Para 14.2.10 — This section explains how GST payments are process

14.2.10.1 PROCESS FLOW OF ACCOUNTING

(a) GSTN provides digitally signed CPINs, created by the tax payers, at every 5-minute interval to the Central Accounting System (ARPIT).

(b) On payment by the tax payer, the authorized banks, after crediting Government account, generates CIN and shares the digitally signed CIN with GSTN.

(c) GSTN provides CIN data (containing only Major Heads) digitally signed by the Banks at five minutes’ interval to ARPIT.

(d) GSTN provides a consolidated EOD (End of Day) CPIN file to ensure that all CPINs have been received by Accounting Authority (for reconciliation).

(e) The GSTN provides a consolidated EOD (End of Day) CIN file (containing Major as well as Minor Heads) to ensure that all CINs have been received by Accounting Authority (for reconciliation).

(f) On receipt of the banks’ digitally signed CIN data through GSTN, the CIN is matched with the corresponding CPIN. The accounting entries are made based on the minor head-wise details available in the CPIN i.e. Debiting Major Head 8658-Suspense Accounts-‘108-Public Sector Banks Suspense’ or ‘138-Other Nominated Bank (Private Sector Banks) Suspense’ as the case may be, and Crediting the duty/tax heads concerning GST.

(g) The O/o Pr. CCA CBIC accounts for CGST, IGST, GST Compensation cess and UTGST (Union Territory-Without Legislature) heads only. The SGST and other UTGST amounts are accounted by the respective States and UTs Governments.

(h) The banks send a luggage file containing CIN wise details of all collections of the day to RBI on T+1 day for settlement. The EOD time for the banks is 8.00 pm. The collection details of previous day 8.00 pm to current day 8.00 pm are sent in the luggage file.

(i) RBI will receive bank luggage file from all authorised banks before 6:00 PM on T+1. Consequently it will debit Authorized bank’s account and correspondingly credit the indirect tax account of Government of India maintained in RBI.

(j) On T+1day, RBI based on the luggage file received from the banks, provides digitally signed e-scrolls (Major Head-wise) on hourly basis. The e-scrolls from RBI contain settlement made by the banks (i.e. collections made by the banks on the previous day) and the NEFT/RTGS transactions of RBI of the same day.

(k) The transaction (CIN) wise e-scroll is matched with the CPIN and CIN received already in the system and the following accounting entry is made for the matched transactions:-

8675 Reserve Bank Deposits-101-Central Civil- sub-heads-Reserve Bank (PSB) or Reserve Bank(Other Nominated Bank-Private Sector Banks. (as the case may be) Debit

8658 –Suspense Accounts-108-Public Sector Bank Suspense or 138-Other Nominated Bank (Private Sector Banks) Suspense (as the case may be) (-) Debit

(l) CIN Transactions received in the e-scroll only are booked under RAT (Receipts Awaiting Transfer) of concerned Major head and Memorandum of Error (MoE) is generated by the system.

8675 Reserve Bank Deposits Debit Receipt Awaiting Transfer (RAT) 0005/0008/0009 Credit

14.2.11. BANK RECONCILIATION PROCESS- MEMORANDUM OF ERROR (MOE) The Bank Reconciliation in GST system is fully electronic. A separate module of MoE has been developed by RBI in consultation with Pr. CCA, CBIC (Central Accounting Authority of GST) by integrating of RBI’s -e-Kuber system with the ARPIT Portal of Central Accounting Authority.

Four types of mismatches can occur: Case 1. CIN reported by RBI but not reported by GSTN (Invalid CIN)

Case 2. CIN reported by Bank (through GSTN) but not reported by RBI (Missing CIN) Case 3. Amount reported by RBI is more than the amount reported by the GSTN. Case 4. Amount reported by RBI is less than the amount reported by the GSTN

14.2.11.1 Case 1: CIN reported by RBI, but not reported by GSTN (Invalid CIN) There are three possible scenarios:

(a) Bank has not reported CIN to GSTN/ARPIT but reported it to RBI.

(b) Bank reported CIN to GSTN/ARPIT but the same has been rejected by GSTN/ARPIT due to Amount Mismatch with CPIN.

(c) Bank reported the CIN under one Major Head to RBI but under a different Major Head to GSTN/ARPIT

Illustration: CIN for ₹ 500 received from RBI under CGST Scroll On receipt of CGST e-Scroll from RBI for Rs. 500. 8675 RBD Rs. 500 Debit 0005 CGST RAT Rs 500 Credit MoE Raised On MoE Resolution – on receipt of CIN from GSTN 0005 CGST RAT Rs 500 (-) Credit 0005 CGST Tax Rs 500 Credit RBI takes up with the BANK which has not sent the CIN to GSTN/ARPIT

14.2.11.2 Case 2. – Accounting Entries (Missing CIN) Scenario A: The Bank has not reported the CIN in the luggage file sent to RBI Scenario B: The bank has reported the CIN in the luggage file but under a different Major Head

Illustration: CIN for ₹ 500 received under CGST from GSTN. ARPIT does not get the CIN in eScroll. Same CIN reported to RBI by bank under SGST.

Penal Interest for delayed remittance will be levied as per extant rules At the time of receipt of CIN from GSTN 8658 PSBS Rs 500 Debit 0005 CGST Tax Rs500 Credit No Accounting entries are made on receipt of eScroll for the day as the CIN is not available. MoE is generated On MoE Resolution 8675 RBD Rs.500 Debit 8658 PSBS Rs 500 (-) Debit

14.2.12 SETTLEMENT OF IGST BETWEEN CENTRE AND STATE/UTs 14.2.12.1 The levy of Integrated Goods and Services Tax [IGST] on all inter-state supplies of Goods and Services is as per the Provisions of Section 5 of Integrated Goods and Services Act 2017. As per the provisions of this Section, IGST is also levied and collected on the imports of goods into India at the point when duties of customs are levied and collected.

What This Means

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

• 1GSTN sends CPINs (challan intent) to ARPIT at 5-minute intervals for accounting
• 2Banks generate CIN (payment confirmation) and share with GSTN, which forwards to ARPIT
• 3Accounting: CIN matched to CPIN, booked under PSB Suspense (debit) and Tax heads (credit)
• 4RBI e-scrolls on T+1 day clear PSB Suspense against Reserve Bank Deposits
• 5Four types of mismatches (Invalid CIN, Missing CIN, amount more/less) resolved through electronic MoE

Practical Example

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.