Introduction

Every registered GST taxpayer must deposit tax, interest, penalty, or late fees using a GST payment challan, formally known as Form PMT-06. This challan is essential for businesses that need to make advance payments, pay tax liabilities arising from GSTR-3B, or correct previous period errors.

Understanding how to generate and pay using Form PMT-06 ensures smooth compliance, prevents penalties, and helps taxpayers avoid unnecessary late payment interest.
This guide by Bisways Consulting Group provides a step-by-step explanation of generating PMT-06, payment modes, interest rules, and the process for correcting mistaken challans.

What Is Form PMT-06?

Form PMT-06 is the official challan used to deposit amounts into the GST Electronic Cash Ledger.

Taxpayers use it to pay:

• IGST

• CGST

• SGST

• Cess

• Interest

• Penalties

• Late fees

• Any other GST liability

Once the challan is paid, the amount reflects in the Electronic Cash Ledger and can be used to set off tax liability.

When Should You Use PMT-06?

Form PMT-06 is required for:

• Monthly or quarterly GST payments

• Payment of interest for delayed filing

• Payment of late fees

• Liability due to amendments or corrections in GSTR-1/3B

• Amount payable after scrutiny or notices

• Advance tax payments under QRMP scheme

Types of GST Payments Allowed

1. Tax Liability (IGST/CGST/SGST/Cess)

For outward supplies as per GSTR-3B.

2. Interest

Applicable for delayed tax payment or delayed GSTR-3B filing.

3. Late Fees

Charged for late filing of returns.

4. Penalties

Imposed for non-compliance, defaults, or inaccurate reporting.

Documents and Details Required

• GSTIN

• Period for which payment is made

• Type of tax (IGST/CGST/SGST/Cess)

• Tax amount, interest, late fee, or penalty

• Mode of payment

• Bank account details

Step-by-Step Process to Generate PMT-06 Challan

Step 1: Log in to GST Portal

Go to: Services → Payments → Create Challan

Step 2: Enter Payment Details

Specify:

• Tax head (IGST, CGST, SGST)

• Interest

• Penalty

• Late fee

Step 3: Select Payment Mode

Choose from:

• Net Banking

• NEFT/RTGS

• Over-the-counter (for limited taxpayers)

• UPI (for select banks)

Step 4: Generate Challan

A CPIN (Common Portal Identification Number) is generated.

Step 5: Make the Payment

Pay using your selected mode within 15 days, after which CPIN expires

Step 6: Amount Reflects in Cash Ledger

Once payment is successful, the paid amount appears under:

Services → Ledgers → Electronic Cash Ledger

Step 7: Offset Liability in GSTR-3B

Go to Return Filing → GSTR-3B → Payment of Tax and utilise cash ledger balance.

Late Payment Interest Rules

Interest is payable under:

• 18% p.a. – for delayed payment of output tax

• 24% p.a. – for wrong ITC utilisation

Interest is computed daily based on outstanding tax.

Correction of Wrong Challans

Mistakes in challans cannot be edited once paid.

However, the following can be done:

✔ If tax paid under wrong head:

Use Form PMT-09 to shift amounts within cash ledger (e.g., CGST → IGST).

✔ If excess amount paid:

Use the refund application RFD-01 under category “Excess Balance in Cash Ledger”

✔ If CPIN generated but not paid:

Simply let it expire—no action needed.

Tips for Smooth GST Payments

• Always match liability before generating challan

• Avoid last-minute payments to prevent CPIN failures

• Verify tax head selection carefully

• Reconcile cash ledger monthly

• Maintain challan copies for audit purposes

Conclusion

Form PMT-06 is a crucial tool for GST compliance, enabling taxpayers to deposit taxes, interest, and penalties accurately. Understanding how to generate and use the challan ensures timely payment, avoids errors, and helps maintain smooth compliance under GST.
Bisways Consulting Group provides expert assistance for GST payments, return filing, ledger reconciliation, interest calculation, and complete GST compliance support.