GST Payment via UPI: Seamless Tax Compliance for Businesses
This major update by GSTN enhances compliance ease, especially for small businesses and professionals preferring fast, mobile-friendly solutions.
Why UPI for GST Matters
UPI (Unified Payments Interface), backed by the National Payments Corporation of India (NPCI), has revolutionised digital payments in India. Its integration into the GST portal marks a new phase in taxpayer convenience:
Key Benefits of GST payment via UPI:
- Instant payments: No wait time like NEFT/RTGS
- Available 24×7: Weekends and holidays included
- Secure & mobile-friendly: No need for internet banking logins
- Supports small taxpayers: Ideal for proprietors and MSMEs using UPI apps
As per RBI’s June 2025 data, UPI clocked over 13.5 billion transactions—proving its scale and acceptance across sectors.
Official Advisory on UPI Integration
The GST Network (GSTN) issued an official advisory on 19 January 2024, confirming that taxpayers can now use:
- UPI
- Debit Cards
- Credit Cards
in addition to existing options like Net Banking and NEFT/RTGS for GST challan payments.
Applicable Platforms:
- All authorised banks via GSTN’s payment gateway
- BHIM UPI, PhonePe, GPay, Paytm, etc.
How to Make GST Payment via UPI (Step-by-Step)
Step 1: Log in to the GST Portal → www.gst.gov.in
Step 2: Navigate to Create Challan under Services → Payments
Step 3: Enter payment details and select your bank
Step 4: Choose “UPI” as payment mode
Step 5: Scan the QR code or enter UPI ID on your phone
Step 6: Approve and complete the transaction
Pro Tip: Save the Challan Reference Number (CRN) and Payment Reference Number (PRN) for audit and reconciliation.
GST, UPI & Ease of Doing Business
This UPI rollout for GST payments is part of India’s broader push for digital governance:
| Parameter | Before 2014 | 2024 Status |
|---|---|---|
| Ease of Doing Business Rank | 142 | 63 |
| Compliances Reduced | – | 39,000+ |
| Criminal Provisions Decriminalised | – | 3,400+ |
| Real-time Tax Payment Options | Limited | UPI, Cards, Net Banking |
This shift is designed to reduce friction, particularly for startups and small traders with limited banking access.
Legal Reference & Compliance Notes
- GSTN Advisory Date: 19.01.2024
- Legal Base: Rule 87(3) of the CGST Rules, 2017 allows for prescribed modes of payment.
- Banks Integrated with UPI for GST: Only authorised banks listed by RBI and NPCI can facilitate UPI-based GST payments.
For a full list, refer: RBI – Authorised Payment Systems
Expert Insight from Efiletax
“We recommend UPI for small business clients who face delays in Net Banking or NEFT payments. It’s secure, fast, and compliant – just ensure your mobile UPI app is linked to the bank account used for GST registration.”
FAQs on GST UPI Payments
Q1: Can I use UPI to pay late fees and interest on GST?
Yes. UPI can be used to pay any amount under a GST challan—tax, interest, late fee, penalty, etc.
Q2: What if UPI payment fails but amount is debited?
Check your GST portal for status. If not updated in 2 hours, raise a grievance via www.gst.gov.in with your PRN and bank screenshot.
Q3: Is UPI payment allowed for all GST types (CGST, SGST, IGST)?
Yes. The payment is distributed accordingly by the portal post-validation.
Final Thoughts
GST payment via UPI is not just about ease—it’s a step towards true digital governance. No login headaches, no banking windows, no cut-offs. Just scan, pay, and comply.
Start using UPI for your next GST challan. And if you need help filing GST returns or managing GST payments—Efiletax is just a click away.
👉 File Your GST with Efiletax Now
Summary
GST payment via UPI is now enabled on the GST portal, allowing faster, secure, and mobile-friendly tax payments. Launched by GSTN in January 2024, this update simplifies compliance for small businesses and aligns with India’s push for digital tax governance and ease of doing business.