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GSTR-6: Return for Input Service Distributors (ISDs)
Many taxpayers find it difficult to navigate the intricate system of GST filings, particularly when dealing with specialized forms such as Form GSTR-6. This article is developed to address the common taxpayer concerns under GST, focusses on the essentials of Form GSTR-6, including its purpose, eligibility, due dates and overall filing process.
GSTR-6
Form GSTR-6 is a monthly return form designed specifically for Input Service Distributors (ISDs) under the GST regime. It is the tool that ISDs use to distribute the Input Tax Credit (ITC) among their branches and its units, ensuring that credit flows smoothly throughout the business. Consider it the Robin Hood of GST forms, taking credit where it is accumulated and distributing it where it is required.
Who should File Form GSTR-6?
Entities registered as Input Service Distributors (ISDs) are exclusively required to file Form GSTR-6. The ISDs play an important role in distributing the Input Tax Credit (ITC) for services received by one branch but used by multiple branches of the same organization.
Eligibility and Rules for Filing Form GSTR-6
Eligibility:
Entities registered under GST as an ISD must file Form GSTR-6. It is a mandatory filing to ensure that ITC is distributed properly within the organization.
Rules for Filing Form GSTR-6:
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Monthly Filing: Form GSTR-6 must be filed on a monthly basis, regardless of whether there were any transactions during the month.
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Deadline: The due date for filing Form GSTR-6 is the 13th of the month for which the return is being filed.
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ITC Distribution: The form is used to document the details of ITC distributed in previous tax periods.
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Amendments: The details of ITC distributed in previous tax periods can be amended in the subsequent month’s tax period.
Sections in Form GSTR-6
Form GSTR-6 is a detailed document divided into several sections that captures various aspects of ITC by an ISD. Each section serves a specific purpose, ensuring all relevant information about ITC received and distributed is accurately reflected. Here is an overview of the various sections in Form GSTR-6:
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GSTIN: The unique 15-digit number under GST provided to every registered taxpayer must be entered into under this section.
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Legal Name of the Registered Person: The official name of the company or person filing the return must be provided.
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Input Tax Credit (ITC) Received for Distribution: This section should provide the information about invoices for which ITC is received, such as supplier’s GSTIN, invoice number, date, and ITC amount available for distribution.
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Changes in ITC Received for Distribution: Information related to revised information about previously reported ITC, such as supplier details, invoice details, or ITC amount should be provided.
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Total ITC available for Distribution: This section will reflect the total ITC available for distribution, including adjustments from previous periods.
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Input Tax Credit Distributed: The amount of ITC distributed should be provided here. This section will include the details such as GSTIN of the recipient units, the amount of ITC distributed (CGST, SGST/UTGST, IGST, and Cess), and the type of ITC (eligible, ineligible).
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Changes to the Distribution of Input Tax Credit: If there is any change in the details of distribution of ITC, provide such information including changes to recipient unit details or the amount of ITC distributed.
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Distribution of Blocked Input Tax Credit: Details on distributed ITC that has been blocked, including the recipient’s GSTIN and the amount of blocked ITC.
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Redistribution of ITC Distributed to Wrong Recipient: ITC distribution details that have been corrected, including the correct recipient’s GSTIN and the amount of ITC that needs to be redistributed.
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Late Fee Payable and Paid: The amount of the late fee payable for late filing, as well as any late fee payments made.
Steps for Filing Form GSTR-6
The following are the steps for filing Form GSTR-6:
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Login to the GST portal: Access the GST portal at https://www.gst.gov.in/ and login using the credentials.
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Navigate to GSTR-6: Go to ‘Services’>’Returns’>’Returns Dashboard’ and select the financial year and the return filing period for GSTR-6.
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Prepare Online/Offline: The return can be prepared online on the GST portal or offline using the utility tool and then it can be uploaded.
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Enter the Required Details: Fill in the required details, including ITC received, ITC distributed, and any necessary changes.
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Review and Submit: Check all of the entered information for accuracy. Once all the information is verified, the form can be submitted.
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File Return with DSC/EVC: Authenticate the filing with Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC).
Difference between Form GSTR-6 and Form GSTR-6A
Following are the difference between Form GSTR-6 and Form GSTR-6A:
Frequently asked questions
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What is Form GSTR-6?
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Input Service Distributors (ISDs) who are registered under the GST regime must file Form GSTR-6 on a monthly basis. It is used to distribute the Input Tax Credit (ITC) for CGST, SGST, IGST, and Cess on services received and passed on to their branches.
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Who is required to file Form GSTR-6?
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Any business registered as an Input Service Distributor (ISD) under GST must file Form GSTR-6 on a monthly basis.
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What is the due date of filing Form GSTR-6?
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The deadline for filing Form GSTR-6 is the 13th of the following month for which the return is being filed.
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If there are no transactions in a month, can the Form GSTR-6 be still filed?
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Yes. Even if there are no transactions in a given month, ISDs must file a Nil Return for GSTR-6.
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How to File Form GSTR-6?
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GSTR-6 can be filed online using the GST portal. The taxpayer should login to the portal using the credentials provided, go to the returns filing section, and select Form GSTR-6 for the relevant month.
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What information is required to file Form GSTR-6?
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The information pertaining to all ITC received and distributed to your branches or units, would be required in general. Moreover, information related to any amendment to be made in the previous returns would also be required.
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Can the Form GSTR-6 be amended after submitting the same?
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Amendments cannot be made to Form GSTR-6 after submitting the same. Before submitting, it is to be ensured that the information is complete and accurate.
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What happens if filing of Form GSTR-6 is delayed?
A
Late filing of Form GSTR-6 may result in a late fee and interest charges. The late fee is INR 50 per day (INR 25 each for CGST and SGST), with a maximum penalty of INR 5,000.
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Is there a penalty for not filing Form GSTR-6?
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Yes. Failure to file Form GSTR-6 results in a penalty in addition to late fees, particularly if the delay affects the claim of ITC of branches.
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Can an ITC be claimed using Form GSTR-6?
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No. Form GSTR-6 is used to distribute ITC amongst branches. Thereby, the branches can claim ITC in their respective GST returns.
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What if the taxpayer has made an error in Form GSTR-6?
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If an error is made in Form GSTR-6, it can be corrected in the following month’s return. The corrections should be clearly mentioned, to avoid any confusion.
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Does a composition taxpayer have to file Form GSTR-6?
Prachi Jain
Chartered Accountant
Prachi Jain is a Chartered Accountant with a passion for simplifying finance and tax-related matters through her insightful and informative blogs. With a background in finance and a deep understanding of tax regulations, Prachi has established herself as a trusted source of financial wisdom. Prachi is committed to empowering her readers with the knowledge they need to make informed financial decisions. Her expertise and dedication shine through in every blog post, helping her audience navigate the intricacies of finance and taxes with confidence. Follow Prachi Jain's blog for practical insights and guidance on managing your finances effectively.
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