GSTR-6

April 15, 2025 by Team Instabizfilings

What is GSTR-6?

GSTR-6 is a return form used under the Goods and Services Tax (GST) system in India. It is filed by Input Service Distributors (ISDs). The Input Service Distributor is a person or an entity that receives invoices for the services and then distributes the credit to other business locations or branches. GSTR-6 specifically deals with the distribution of Input Tax Credit (ITC) on services to the registered entities.

The form GSTR-6 is a monthly return that must be filed by an Input Service Distributor to declare the details of the Input Tax Credit (ITC) distributed to its branches or units. The return is submitted electronically through the GST portal.

Who Should File GSTR-6?

Only those entities registered as Input Service Distributors under GST need to file GSTR-6.
Registered ISDs that receive invoices for services and pass on the ITC to their branches or units need to file this return monthly.

It is crucial to note that regular taxpayers(those registered for GST under normal category) do not file GSTR-6.

Due Date for Filing GSTR-6

The due date for filing GSTR-6 is usually the 13th of the following month. For instance, the GSTR-6 for the month of March is required to be filed by the 13th of April.

However, the due date may vary depending on any extensions or changes made by the GST authorities.

GSTR-6 Return Format

The GSTR-6 return consists of multiple sections that need to be filled in:

Part A: Basic Details

GSTIN of ISD: The GST Identification Number of the Input Service Distributor.
Period of Return: The month for which the return is being filed.
Name of the ISD: The name of the Input Service Distributor.
Aggregate Turnover: The turnover of the ISD entity.

Part B: Details of Input Tax Credit (ITC) Received

ITC received on Services: The amount of Input Tax Credit received for services.
Details of Invoices: Information on the invoices related to services received by the ISD.
Taxable Value: The taxable value of services for which the ITC is claimed.
IGST, CGST, SGST, or Cess: The taxes paid on the services received.

This part helps the ISD in detailing the ITC that it has received in respect of the input services.

Part C: ITC Distribution

Details of Credit Distributed: This section allows the ISD to distribute the available ITC among various units or branches. The distribution should be made in accordance with the prescribed rules and the ITC must be correctly apportioned.
IGST, CGST, SGST, and Cess Distribution: The ITC is to be distributed separately for IGST, CGST, SGST, and Cess.

Part D: Details of Tax Paid

IGST, CGST, SGST, and Cess Paid: Details of the taxes that are paid during the month by the ISD.

Part E: Other Information

Any other relevant information or statements related to the Input Tax Credit distribution and adjustments made during the period.

Important Points to Note about GSTR-6

Filing Frequency: GSTR-6 must be filed monthly by the ISD, irrespective of whether there is any ITC to distribute or not.
Late Filing Penalty: If the GSTR-6 return is not filed within the due date, a penalty is applicable. The late fees are ₹50 per day (₹25 for CGST and ₹25 for SGST) for non-compliance, which may accumulate up to a maximum of ₹5,000.
No Option for Quarterly Filing: Unlike regular taxpayers who can opt for quarterly filing of returns, ISDs must file GSTR-6 on a monthly basis.
Filing on GST Portal: The official GST portal at www.gst.gov.in provides an interface for GSTR-6 return filing. It requires the user to log in with their credentials and complete the necessary sections.
ITC Reconciliation: It is essential for ISDs to ensure that the Input Tax Credit they distribute is in line with the ITC received. Any discrepancies in the amounts or incorrect distribution may lead to penalties or rejection of returns.
Amendment in Returns: If an error is made while filing, amendments can be made, but they must be rectified within the prescribed period.

Steps to File GSTR-6

Login to GST Portal: First, login to the GST portal using your GSTIN and credentials.
Navigate to GSTR-6 Section: On the dashboard, go to the "Returns" section and select GSTR-6.
Fill in Part A: Enter the basic details such as the GSTIN, name of the ISD, and the return period.
Provide Input Tax Credit Details: In Part B, enter the ITC details received on services.
Distribute the Credit: In Part C, distribute the ITC across your branches or units as per the prescribed norms.
Tax Payment Details: Provide details of the taxes paid during the month (if applicable).
Submit the Return: Once the return is filled out, submit it after verifying all the details.
Download Acknowledgment: After submitting, download the acknowledgment receipt for future reference.

Common Issues with GSTR-6 Filing

The return could be rejected when the ITC received is different from the distribution amount.
Delivering returns after the deadline results in widespread penalties. All businesses should file their returns on time to prevent accruing excess costs.
Errors in data entry will generate difficulties during the process. Always check all details once before submitting your information.

Conclusion

Under the GST system Input Service Distributors must fulfill the requirement to submit GSTR-6 applications. The system enables ITC to be distributed correctly among different branches and ensures smooth functioning of the tax system. Compliance under GSTR-6 requires both timely submission along with precise reporting because penalties will occur if these are not met while your business avoids disruptions.

As an ISD you must monitor all received services together with tax payments and accurate ITC distribution to branches to fulfill GST guidelines without facing penalties.

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