Form GST PMT-06

form gst pmt-06
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Form GST PMT-06

 

Do you remember making any payment using Form GST PMT-06 until now??

Yes, every taxpayer registered under the GST regime would have certainly made a payment using this Form/ Challan irrespective of the type of taxpayer or the return form the taxpayer is supposed to file.

The liability which the taxpayer had to settle through the electronic cash ledger was always deposited using the same challan Form GST PMT-06.

 

Now let’s understand how the Form GST PMT-06 has changed after the introduction of the QRMP scheme 

When you generate a challan in Form GST PMT-06, the GSTN portal will ask the taxpayer to select a reason for generating the challan.

  • Monthly Payment for Quarterly Return
  • Any other payment

Before the introduction of the QRMP scheme, there was no such option as well as a requirement for selecting a reason for generating a challan.

 

Which “reason for generating the challan” should be selected by the quarterly taxpayer

Taxpayers who have opted for the QRMP scheme will be required to furnish quarterly returns in Form GSTR 3B and Form GSTR 1. But the payment under this scheme will continue to be monthly. Selecting the correct reason for generating the challan is of utmost importance as until now there is no clarity from the Government that if a taxpayer accidentally/by mistake selects an incorrect reason for the generation of challan what will be the recourse.

So let’s understand which reason needs to be selected for the generation of challan in Form GST PMT-06:-

For M1 & M2 of the quarter – The taxpayer should make sure that the “Monthly Payment for Quarterly Return” is selected as the reason for generating the challan for the first and second month of the quarter i.e., M1 & M2 of the quarter.

For M3 of the quarter – For the last month (M3) of the quarter, payment for the outstanding liability will be again routed through the challan in Form GST PMT-06 before furnishing the Form GSTR 3B for the quarter. But as an auto-generated challan in Form GST PMT-06 will be generated by the system, taxpayers will not be required to select the reason for generating the challan. But in case if the taxpayer has to select the reason it will be “any other payment”.

Note: Outstanding liability will be derived after offsetting the balance in the electronic credit ledger, the balance in the electronic cash ledger and the amount deposited in M1 & M2 through the Form GST PMT-06.

Note: The due date of payment for M1 & M2 of the quarter is the 25th of the following month respectively. The due date of payment for M3 of the quarter is the same as the due date of furnishing the return in Form GSTR 3B i.e 22nd /24th of the following month after the end of the quarter. 

Note: “Any other payment” needs to be selected as the reason for generating the challan for the third month of the quarter as the two options for challan type i.e 35% challan and challan on a self-assessment basis are only available for the first two months of the quarter.

Which “type of challan” should be selected by the quarterly taxpayer

When you select the reason “Monthly Payment for Quarterly Return” while generating a challan in Form GST PMT-06, the GSTN portal will further ask the taxpayer to select the type of challan

  • 35% Challan (Tax as per Fixed Sum Method)
  • Challan on Self-Assessment Basis (Tax as per Self Assessment Method)

Before the introduction of the QRMP scheme, there was no such option as well as a requirement for selecting the type of challan while generating Form GST PMT-06.

Note: Quarterly taxpayer has the option to select any of the above methods for the calculation & payment of tax. But once the method is selected the same has to be followed for the quarter. However, there is no restriction on changing from the fixed sum method to the self-assessment method or vice-versa in the next quarter.

Note: If you select the reason “Any other payment” while generating the challan. You will not be asked to select the type of Challan.

What will be the late fees if Form GST PMT-06 is not filed within the prescribed due dates? 

There will be no late fees if payment in the FORM GST PMT-06 is done after the prescribed due date. However, Interest on delayed payment of tax under section 50 will be levied.

What will be the interest for delayed/short payment under the QRMP Scheme?

As per the fixed sum method of the QRMP Scheme,

⇒ No interest – If the taxpayer makes the payment equivalent to or more than the pre-filled challan and discharges the remaining liability while furnishing Form GSTR 3B. (GSTR 3B should be filed within the due date.)

⇒ Interest @ 18% – If the taxpayer does not pay an amount equivalent to the pre-filled challan then interest u/s 50 will be calculated on net tax liability from the succeeding day of the due date of Form GST PMT 06 up to the date of payment.

As per the self-assessment method of the QRMP Scheme,

⇒ Interest @ 18% – If the taxpayer does not pay/short pays the tax liability due then interest u/s 50 will be calculated on net tax liability from the succeeding day of the due date of Form GST PMT 06 up to the date of payment.

Is it mandatory to make payment through Form GST PMT-06 every month under QRMP Scheme?

No, it is not mandatory for taxpayers under the QRMP scheme to make payment through Form PMT-06 every month.

  • If the tax liability for the first month, second month, or both is NIL.
  • If there is adequate balance in the electronic credit ledger/electronic cash ledger to offset the cumulative liability on the due date of filing Form GST PMT-06.

Let’s understand the same considering various scenarios

Scenario

Fixed Sum Method Self-Assessment Method
M1 M2 M1

M2

In case of Nil liability

NA NA NA NA
Adequate balance in credit & cash ledger NA NA NA

NA

Inadequate balance in credit & cash ledger to offset the liability on M1’s due date

Pay as per auto challan generated Pay as per auto challan generated Pay as per self-assessment basis

Pay as per self-assessment basis

Inadequate balance in credit & cash ledger to offset the liability on M2’s due date (Note 1)

NA Pay as per auto challan generated NA

Pay as per self-assessment basis

Note 1- In the case where there was adequate balance in the electronic credit and cash ledger to offset the liability on M1’s due date. The taxpayer did not make any payment through Form GST PMT-06 for the first month(M1) hence no method was selected. But there was inadequate on the due date of M2, so taxpayers will be required to make payment and will be given an option to select anyone from the two methods available up to the payment date of M2.

Unanswered Question

⇒ If a regular taxpayer makes payment through Form GST PMT-06 after selecting the reason “monthly payment for quarterly return” then what is the recourse?

If a quarterly taxpayer makes payment through Form GST PMT-06 after selecting the reason “any other method” then what is the recourse?

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About CA Ankita Khetan 169 Articles
Ankita is a Chartered Accountant in practice and holds a Diploma in IFRS (from ACCA, UK). She is also a Commerce PG and Certified Independent Director (from IICA). She holds a certification in Forex and Treasury Management. Her area of expertise is GST and Income tax. She is passionate about reading, writing, and sharing knowledge on areas related to finance and taxation.

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