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What is GSTR 6?

GSTR 6, also known as goods and service tax return, is a monthly statement that needs to be filed by firms that are also Input Service Distributors (ISD). While filing GSTR 6 returns, organisations must include information about inbound supplies received/purchases made from other registered taxpayers as well as information about input tax credits dispersed across the organisation's subsidiaries.

 

GSTR 6 must be filed by organisations since it provides information on all the papers used to distribute Input Tax Credits (ITC), as well as data about how credits are distributed and the tax invoices used to calculate credits. As a result, even if there is a nil return, every ISD must file a GSTR 6.

Who Should File GSTR 6?

The organisations that are Input Service Distributors (ISD) are required to file GSTR 6. These businesses provide goods, services, or both. They collect tax invoices for input services and provide the necessary documentation to disperse the state tax (SGST), credit of central tax (CGST), union territory tax (UTGST), or integrated tax (IGST) payable on certain services to a supplier of taxable products or services having the same PAN as the ISD.

What is the Due Date for Filing GSTR 6?

Here are the details about the due date for filing GSTR 6.

  • GSTR 6 for a given month can be filed at the end of that month.

  • The deadline for submitting this return is the 13th of the following month. (For example, if you are reporting the GSTR 6 for June 2022, you must do so by July 13th, 2022.)

What is GSTR 6A?

GSTR 6A is a statement of inbound supplies produced by the system for a recipient taxpayer. The information given by the producers of an input service distributor in their GSTR 1 is used to electronically construct the GSTR 6A document. The GSTR 6A form is a read-only document. The form is for a certain tax period and is updated based on the information provided by the antecedent supplier until the ISD taxpayer files the GSTR 6 for the same tax period.

 

Any modifications to GSTR-6A must be filed at the same time as submitting GSTR 6. Since GSTR 6A is a read-only paper, you are not obliged to file it separately. 

GSTR 6 Format

Below are the details that you are required to follow while filing GSTR 6.

  • GSTIN: GSTIN, also known as goods and service tax identification number, is a 15-digit number that is assigned to each person registered under GST. 

  • Name of Taxpayer: Name of a non-resident taxpayer who runs a company that provides products and services outside of India. 

  • Month-Year: You must pick the month and year for which GSTR 6 is being filled.

  • Input Tax Credit Received for Distribution: The section will include itemised receipt information on all inputs received and disbursed as ITC.

  • Total ITC/Eligible ITC and Ineligible ITC to be Distributed for the Tax Period : This section must include the sum of all ITC earned by the ISD, broken down into the total amount of ITC, eligible ITC, and ineligible ITC.

  • Distribution of Input Tax Credit in Table No. 4: This section requires details about the ISD reports and the total allocation of ITC in the return. Based on this, the dealer who receives the credit will be entitled to claim the ITC.

  • Amendments in Information Furnished in Earlier Returns in Table No. 3: If any inaccuracies were found in the invoice data for inside supplies submitted in past returns, they can be rectified in this section. 

  • Input Tax Credit Miss-Matches and Reclaims to be Distributed in the Tax Period: Modifications to the total ITC owing to inconsistency or ITC reclaimed due to incompatibility can be made in this table.

  • Distribution of Input Tax Credit Reported in Table No. 6 and 7: Here, adjustments can be made to the credit amount given to dealers based on information submitted in Tables 6 or 7.

  • Redistribution of ITC Distributed to a Wrong Recipient: This table can be used to record any improper allocation of ITC to dealers in past returns.

  • Late Fee: If there are any late fines due to late filing of the return, this table must be filled.

  • Refund Claimed from Electronic Cash Ledger: If any refund is due, you can fill this section and request it from the electronic cash ledger.

Prerequisites for Filing GSTR 6

Before filing GSTR 6, there are multiple prerequisites that you must be aware of. Here are the details about the same.

  • You must have a 15-digit PAN-based GSTIN and be registered as a taxpayer under the GST.

  • Your company should have an overall revenue of at least ₹20 Lakhs.

  • All registered Input Service Distributors (ISD) under GST who have not chosen the composition scheme or have a Unique Identification Number (UIN) are eligible to file the GSTR 6 return. 

  • Non-resident taxpayers are exempted from filing this return.

  • All taxable purchases made by you on behalf of your other businesses or subsidiaries must be documented.

  • Additionally, you must record the specifics of how you allocated the input tax credit that you received for your purchases among your branches through internal transactions.

How to File GSTR 6 Online?

Here are the steps to follow in order to file for GSTR 6 return.

  • Step 1: Visit the official page of the GST portal.

  • Step 2: Log in to the page with your credentials. 

  • Step 3: Click on ‘RETURN DASHBOARD.’

  • Step 4: Next, select the month and year for which you are filing the return and click on the ‘SEARCH’ icon.

  • Step 5: Two icons will appear, select ‘Return for input service distributor GSTR6.’ 

  • Step 6: Click on ‘PREPARE ONLINE.’

  • Step 7: Fill in the consent form and submit it.

  • Step 8: Thereafter, fill in the required details section-wise carefully and provide the supporting documents.

  • Step 9: After filling up the form, check each detail thoroughly and submit it.

  • Step 10: The status of the return on the "RETURN DASHBOARD" changes to "Filed" after it has been submitted.

GSTR 6 Late Fees & Penalty

If you didn't submit the return by the deadline, you are required to pay a fine of ₹50 each day. However, when a NIL return is filed, no reduction allowance is granted.

GSTR 6 FAQs

Is it mandatory to file nil GSTR 6?

Yes, the organisations that are ISD are obligated to file nil GSTR 6.

Can GSTR 6 be revised?

GST has no provision for revising GSTR 6. If there are any inaccuracies in the return, they can be corrected by submitting GSTR 6 the next month.

Where can we see auto-populated invoices in GSTR 6?

Auto-populated invoices can be seen in tables 3, 6A, 6B, and 6C.

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