GSTR 6 Return Filing Process, Format, & Eligibility 

In 2017, the Indian Government introduced the Goods and Services Tax (GST) to simplify the tax implications for both individuals and businesses. From then a particular tax filing component became associated with business owners in the form of a GSTR-6 return. 

The GSTR-6 is a monthly return statement meticulously designed for Input Service Distributors (ISDs). Its main purpose is to report the receipt of inward supplies made towards ISDs. Also, it declares the distribution of ITC (Input Tax Credit) accordingly. 

In the sections below, you can get detailed information about the GSTR-6 format and understand who is required to file this return to maintain tax compliance.

What Is GSTR-6 Return?

GSTR-6 is a monthly return statement which needs to be submitted by Input Service Distributors. This monthly GST return declares particulars about the ITC gained by an ISD and also states the due distribution of ITC received. Overall, this statement is divided into 11 sections. 

When Is GSTR-6 Return Due?

GSTR-6 submission must be completed by concerned individuals within the 13th of the month following the month for which the transactions need to be reported. ISDs should timely file their GSTR-6 as it enables them to easily claim the credit allocated for them in the same month's returns. 

If an ISD exhibits consistent delays in filing, that will negatively impact their credit flow and may even affect their compliance ratings. Finally, for flawless filings and precise documentation, ensure that you are well aware of the GST state code. 

Must reads

GST on Food and Beverages

• 20 Jan 25
• 8 mins

Can We Take GST Input on Hotel Bills?

• 1 Sep 24
• 10 mins

Who Should File GSTR-6?

All the GST-registered Input Service Distributors (ISDs) must file GST-6 returns. An ISD represents a special category of taxpayers that gets invoice details against the services consumed by its branches. Thereafter, it proportionately distributes the available input tax credit to all the branches by issuing ISD invoices. All these branches have the same PAN as the ISD but may have separate GSTINs. 

Filing GSTR-6 is compulsory as it facilitates the correct ITC distribution process as stated against input services. Moreover, this monthly filing helps ensure the recipient's allocated ITC is consistent. Thus, submitting this return is critical to ensure the credits are precisely allocated and used under the GST law. 

How to Revise GSTR-6?

At present, there is no direct provision to bring changes in an already filed GSTR-6 form as per the GST law. In the case an ISD notices any mistakes, they need to adjust the same while filing the return of the following month. So, this is the standard way of rectifying any errors or omissions. 

Through the current procedure, the GST Council makes sure that all the allocations of input credit are correctly reported over time. Nonetheless, an ISD must always carefully check and confirm their entries before uploading the returns. This effectively lessens the chances of complications during upcoming tax periods. 

Note that bringing corrections is important to stay aligned with the ITC system and ensure overall income tax compliance. 

?feature=shared

What Is GSTR-6A?

GSTR-6A is an auto-generated form stating all the inward supplies on behalf of a receiver taxpayer. This document can be accessed only in a read-only form mode and thus taxpayers cannot make any edits in GSTR-6A. 

The form GSTR-6A is for a specific tax cycle and the particulars mentioned in it change depending on the specifics that are provided by a counterparty supplier until the time ISD taxpayers upload their GSTR-6 for the same tax timeline. 

Must reads

How to File GSTR 9 Annual Return Using Offline Utility?

• 4 Mar 25
• 12 mins

GSTR 8 Return Filing: Format, Eligibility and Rules

• 24 Feb 25
• 7 mins

GSTR-6 Format

Here is the format of GSTR-6 you need to know:

• GSTIN of the ISD: It is a unique identification number assigned to every input service distributor after they complete GST registration. 
• Legal and Trade Name: This is basically the name of the business as registered under the GST law. 
• Return Period: It states the month for which the ISD will file returns. 
• Debit/Credit Note Particulars: In this part, one can notice critical details about the debit or credit notes issued.
• ITC Received and Distributed: This is the most vital part showing the detailed accounting of ITC received and how the ISD has divided it among its branches. 

To successfully file GSTR-6, it is essential to maintain all the important documents, as otherwise, it can lead to serious discrepancies later.

Details to be Provided in GSTR-6

The following information must be precisely declared while filing Form GSTR-6 online:

• Total input tax credit (ITC) received from eligible input services and products
• Any adjustments made to the earlier returns to reflect corrections
• Particulars on how the received ITC has been divided across recipient bodies
• Other related declarations or details

Prerequisites for Filing GSTR-6

There are multiple prerequisites for filing returns using GSTR-6. Here, we have summarised them for your convenience:

• GSTIN of the ISD: Before proceeding to file returns on the unified portal, the registered taxpayer should have a unique valid number.
• Legal and Trade Name: The name mentioned in the return form must match the name as declared while performing GST registration.
• Period of Return: Under this segment of the GSTR-6, an ISD should specify the month for which they are filing a tax return.
• Debit Note/Credit Note Details: It is another crucial head under which one needs to mention the debit and credit notes issued by them.
• ITC Received and Distributed: This condition mandates that the filer should reveal a detailed accounting of the credit collected and mention how it was distributed. 

Must reads

Understanding B2BA in GST: What It Means for Your Business

• 17 Aug 24
• 12 mins

Step-by-Step Guide to Adding Multiple Businesses to One GSTIN

• 14 Aug 24
• 11 mins

How to File GSTR-6?

Let us quickly understand the GSTR-6 return filing procedure. Here are the stages that you need to deal with:

1. Login and Navigation

First, you must access the official GST portal and log into your account by entering the correct credentials. Next, click on the 'Services' tab and choose 'Returns'. Then, on the 'Returns Dashboard' choose the applicable financial year and pick a suitable return filing period for GSTR-6.

2. Prepare GSTR-6

Once you have clicked on GSTR-6, now choose the ‘PREPARE ONLINE’ option and enter the necessary information directly via the portal. The details will cover:

• Data about ITC collected for distribution of credit
• Changes of details submitted through previous returns
• Additional relevant information

3. File and Submit GSTR-6 Return

When you have entered and reviewed all the inputs, you are now ready to file your GSTR-6. It covers the following steps:

• Choosing the ‘PROCEED TO FILE’ option
• Verifying the consolidated summary
• Submitting the document either with an EVC (Electronic Verification Code) or digital signature (DSC)

4. Late Filing Fee and Final Steps 

For those concerned, the late fee details appear on their device screens when they proceed to make the tax payment. After you have met the dues, you can upload the form. It will reflect a change in the status of submission as ‘Filed’. 

Conclusion

Filing timely GSTR-6 return is crucial for Input Service Distributors as it helps them maintain direct tax compliance. The due date for submitting this return is the 13th of month. To ensure that you never incur penalties or additional interest, you can rely on tax professionals to navigate the tax burden, allowing you to focus more on the revenue-generating aspects of your business.

💡If you want to streamline your payment and make GST payments via credit card, consider using the PICE App. Explore the PICE App today and take your business to new heights.

FAQs