Introduction
GSTR-6 is a monthly GST return filed by Input
Service Distributors (ISD) to distribute Input Tax Credit (ITC) on
services received to their branches or units.
It is mandatory for all taxpayers registered as ISD
under GST and helps businesses manage tax credits effectively while
ensuring compliance with GST laws.
Who is an Input Service Distributor (ISD)?
An Input Service Distributor (ISD) is a business that
receives invoices for input services and distributes the tax credit
to its branches or units that have the same PAN but different GSTINs.
Example of an ISD
- A company's
head office in Mumbai receives an invoice for consulting services
worth ₹1,00,000 with ₹18,000 GST.
- The
head office does not provide outward supplies but distributes
this ITC to its branches in Delhi and Chennai.
- The
Mumbai office files GSTR-6 and passes ITC to the Delhi and
Chennai branches based on their usage.
Who Needs to File GSTR-6?
Only Input Service Distributors (ISDs) registered
under GST must file GSTR-6.
Who is NOT Required to File GSTR-6?
- Regular
GST taxpayers
- Composition
scheme taxpayers
- Non-Resident
Taxable Persons (NRTPs)
- E-commerce
operators
Due Date for Filing GSTR-6 (2025 Updated)
- GSTR-6
must be filed by the 13th of the following month.
Example:
- GSTR-6
for January 2025 must be filed by 13th February 2025.
Late Fee: ₹50 per day (₹25 CGST + ₹25 SGST) for
delays, with a maximum of ₹10,000.
Details to be Reported in GSTR-6
GSTR-6 consists of multiple sections where businesses
must enter details about ITC received, distributed, and reversed.
1. Basic Information
- GSTIN
of the ISD
- Legal
name and trade name
- Tax
period (month and year)
2. Details of ITC Received (Auto-Populated from GSTR-1
& GSTR-5)
- Invoice
details of input services received from suppliers
- Supplier
GSTIN, invoice number, date, taxable value, and GST amount
- Separate
columns for CGST, SGST, IGST, and Cess
3. Total ITC Available for Distribution
- Consolidated
ITC available for CGST, SGST, IGST, and Cess
- Auto-calculated
based on ITC received from suppliers
4. ITC Distribution to Branches (GSTIN-wise)
- Amount
of ITC distributed to each branch/unit
- GSTIN
of recipient branches
- Separate
distribution of CGST, SGST, IGST, and Cess
5. ITC Reversal (If Any)
- Details
of any ITC that needs to be reversed due to incorrect credit claims
6. Late Fees & Interest (If Applicable)
- Late
fees, if the return is filed after the due date
Step-by-Step Process to File GSTR-6
Step 1: Login to GST Portal
- Visit
www.gst.gov.in
and log in with GSTIN and password.
Step 2: Select GSTR-6
- Go
to the Returns Dashboard, select the return filing period, and
choose GSTR-6.
Step 3: Verify Auto-Populated Data
- Details
of ITC received from suppliers appear automatically from GSTR-1
& GSTR-5 filed by vendors.
Step 4: Enter ITC Distribution Details
- Enter
the GSTIN of recipient branches and distribute ITC accordingly.
Step 5: Verify Tax Calculations
- Ensure
correct distribution of CGST, SGST, IGST, and Cess.
Step 6: Submit & File the Return
- Click
"Submit", verify the details, and file the return
using DSC or OTP-based verification (EVC).
Example of GSTR-6 Filing
Example Business Details
- Company:
XYZ Ltd. (Registered as ISD in Mumbai)
- Service
Received: Consulting services from ABC Pvt. Ltd.
- Invoice
Amount: ₹2,00,000
- GST
Paid: ₹36,000 (18% GST: CGST ₹18,000 + SGST ₹18,000)
- Branches
Using ITC: Delhi (60%) & Chennai (40%)
ITC Distribution in GSTR-6
|
Branch |
GSTIN |
CGST Distributed |
SGST Distributed |
Total ITC Distributed |
|
Delhi |
07ABCDE1234F1Z5 |
₹10,800 |
₹10,800 |
₹21,600 |
|
Chennai |
33ABCDE1234F1Z7 |
₹7,200 |
₹7,200 |
₹14,400 |
|
Total |
- |
₹18,000 |
₹18,000 |
₹36,000 |
- XYZ
Ltd. distributes ITC worth ₹36,000 to Delhi and Chennai branches.
- Delhi
branch claims ₹21,600, and Chennai branch claims ₹14,400 as
ITC.
Penalties for Late Filing of GSTR-6
Late Fee:
- ₹50
per day (₹25 CGST + ₹25 SGST).
- Maximum
penalty: ₹10,000 per return.
Additional Interest:
- 18%
per annum on the outstanding tax amount.
Consequences of Non-Filing:
- Branches
cannot claim ITC on distributed services.
- Tax
liability increases, affecting cash flow.
- Legal
action by tax authorities.
Key Differences Between GSTR-6 and Other GST Returns
|
Feature |
GSTR-6 |
GSTR-3B |
GSTR-1 |
|
Who Files? |
Input Service
Distributors (ISD) |
Regular taxpayers |
Regular taxpayers |
|
Filing Frequency |
Monthly |
Monthly |
Monthly/Quarterly |
|
Includes ITC
Distribution? |
Yes |
No |
No |
|
Includes Outward Supplies? |
No |
Yes |
Yes |
|
Late Fee |
₹50/day |
₹50/day |
₹50/day |
Frequently Asked Questions (FAQs)
1. Can ITC be distributed to branches in different
states?
Yes, ITC can be distributed to branches located in
different states, but IGST must be used for interstate distribution.
2. What happens if ITC is distributed incorrectly?
Incorrectly distributed ITC must be reversed in
future GSTR-6 returns.
3. Can an ISD claim ITC on goods?
No, an ISD can only claim ITC on input services (not
goods).
4. Can an ISD distribute ITC without filing GSTR-6?
No, ITC cannot be distributed until GSTR-6 is
filed.
5. Can an ISD claim a refund?
No, an ISD cannot claim a refund because ITC is distributed,
not utilized.
Conclusion
GSTR-6 is essential for businesses registered as ISDs
to distribute ITC properly to their branches.
- Filed
monthly by the 13th.
- Includes
ITC received, distributed, and reversed.
- Failure
to file results in penalties and compliance issues.
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