GSTR-6 Return Filing Under GST Portal

Ashish M. Shaji

28 Oct, 2020

For Input Service Distributor GST Registration is mandatory. After the registration is completed they are required to file GSTR-6 return along with other GST Returns. Through this return, the input tax credits have to be distributed.

In a big size business, it’s natural that there is one head office and several branch offices all over India. In the most of the big companies there is centralized purchasing for better financial control and this situation leads to accumulation of input tax credit and ultimately input tax credit has to be distributed among the branch based on the actual utilization by the respective branch.

An input service distributor entity after taking into the account the centralized purchase, shall adjust the debit or credit, not on purchase, and shall submit combined online GSTR-6 with the details of invoices against input tax credit.

Every Input Service Distributor shall, after adding, correcting or deleting the details contained in FORM GSTR-6A, furnish electronically a return in FORM GSTR-6. Under the ISD Process, HO has to obtain separate registration as ISD and can distribute input tax credit among the branch as per the distribution method suggested by GST model law^[1].

Why is GSTR-6 crucial?

As GSTR-6 contains information of all documents issued for Input Tax Credit distribution and manner of credit and tax invoice distribution on which credit is received, GSTR-6 is crucial. GSTR-6 is to be filed by every Input Service Distributor even if it’s a nil return. 

Who is required to file GSTR-6?

All input service distributors should file return. However, it may be noted that Composition dealers, Non-resident taxable person, taxpayers liable to collect TCS, taxpayers liable to deduct TDS, compounding taxable person are exempted from filing the return. 

Due date of GSTR-6 Return filing

The due date for filing this return is 13 of the next month as per the GST Act.

10 Key Points to Know About GSTR-6 Return Filing

1. GSTIN – Every input service distributor register under the GST Act, shall be allotted as 15 digit goods and service taxpayer identification number.
2. Name of the Registered Taxable Person as ISD– Name of the taxable person, will also be auto-populated at the time of logging into the common GST website
3. Period –A taxable person registered as Input service distributor has to file 2 return in a year and while filing returns can select a period from a dropdown in the GSTR-6.
4. Details of inward Supplies – The registered input service distributor has to provide the invoice details of supply of goods or services received along with input tax credit availed under the current tax period. All inward supply and input tax credit shall be auto-populated from GSTR-1 & GSTR-5 respectively. The separate details for ITC are available for CGST/SGST or IGST. In case there is a supply of goods or services in instalment then ITC can be claimed when the last lot of supply was made.
5. Modification to the details of inward supplies – Any modification in the details of inward supplies received of the earlier tax period and then such modification has to be reported under this section of GSTR-6.
6. Details of Credit or Debit Notes – As an Input service distributor are required to report about the debit or credit note raised in the tax period and also need to provide counterparty invoice no and other details. The tax difference due to debit or credit note has to be calculated here.
7. Modification to Details of Credit or Debit Notes– If there is any modification or change in earlier issued credit or debit notes then it has to be reported under this head.
8. Details of Input Service Distribution – Distribution of input tax credit is one of the complex business situations for Head office. ISD has to provide GSTIN of the Input service receiver branch. They need to specify ISD under GST heads like IGST, CGST & SGST.
9. Modification of Input Service Distribution – Any revision in input tax credit of earlier period can be reported here with invoice reference number and branch GSTIN.
10. ISD Ledger and return uploading – ISD ledger maintains details of input credit received and distributed or reversed i.e. Once everything is done from point 1 to 10, GSTR-6 has to be filed and signed either by DSC or Aadhar OTP verification.

Conclusion

 It may be noted that there is no provision of revising GSTR-6 return filing. In case of any mistake in the return, then it can be rectified while filing GSTR-6 of the succeeding month.

Read our article: A Complete Detail on GST on Liquidated Damages