Corinthians and Rushen also through
Daniel Bell scored an early goal for Peel against St. George's in the Keystone Law Hospital Cup first round tie at Glencrutchery Road.
However, that was the last bit of joy for the westerners as the home side scored five in reply to be ahead at half-time and added a sixth in the second period.
Scorers for St. George's were Ciaran McNulty with two, Chris Bass, Furo Davies, Joey Morling and an own goal.
Corinthians and Rushen both scored 2-0 home victories over Old Boys and Colby respectively.
Other sides making it through to the quarter-finals are Malew, Douglas Athletic, Marown, St. John's and St. Mary's.
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