GST PMT-06 Form – Benefits, Eligibility Criteria, and How to Use
Under the Goods and Services Tax (GST), the PMT-06 challan is used for making payment of tax, interest, late fees, and penalties. The GST PMT-06 form serves the digital need and can be generated from the GST portal (the portal is made available by the Government of India). Taxpayers can use this form to make online payments instantly and get receipts on it.
With the launch of the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme in January 2021, the GST PMT-06 form has gained prominence amongst the taxpayers. QRMP was brought in by the Central Board of Indirect Taxes and Customs (CBIC) to facilitate small taxpayers that have a turnover of less than Rs 5 crores. The scheme enables these small taxpayers to pay taxes monthly and also allows them to file returns every 3 months.
What is Form GST PMT 06?
Form PMT-06 in GST is a single challan that can be generated online on the GST portal by the taxpayers and it enables them to pay goods and services tax, interests, fees, and penalties. After making the online payment, a receipt is generated for the taxpayers instantly which confirms the payment.
Benefits of Form GST PMT 06
The GST PMT-06 payment challan has certain benefits attached to it, they are:
- Any online payment through GST PMT-06 payment challan would be credited into the electronic cash ledger (online account of taxpayer maintained by the GST system showcasing the cash deposits made by the taxpayer to authorized banks) of the taxpayer on the same day.
- GST practitioners are also authorized to make the GST PMT payments on behalf of their clients.
- The three-four copy challan can be replaced by a singular challan generated online.
- There is a higher level of transparency in the pricing and GST rate and the payment can be made online in a swift manner which eliminates the need to stand in long queues for making payments.
- Taxpayers can create any number of challans during a day as there is no limit over challan generation per day.
Also Read: Understanding GST Accounting – How to Pass Entries Under GST?
Eligibility Criteria to Generate Form GST PMT-06
The GST PMT-06 online payment challan can be generated online on the GST portal by any common taxpayer, non-resident taxable individual whether or not providing Online Information Database Access and Retrieval (OIDAR) service and a simple taxable individual.
The requirement for generating the form PMT-06 online is that as per Rule 87(2) of CGST and SGST, 2017, the individual needs to enter all the details concerning the amount deposited by him/her as tax, interest, fees, or any other amount.
When are Payments to be made Under GST PMT-06?
Post the generation of the GST PMT-06 online payment challan, the taxpayer needs to make all the pending payments within 15 days. If the taxpayer is registered under the QRMP scheme, then the taxpayer needs to pay the remaining tax amount in each of the first 2 months. The payment for the first month should be made by the 25th of the following month. For example, payment for the month of May should be made before the 25th of June. A taxpayer need not make a payment if:
- They have sufficient balance inside their electronic cash/credit ledger for the tax amount that needs to be paid by them. If the balance in the cash/credit ledger is insufficient, then the PMT-06 form can be used to make those payments.
- They have no tax liabilities for that month.
A GST practitioner can make payments on behalf of their clients but one cannot opt-in or opt-out of the QRMP scheme on behalf of the taxpayer.
Methods of Payments through PMT-06
There are 2 methods of making the GST PMT-06 payments online form:
1. Payment Method for Taxpayers Who Make Payments Other than the QRMP Scheme
The common tax-paying individual should deposit tax in the cash ledger to pay the net tax liability emerging in the electronic liability ledger. The tax can be suitably paid without any interest and late fee if remitted within the due date of filing GSTR-3B (It is a form that simply summarizes the taxpayer’s GST return filled every month).
2. Payment Method for Taxpayers Opting to Make Payments via QRMP Scheme
For taxpayers opting to make payments via the QRMP scheme, there are 2 methods to do so:
- Fixed-sum Method – Under this methodology, the taxpayer can get a pre-filled GST PMT-06 payment challan at either 35% of the tax amount paid in cash if filed quarterly, or at 100% of the tax amount paid in cash if filed monthly. However, the 35% challan would not be accessible to those taxpayers who have either opted out of the Composition scheme, are new taxpayers, or have not filed their last GSTR-3B.
- Self-assessment Method – Under this methodology, the tax liability needs to be assessed manually by the taxpayer and the amount needs to be paid through the GST PMT-06 online payment challan. The taxpayer would need to consider the amount to be paid on inward and outward supplies after adjusting the available Input Tax Credits (ITC), which are the taxes paid by businesses throughout India to claim input credit on the capital goods purchased by them under the GST law. The taxpayer can check their auto-drafted ITC statement every month in the form GSTR-2B (it is an auto-drafted form acting as the ITC statement for taxpayers).
How to use GST PMT 06 Form?
Step 1: Go to the GST portal and steer to Service > Payments > Create Challan.
Step 2: Select the option of monthly payment for quarterly return as the basis for challan generation if you are registered under the QRMP scheme. If you are not registered under the QRMP scheme then select any other payment option to generate the challan.
Step 3: Select the year and the period for which the tax is being paid.
Step 4: Select either of the challan types and click on proceed.
Step 5: After entering the details in the challan, a Challan Portal Identification Number (CPIN) would be generated on the GST portal. The validity of this CPIN is only for 15 days, so the payment needs to be made before that.
Step 6: After you have made the payment, a Challan Identification Number (CIN) would be shared by the bank which will serve as proof of the payment’s success. This CIN would then have to be entered into the form GST PMT payment challan .
Step 7: The amount paid by you would be credited to your Electronic Cash Ledger. If the payments are made online with this challan after 8 pm, it will be showcased in your Electronic Cash Ledger on the same day. Then you can submit this challan within the next 24 hours of making the payment.
Procedure to Generate Challan in PMT-06 for GST Payment
Step 1: Go to the GST portal and steer to Service > Payments > Create Challan.
Step 2: Select the option of monthly payment for quarterly return as the basis for challan generation if you are registered under the QRMP scheme. If you are not registered under the QRMP scheme then select any other payment option to generate the challan.
Step 3: Select the year and the period for which the tax is being paid.
Step 4: Select either of the challan types and click on proceed.
Step 5: After entering the details in the challan, a Challan Portal Identification Number (CPIN) would be generated on the GST portal. The validity of this CPIN is only for 15 days, so the payment needs to be made before that.
Step 6: After you have made the payment, a Challan Identification Number (CIN) would be shared by the bank which will serve as proof of the payment’s success. This CIN would then have to be entered into the form GST PMT-06 online payment challan.
Step 7: The amount paid by you would be credited to your Electronic Cash Ledger. If the payments are made online with this challan after 8 pm, it will be showcased in your Electronic Cash Ledger on the same day. Then you can submit this challan within the next 24 hours of making the payment.
Step 8: If the taxpayer is making payments via the QRMP scheme, then the amount deposited by the taxpayer can only be used for any liabilities and cannot be used for any other purpose until GSTR-3B is filed for that quarter.
Step 9: Any amount remaining after filing GSTR-3B can then be utilized in the succeeding quarters.
Step 10: Refunds can only be claimed only after GSTR-3B for that quarter is filed. For example for the quarter of July-September, if the taxpayer seeks a refund for the amount deposited in the month of July, then the refund can only be availed after the taxpayer has filed GSTR-3B for the month of September.
Interest for Late Payments
If the taxpayer is not able to make payments by the due date, then the interest will accrue from the due date until the payment is actually made. A separate interest charge would be levied if Form GSTR-3B is not filed by the due date. In both cases, the rate of interest on the amount paid late is 18% per annum.
Exceptions to this condition:
- If payment is made via the fixed sum methodology, then no interest needs to be paid if the pending tax amount is paid in the first 2 months of the quarter. If the payment is made via the self-assessment methodology, then interest will have to be paid for tax or any liability (net of ITC) for late payments. This payment of interest would be made through Form GSTR – 3B.
- If the amount paid by the taxpayer is less than the amount owed for the first 2 months in a quarter, then the taxpayer need not pay any interest on the balance amount as long as the remaining amount is paid by the end of the quarter while filing GSTR-3B.
Also Read: Understanding E-Invoicing Under GST: Meaning, Benefits and Documents Required
Final Word
The form GST PMT-06 payment challan online is a single form for taxpayers to pay their GST dues, interests, penalties, and fees. This makes it important for the taxpayers. No more hassle of waiting in long queues or filling out multiple forms for each component to be paid. As payments done online get credited to the electronic ledger of the taxpayer on the same day, this payment methodology has also increased the adoption rate of digital banking amongst businesses. Also, many GST practitioners can now make payments using the GST PMT-06 payment challan on behalf of their clients when required. The three-four copy challan has been reduced into a singular challan and the taxpayer can generate any desired number of challans in a single day if and when required.
FAQs on GST PMT-06
Ans: QRMP (Quarterly Return Monthly Payment scheme) was initiated under the Goods and Services Tax of India. For taxpayers who had an aggregate turnover of up to Rs 5 crores in the previous Financial Year, the QRMP allows filing quarterly returns. The taxes have to be paid monthly but returns can be filed monthly, thus giving such taxpayers compliance relief. The QRMP scheme was brought into effect on January 1, 2021.
Ans: The QRMP scheme can be availed any time throughout the year, the update window for each quarter is given below:
• April – June: 1st February to 30th April
• July – September: 1st May to 31st July
• October – December: 1st August to 31st October
• January – March: 1st November to 31st January
Ans: Previously, there were multiple taxes levied on the consumption of goods, ranging from VAT (value-added tax) to service tax to excise tax, etc. This would also create a cascading tax effect which is the tax levied on tax as the goods move through the sales channels. This caused an increase in the overall tax paid by any consumer which was brought down by implementing GST.
Ans: The components of the GST are:
• CGST (Central Goods and Services Tax): This is the tax collected by the Central Government on the intra-state sale of goods and services.
• SGST (State Goods and Services Tax): This is the tax collected by the state government on the intra-state sale of goods and services.
• IGST (Integrated Goods and Services Tax): It is a tax collected by the central government on the inter-state sale of goods and services.
Ans: GST was initially proposed in the year 2000 by the central government which set up a committee to draft the law. From there on, it took 17 years for the Government of India to finally be able to get it passed in both the houses of the parliament. Finally, on July 1, 2017, the GST law was brought into effect.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
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