What is GSTR-6?

GSTR-6 is one of the GST returns filed under the Goods and Services Tax (GST) system in India. 

Full-Form: Goods and Services Tax Return for Input Service Distributor

Applicable to: Input Service Distributors (ISDs). ISDs are entities that receive input tax credit on input services and distribute it to its units/locations.

Frequency of filing: GSTR-6 has to be filed by ISD on a monthly basis by the 13th of the succeeding month.

Key Details Required: In the GSTR-6, the ISD is required to provide the following details:

ISD Details - Name, GSTIN, period for return etc.

Distribution of input tax credit

Tax payment details

Details of other supplies etc.

Why is GSTR-6 Important?

Tracks distribution of credit: GSTR-6 provides details about the distribution of input tax credit by an ISD (Input Service Distributor) to its units. This helps government authorities track how credit is flowing across business units.

Ensures proper account of credit: It ensures that the credits distributed are properly accounted for and utilized by the respective units. This maintains integrity of input tax credit under GST.

Supports tax compliance: Filing of GSTR-6 on a monthly basis allows authorities to monitor that input credit distribution is happening as per GST laws. It thus promotes tax discipline.

Enables reconciliation: The details in GSTR-6 can be used by authorities to cross-check and reconcile the ITC being claimed by units, ensuring there is no duplicate or fraudulent credit claimed.

Audit trail: As GSTR-6 captures granular details on input credit distributed, it maintains a clear audit trail that can be analyzed during GST audits.

When is GSTR-6 due?

GSTR-6 has to be filed by the 13th day of the month succeeding the relevant tax period.

For example:

If the tax period is July 2023, then GSTR-6 has to be filed by 13th August 2023.

If the tax period is August 2023, then GSTR-6 has to be filed by 13th September 2023.

Who should file GSTR-6 ?

The following entities are considered ISDs and need to file GSTR-6:

1. Entities having units in multiple states/regions and centrally receiving & distributing input tax credits on common services to these units.

2. Head offices receiving input services that are then distributed to branch offices across states. 

3. Entities operating under cost sharing arrangements based on pooling resources and centralizing activities like procurement, accounting, HR etc.

So in summary, any entity that acts as an Input Service Distributor - meaning it centrally receives input credit on services that are commonly used across its various units/offices and then distributes this credit to such units/offices - needs to register as ISD and file monthly GSTR-6 returns.

Few examples of organisations having ISD registration:

- Banks with head office and branches 

- Companies having manufacturing plants in different states

- MNCs having offices across India

Such organisations need to file GSTR-6 to report input tax credit distribution.

How to revise GSTR 6?

Here are the key details regarding revising GSTR-6 (Goods and Services Tax Return for Input Service Distributors):

GSTR-6 filed for a particular tax period can be revised within the prescribed timelines only.

The revision can be done by filing an amended GSTR-6 return for that tax period within the timeline.

The due date for revising GSTR-6 return is the month succeeding the month in which the original GSTR-6 was filed.

For example:

Original GSTR-6 for Jan 2023 filed on 13th Feb 2023.

Last date for revising this GSTR-6 is 13th March 2023.

4. To revise, log in to the GST portal > Returns Dashboard > Select period for which revision is needed > From Downloads tab, revise data in json file as required > Upload json file & submit revised GSTR-6.

5. Details that can be changed in revision include distribution amounts, tax payment values etc. Details wrongly entered or missed previously can be updated in revision.

So in summary - GSTR-6 has to be revised by filing an amended return within prescribed timelines, by changing data and filing json on GST portal for that tax period. Only details for specific tax period can be changed.

Details to be provided in GSTR 6

The key details that need to be provided by Input Service Distributors (ISDs) while filing GSTR-6 are:

1. GSTIN (GST Identification Number)

2. Legal name of the registered person

3. Tax period for which GSTR-6 is being filed

4. Input tax credit distributed to units, separately for IGST, CGST, SGST/UTGST

5. ISD credit received and distributed

6. Institution wise distribution of input tax credit (name, GSTIN, amounts distributed)

7. Total ITC available for distribution in the current period

8. Total ITC distributed to units in the current period 

9. Tax payment details like tax paid, late fee, interest etc.  

10. Any other amounts collected under GST like TDS credit received etc.

11. Signature/E-sign of authorized signatory 

Additional details may be required like details of inward supplies, import of services etc. Statements containing granular break-up like statement 1 for distribution of credit etc need to be provided. All amounts to be reported for the relevant tax period.

Hence GSTR-6 captures comprehensive information on how input credits have been distributed by an ISD across its business units in that tax period along with the relevant amounts involved.

Frequently asked questions

What is the penalty for GSTR 6?

GSTR-6 Penalty One day penalty of ₹50 (₹25 CGST + ₹25 SGST) subject to a maximum of ₹5,000 for a return. Additional interest will be applied for any late payment according to GST rules.

What is the due date for GSTR 6?

The Input Service Distributors (ISDs) are required to file returns by the 13th of the succeeding month for their compliance in the distribution of credit.

What is the difference between GSTR1 and GSTR-6?

The GST return GSTR-1 records the outward supplies by a regular taxpayer, while GSTR-6 is related to ITC reconciliation and distribution for the Input service distributor.

What is the turnover limit for GSTR-6?

No turnover limit applies; GSTR-6 is mandatory for registered Input Service Distributors under GST laws.