With the introduction of the Goods and Services Tax (GST), businesses have to submit various GSTR forms based on their registration status, turnover, and operations. GSTR-6 is one such return and is exclusively to be used by Input Service Distributors (ISDs).
ISDs are incorporated companies that receive invoices against services that their branches or units use and are bound to allocate Input Tax Credit (ITC) to the respective unit.
Filing GSTR-6 ensures that this distribution of credit is reported accurately every month. It is one of the most vital compliance requirements that ensure transparency and also avoid credit mismatches in the GST system.
Let’s discuss this GST return in detail.
GSTR-6 is a monthly GST return that every Input Service Distributor (ISD) should file. It consists of information on ITC received from suppliers and its allocation to various branches or units having the same PAN.
It is necessary to file GSTR-6 even if there is no credit to distribute. In such cases, the ISD must file a Nil return. The return includes invoice-level information on inward supplies and debit/credit notes, along with the allocation of eligible and ineligible credit.
GSTR-6 Due Date:
You must file this return on or before the 13th of the following month. The July return, for example, has to be filed on August 13.
The taxpayer has to make sure that the following conditions are fulfilled before moving on with the filing of Form GSTR-6:
By fulfilling these requirements, the ISD will be able to submit returns easily.
GSTR can be filed online through the government GST portal or any other third-party accounting or GST software. But this post will discuss the filing through the official GST portal. The step-by-step GSTR-6 filing process is divided into different parts for clear understanding.
Part A: Login and Navigate Dashboard
Fill in the required tables:
Add or amend ITC received, debit/credit notes (Tables 3, 6A, 6B, 6C).
Distribute and view ITC across units (Tables 4, 5, 8, 9).
Check late fee details in Table 10 after filing.
Note: Only include documents dated within the valid registration period of both ISD and the supplier.
Entering ITC Details (Table 3)
Click the Table 3 tile and select Add Missing Invoice Details to enter invoices.
Intra-State: Enter Central and State Tax.
Inter-State: Enter Integrated Tax.
Credit/Debit note before and after delinking:
| S. No. | Before Delinking | After Delinking |
|---|---|---|
| 1 | Original invoice number & date were mandatory | Not required |
| 2 | The original invoice number & date were mandatory | POS entry is mandatory |
| 3 | Supply type based on invoice | Supply type based on Supplier GSTIN & POS |
| 4 | One note per invoice | One note can cover multiple invoices |
| 5 | Pre-GST checkbox available | Pre-GST checkbox removed |
Distribution depends on whether the unit is in the same state (intra-state) or a different one (inter-state). In SEZ cases, ITC is always distributed as IGST.
Save and Review
Click Save. Your entries will appear under Eligible ITC or Ineligible ITC, based on what you selected. You can also view invoice summaries by clicking on the recipient details.
Note: Repeat the same steps for distributing ineligible credit, which will be reflected under the Ineligible ITC tab.
Click the Table 4 tile, then click Calculate ITC to view the total, eligible, and ineligible ITC available.
Review auto-filled data from Tables 5 & 8. If needed, enter how ITC should be utilized under each tax head and save.
After proceeding to file, review the Consolidated Summary of all entries. Click Proceed to continue or Back to GSTR-6 Dashboard to make edits if needed.
Conclusion
GSTR-6 is an important compliance requirement for all Input Service Distributors. It helps in allocating Input Tax Credits among various units in a proper way without mismatch and possible penalties.
Regardless of whether you hold credit to allocate, it is required that you file a Nil return on time. GSTR-6 has become much more convenient with the availability of online and offline tools. It is also important to verify that all preconditions stay up to date with your invoice data and preview your return.
Appropriate filing not only facilitates a smooth flow of credit but also keeps your GST compliance up to date
As this filing is based on registration type and not business turnover, there is no turnover limit for GSTR-6.
The due date for GSTR-6 is the 13th of the following month. For example, the July return must be filed by August 13.
Yes, you can easily file GSTR-6 without the assistance of a CA. You can take help from the above guide or use any third-party software.
Yes, you can file your Form GSTR-6 even if your suppliers haven’t filed their respective GSTR-1 or GSTR-5. The return does not depend on their filing status.
Yes, you have to pay a late fee if you file GSTR-6 after the due date. You can check the particular amount charged under the GST law.
If ITC reversal exceeds available credit, the excess becomes a liability. The return can still be filed, but your net credit reduces.
Use Table 5 and Table 8 in GSTR-6 to allocate ITC based on each unit’s service usage. Ensure the distribution matches actual consumption.
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