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What is GSTR 6?

June 30, 2021

What Is GSTR 6

What is GSTR 6?

GSTR6 monthly return statement has to be filed by organizations every month who are also input service distributors. It contains the details of Input Tax credit received and its distribution among the various organizations, along with the details of inward supplies received or purchased from registered taxpayers. So simply GSTR6 means, the monthly GST return for Input Service Distributor.

Input Service Distributor (ISD)

Input Service Distributor (ISD) is a registered GST taxpayer who is required to distribute the ITCs that are related to its  GSTIN to the branches with different GSTIN but that is registered under the same PAN. An Input Service Distributor (ISD)  receives the invoices for services utilized by its branches. It gives out the ITC to its branches in a proportional manner by delivering ISD invoices. As already mentioned, these branches must have the same PAN as that of ISD, they may have different GSTIN. Literally, GSTR 6 applicability remains to be valid and done by Input Service Distributor.

Let us get clarity on ISD with an example: The head office of XXX Pvt Ltd is located in Mumbai with its branches over different locations such as Chennai, Banglore, and Ranchi. The head office in Mumbai bore software maintenance service expenses for all the branches and received an invoice for that. As the software is used by all its branches, the ITC of the service could not be claimed by the head office alone. It has to be distributed to Chennai, Bangalore, and Ranchi as well. In this scenario, Input Service Distributor (ISD) is the head office in Mumbai.

Why is GSTR 6 Significant? 

GSTR 6 consists of all the documents delivered for distribution of ITC  and the mode of distribution of both credit and tax invoice on which the credit is received.  GSTR 6 has to be filed by every ISD even if it is a nil return.

When is GSTR 6 Due Date? 

As per the GST Act, the GSTR 6  due date is the 13th of next month. The late fee has been reduced to 50 Rs per day. Whereas no provision is there for reduction as NIL return is filed.

When to File GSTR6?

The GSTR 6 monthly return for an appropriate month could be filed upon the completion of that month. It is to be remembered that GSTR6 has to be filed before the 13th of the following month.

Prerequisites for GSTR 6

  • For filing the GSTR6, some prerequisites are there as part of the process of how to file GSTR 6.
  • Only a registered taxpayer under GST with a 15 digit PAN-based GSTIN could file GSTR 6.
  • The aggregate turnover of business should be greater than 20 lakh Rs.
  • GSTR 6 applies to all registered Input Service Distributors (ISD) under the GST who have not chosen for the composition scheme and do not have a Unique Identification Number (UIN). This is not applicable to non-resident taxpayers.
  • You need to keep the details of all taxable purchases by you (ISD/Branches). You also require to keep the details of how you disbursed the ITC you received on your purchases across your branches. ( via internal transactions between the head office and its branches)

Who should File GSTR 6?

GSTR 6 monthly return has to be filed by every Input Service Distributor (ISD).

How to Revise GSTR 6?

Provision is not there under GST to revise GSTR 6. Any mistakes committed could be rectified while filing GSTR 6 of the next month.

What is GSTR 6A?

GSTR 6A  is an automatically generated form that is based on the details given by the suppliers of an Input Service Distributor (ISD) in their GSTR 1. Since it is a read-only form, it needs not be filled. If you wish to make any changes in GSTR6A it has to be done, while filing GSTR6.

You could view GSTR 6A by entering the Return Dashboard of the GST portal and click ‘PREPARE ONLINE’ on the GSTR 6A tile.


Read More:

Form GSTR 6

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