face any issues while making a GST payment via debit card, such as transaction failure or incorrect deductions, you should first contact your bank for assistance. You can also raise a complaint through the GST portal for support in resolving payment issues.