GST payment challan (PMT-06)

Creating a challan, step by step

1. Log in to gst.gov.in and go to Services, Payments, Create Challan.
2. For GSTR-3B, you can let the portal auto-fill the cash needed from the saved return, or enter amounts yourself.
3. Enter amounts under the right major head (IGST, CGST, SGST/UTGST, cess) and minor head (tax, interest, penalty, fee, others).
4. Choose the payment mode and generate the challan. It gets a CPIN (common portal identification number), valid for a limited period (15 days at present).
5. Pay. On success the bank returns a CIN (challan identification number) and your cash ledger is credited.
6. Download the paid challan and keep it with the month's records.

Payment modes

Modes and limits change; check the portal's payment page for the current list.

Getting the heads right

Most payment problems are wrong heads. An intra-state sale creates CGST and SGST liability; an inter-state sale creates IGST. Interest goes under the interest minor head, late fee under fee.

Example. GSTR-3B shows cash payable of IGST ₹8,000, CGST ₹12,500, SGST ₹12,500, plus late fee of ₹150 CGST and ₹150 SGST. One challan: IGST tax ₹8,000; CGST tax ₹12,500, fee ₹150; SGST tax ₹12,500, fee ₹150. Total ₹33,300.

If you pay ₹8,000 under CGST instead of IGST by mistake, the IGST stays unpaid. Move the amount with Form PMT-09 within the cash ledger before filing, rather than paying again. The ledger structure is explained in GST electronic ledgers.

Payment is not filing

A paid challan only fills your cash ledger. The liability is cleared when you file GSTR-3B and offset it. If you pay on the 19th but file on the 25th, interest can still apply for the days after the due date, because the tax counts as paid on offset through the return. Pay and file together.

QRMP taxpayers and other uses

Under the QRMP scheme you file GSTR-3B quarterly but pay tax monthly for the first two months of the quarter, by the 25th of the following month, using PMT-06. There are two methods:

• Fixed sum: a pre-filled amount based on your past returns.
• Self-assessment: work out the actual liability for the month, net of ITC, and pay that.

Details are in the QRMP scheme guide.

Challans are also needed for other payments that draw on the cash ledger:

• Voluntary payments in DRC-03 draw on the cash ledger, so deposit first.
• Interest on an earlier short payment.
• Tax under reverse charge, which must be paid in cash.

This is general information, not tax advice.

Booking the payment in your accounts

In the books, a GST payment is not an expense. When you deposit the challan, debit an 'Electronic Cash Ledger' (or GST deposit) account and credit the bank. When GSTR-3B is filed and offset, the output GST ledgers are debited against the input GST ledgers and the cash ledger account.

Late fee and interest are expenses; the tax itself is not. Keeping the deposit as a separate account makes it easy to match your books with the portal's cash ledger.

Common mistakes

• Letting the CPIN expire and paying against it through NEFT, which delays the credit.
• Paying on the last day after bank cut-off times for NEFT/RTGS.
• Booking the challan in your books as an expense instead of against the GST payable ledgers.

Planning payments with Cashflow OS

Cashflow OS shows cash and bank balances and the cashflow forecast from your Tally data, so you can see a week ahead whether there will be enough to pay GST on the due date. The GSTR-3B view prepared from your Tally data gives the expected liability. The challan itself is created and paid on the GST portal.