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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.
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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.
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.
The due date for filing this return is 13 of the next month as per the GST Act.
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.
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Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on corporate law. He is a creative thinker and has a great interest in exploring legal subjects.
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