Know All About Filing GSTR 6| Return for ISD| Input service Distributor | Due dates and Penalty

GSTR-6 return filing

If you are registered under GST, as an Input Service Distributor (“ISD”), you will have to file GSTR-6 return within its given deadline. The GSTR 6 form contains all the details regarding your purchase invoices and most of the information in this return is auto-populated. In this article, we will talk about every detail you need to know about the GSTR-6 return.

It is important to note that ISD registration is separate from normal registration under GST. Therefore, if you have registered as a regular supplier under GST and you are liable to register as ISD also. Then you need to apply for a separate GST Registration as ISD.

1. Important Features of GSTR 6

  • Every Input Service Distributors needs to file GSTR 6 form
  • GSTR-6 is a monthly return filing form.
  • The due date of the return is 13th of the following month
  • Taxpayers should furnish all the details of their ISD Invoice issued for distribution of credit along with the Input Tax credit (“ITC”) received.

Example:

Head office-X is located in Delhi and it has branches registered in the state of UP and Haryana under the same PAN. The head office enters into a contract with a supplier of Manpower to supply security guards for head office and branch offices. Manpower Supplier raises a single invoice on the head office. As part of the credit has been received by the head office on behalf of branch offices in UP and Haryana.

Therefore, the Head office will transfer proportionate credit to branch offices as ISD.

2. Due Date to File GSTR-6 Return

Businesses need to file monthly return through GSTR-6 within the 13th of the succeeding month. Say, for example, a business is registered as ISD in Mumbai and have their branches spread across Bangalore, Hyderabad, Gurgaon, and Kolkata. Now, let’s assume that they need to file the return through GSTR-6 for the month of January 2020. Hence the deadline to file GSTR-6 return will be 13th February 2020.

However, GSTR-6 will be available for filing only after the 10th of the succeeding month. So, effectively you have 3 days for filing GSTR-6.

3. What Are The Information That Needs To Be Furnished While Filing GSTR-6?

Go through the following and learn about all the details that you need to submit while filing GSTR-6.

3.1 Table 1 & 2: The Taxpayer Details

  1. Year and Month: Here you have to enter the period for which you are filing the GSTR-6 return.
  2. GSTIN: Businesses registered under the GST regime have a unique Goods and Service Identification Number. Its a 15 digit number beginning with 2 digits as state code, 10 digits as permanent account number, and other 3 digits acts as a check digit. It gets auto-populated at the time of return filing.
  3. Name of the taxpayer: The second row is for entering your business detail such as the Legal name of the registered person and the trade name. It will also get auto-populated.
File GSTR-6

3.2 Table 3: Information Related to Input Tax Credit Received

  • Here the ISD needs to furnish all the information related to the supplies received and the input credit amount. 
  • The information related to inward supply gets generally auto-populated from the GSTR-1 and GSTR-5 form. This information will auto-populate in GSTR-6A of ISD. 
  • But ISDs will have to file the details of all the credit covered under IGST, CGST or SGST.
GSTR-6 return

3.3 Table 4. Total Eligible or Ineligible ITC for the given tax period

Most of the information gets auto-updated from table 3. You need to cross-check the amount of eligible and ineligible ITC.

GSTR-6

3.4 Table 5: Credit Available under IGST, CGST, and SGST

  • Here in this table, the ISD require to furnish the information related to the distribution of ITC under CGST, SGST, and IGST.
  • For the distribution of ITC, ISD needs to issue separate ISD invoices. The format for the same is given in GST law.
  • Invoice wise detail is required in this table.
Filing GSTR-6 Return

3.5 Table 6: Amendments in Data Furnished in The Previous Returns in Table No. 3

The ISD can make corrections in the invoice data for the inward supplies furnished in the earlier returns. All the information related to changes in the invoices has to be here.

GSTR-6 return filing

3.6 Table 7: Input Tax Credit Miss-matches and Claims Distributed

Form GSTR-6

The taxpayer can do the changes to the total Input Tax Credit in case of mismatch or ITC reclaimed on rectification of mismatch.

3.7 Table 8: Distribution of Input Tax Credit Reported in Table No 6 and 7

In this table, you can make the changes related to the credit amount distributed to dealers with respect to the data entered in the above two tables(6 & 7).

GSTR-6 returns

3.8 Table 9: Redistribution of Input Tax Credit Distributed Among the Wrong Recipient

If the ISD has made any improper distribution of the Input Tax Credit, he can rectify that through this table.

Form GSTR-6 Details
GSTR-6

3.9 Table 10: Late Fees 

If you have missed the deadline of filing the GSTR-6 return then you can enter the amount of the Late fee in this table

late fees

3.10 Table 11: The Amount of Refund Claimed from the Electronic Cash Ledger

Here in this table, the taxpayer can put the details associated with the refund claimed from the electronic cash ledger

refund under GSTR-6

4. Frequently Asked Questions

  1. Who Requires To File The form GSTR-6 and is it mandatory to file the form?
    Taxpayers registered as Input Service Distributor mandatorily needs to file monthly return through the GSTR-6 form.
  2. Is it necessary to take measurable action for all the invoices or Credit Note / Debit Note auto-populated in the Form GSTR-6?
    Yes, you need to take mandatory actions against all the invoices or CDN auto-populated while filing GSTR-6 unless you will not be able to file the return.
  3. What happens if someone files GSTR-6 before filing the Form GSTR-1 and GSTR-5?
    If a business entity fails to file GSTR-1 and GSTR-5 within the 10th of the corresponding month than, there will be no auto-population of the B2B information available. In such a case the Input Service Distributor has to include missing invoices or CDN through “ADD MISSING INVOICE DETAILS/ADD CREDIT NOTE/DEBIT NOTE” column and the information related to this will be available under the “Uploaded by Supplier” section.
  4. What are the consequences of the late filing of return?
    If you fail to file GSTR-6 by the due date then you need to pay a penalty of INR 50 per day for the defaulting period.

Read More: GSTR-3B: Return Filing, Format, Due Date

DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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