written by Khatabook | December 10, 2021

Know About Return Filing, Format, Eligibility, and Rules of GSTR 6

So, what is GSTR 6? The Goods and Services Tax (GST) Return 6 is a monthly document/statement that firms also Input Service Distributors (ISD) must file. This return must include information about inbound supplies and purchases made from other registered taxpayers (B2B). Information about the input tax credit that was dispersed among the organization's branches must also be present.

Who is an Input Service Distributor?

Input Service Distributor has the following features under GST - 

  • The Input Service Distributor distributes Input Tax Credit (ITC) to different branches having the same PAN but different GST numbers.
  • The Input Service Distributor will be required to issue an ISD Invoice that clearly states that this invoice is purely for ITC distribution.
  • The ISD receives the invoices for the services used by each branch, and the input tax credit is distributed proportionally by the ISD to its various branches.

The input service distributor can only distribute credit on invoices for services and not for capital goods.

Rules Governing GSTR-6 Return Filing

  • GSTR-6 Return Filing is governed by Rule 39 of Central Goods and Services Tax (CGST) Rules.
  • As per Rule 39 of CGST Rules, an Input Service Distributor must comply with the requirements relating to return filing every month. 
  • Every month GSTR 6 is filed by ISD. Generally, it is to be submitted by the 13th of the next month. Only the government can extend the date. 
  • Apart from this, credit for the purchase invoices can be taken in GSTR 3B to be filed each month. These purchases can be verified from Form No. GSTR2A.
  • There is no need for an ISD to file GSTR 9 and GSTR 9C. This means that there is no need for an ISD to file the Annual Return.

An ISD cannot accept any bills of reverse charge. But why? The reason behind this is that the ISD facility is only for the purpose of credit distribution.

GSTR 6 Due Dates for filing the return 

  • The GSTR-6 form for a given month can be filed at the end of that month.
  • The deadline to file this return is the 13th day of the next month
  • For example, if you're reporting the GSTR-6 for February 2019, you must submit it by March 13th.

Mandatory Requirements for filing GSTR 6

To file the GSTR-6, 

  • You must have a valid Goods and Services Tax Identification Number (GSTIN) of 15 digits.
  • Your company's / firm’s sales should be larger than Rupees 20 Lakhs.
  • This return has to be filed by an Input Service Distributor
  • Non-resident taxpayers are exempt from filing GSTR Form 6.
  • Credit distribution of services can only be made through this form. The credit of capital goods and input is not allowed to be distributed through this form. 
  • A valid credit distribution document should be made by an Input Service Distributor under Rule 54 of CGST rules so as to distribute credit with the help of GSTR 6.

How to File GSTR 6?

The GSTR 6 format collects information on inward supply and ITC. Let's take a closer look at each section.

GSTIN: Enter your unique 15-digit Goods and Services Taxpayer Identification Number (GSTIN) based on your PAN.

Name of the Taxpayer: This form should contain the name of your company's registered taxpayer.

Period – (Month – Year): Indicate the period for which the GSTR-6 is being filed.

Supplies from Registered Taxable Persons – 

Under this part, you, the ISD, must declare all purchases you made from other businesses (who are registered under GST) as well as the amount of input credit/tax refund you received this month against various tax heads (CGST, SGST, and IGST). This includes purchases when the tax is collected through a reverse charge system.

The good news is that this information will be generated automatically once the vendors from whom you purchased goods and/or services file their GSTR-1 or GSTR-5 returns (if they are foreign taxpayers).

If the products were delivered in numerous lots, you must additionally submit invoice level details for those purchases.

You can amend/modify the details of purchases made during previous tax periods using Section 4A of the GSTR-6. If you do, you must also provide proof of both the original and updated invoices.

Details about Credit Notes and Debit Notes

You can include the information of all credit and debit notes you've issued for transactions this month in this section.

You can make changes to all debit/credit notes issued during previous tax periods using Section 5A of GSTR-6.

How to reflect Input Service Distribution?

As an input service distributor, you must give the names and addresses of all branches that get input credit and their relevant GSTINs and the amount of ISD credit distributed under various GST components (IGST, CGST, and SGST).

Using Section 6A of GSTR-6, you can change the amount of credit distributed in previous tax periods. If you make changes to this data for a certain tax period, you must submit the original and amended versions of the transactions as proof.

Also Read: Types of GST in India - What is CGST, SGST and IGST?

What is ISD Ledger?

  • This part contains a record of all transactions between a company's head office and its branches to distribute the ITC received by the head office to all its branches. 
  • The Input Tax Credit received, Input Tax Credit returned, and Input Tax Credit disbursed are all recorded in this ledger, divided into three sections: SGST, CGST, and IGST.
  • After completing all sections of the GSTR-6, you must declare the document's accuracy and sign it electronically.

How to Revise GSTR 6?

There is no provision in the GST law for GSTR 6 to be revised. Any errors in the return can be fixed when you file GSTR 6 the following month.

What is GSTR 6A?

GSTR 6A is a form automatically prepared based on the information submitted by an Input Service Distributor's suppliers in their GSTR 1. It is a read-only version. An ISD can only view this document.

Details to be provided in GSTR 6 along with GSTR 6 format

The following details need to be provided in GSTR 6:-

Table 1 

  • Details about GSTIN:  GSTIN stands for Goods and Services Taxpayer Identification Number.
  • The GSTIN is a 15-digit number that includes a two-digit state code, a ten-digit permanent account number, a three-digit state, future usage, and check-digit. When we file returns, it is pre-populated.

Table 2 

  • Name of Taxpayer: This is the name of a non-resident taxpayer who owns a business and supplies goods and services outside of India. This field is also auto-populated when you file your return.
  • Month-Year (Period): The taxpayer must select the month and year for which GSTR-6 is being submitted from a drop-down menu.

Table 3

  • Details about Input Credit Received - Details Of Registered Taxpayer Inward Supplies.
  • Most information, particularly inward supply details, gets auto-populated from the counterparty's GSTR-1 and GSTR-5. The person must fill out all Input tax credit details. 

Table 4 

  • Details about Ineligible and Eligible ITC – The information is auto-populated under Table 3.

Table 5

 

  • Credit available as CGST, SGST, or IGST – Credit details under various heads of CGST, SGST, and IGST are reflected in it. The information in this section pertains to the ITC listed in table-4. 

Table 6 

  • Amendments if any to be made to Table no. 3

Table 7 

  • Mismatches and reclaims of ITC - Any adjustments, mismatches, or reclaims in input tax credit under the CGST, SGST, or IGST should be recovered under this heading.

Table 8

  • Distribution of ITC mentioned above - This section covers the amount of credit that has been distributed (to dealers) in tables 6 and 7 under the CGST, IGST, and SGST.

Table 9

  • Redistribution of credit - If the tables mentioned earlier are incorrectly filled with money sent to the wrong person, modifications and redistribution are available under this heading.

Table 10

  • Late fee Payable – This table has to be filed if any late fees are payable on account of late submission of return.

Table 11

  • Details about Refunds – It contains details about the refund.
  • The Input Service Distributor must sign the form electronically at the end of the filing process to ensure that the information is correct.

Interest and Late filing fees of GSTR 6

There are penalties and late fees for not filing GST on time, such as late payment of taxes or delays in completing returns, among the various laws of GST. According to the GST laws, failing to pay GST taxes on time will result in an annual interest rate of 18%, plus a daily late fee for the period following the due date of tax payment. 

Example: As a taxpayer, if you miss the GST payment deadline for a given month, you will still be forced to pay the tax, but you will also be compelled to pay additional interest at the rate of 18%, or 1000*18/100*1/365= Rs. 4.93 per day approx. The interest will increase by approximately Rs. 4.93 for each day you do not pay tax after the due date.

Suppose a taxpayer fails to file their return by the due date. In that case, they will be charged a late fee of Rupees Fifty per day, i.e. Rupees 25 per day in each CGST and SGST (in case of any tax liability) and Rupees 20 per day, i.e. Rupees 10 per day in each CGST and SGST (in case of Nil tax liability), subject to a maximum of Rs. 5000/-, from the due date.

Also Read: All you Need to Know About Composition Scheme under GST

Conclusion

We hope that this article has provided you with in-depth knowledge about GSTR 6, who is required to file it, the due dates of filing GSTR 6, the procedure of filing, details to be provided in GSTR 6, late filing fees, and interest on GSTR 6.

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FAQs

Q: What happens after GSTR-6 is filed?

Ans:

Let's take a general look at what happens after Form GSTR-6 is submitted:

  • An Acknowledgement Reference Number (ARN) is produced when the Form GSTR-6 Return is correctly filed.
  • An SMS and an email for acknowledgement are issued on the applicant's registered mobile number and email ID.
  • If any changes or additions are made to Form GSTR-6, the counterparty supplier's Form GSTR-1/5 is auto-populated with the updated information.

Q: What are the modes through which GSTR 6 can be filed?

Ans:

GSTR 6 can be filed through Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

Q: Can eligibility of ITC be marked at the individual level?

Ans:

No, the applicable Input Tax Credit in Tables 3 and 6 is auto-updated depending on the invoice/CDN uploaded (based on the action made on the Auto-generated from Form GSTR-1/5) in Tables 3 and 6. Only at the moment of credit distribution to units does eligibility need to be considered.

Note: Input Tax Credit (ITC) for distribution should only be allowed for inward supplies where the Place of Supply (POS) and the State where the ISD is registered are the same.

Q: What are the prerequisites of filing GSTR 6?

Ans:

The following are prerequisites for filing Form GSTR 6:

  • The recipient must have been registered as an ISD and must have a valid GSTIN.
  • The recipient's login credentials should be valid (i.e., User ID and password)
  • A valid and non-expired/unrevoked Digital Signature Certificate is necessary for the recipient (DSC which is mandatory for companies, LLPs and FLLPs)
  • For authentication by EVC, the Recipient must have an active mobile number included in the registration data at the GST Portal at the time of enrolment/registration or update thereof.

Q: Where can we see auto-populated invoices in GSTR 6?

Ans:

Once the supplier has successfully saved Form GSTR-1/Form GSTR-5, the auto-populated invoices will appear in Form GSTR-6A (Table 3 and 4) and Form GSTR 6. (Tables 3, 6A, 6B, and 6C). Once the supplier has filed the GSTR 1/5 form, action on these invoices may be done.

Q: At which website GSTR-6 is to be filed?

Ans:

The GSTR-6 form is available through the GST Portal (https://services.gst.gov.in/services/login) after logging in to the Returns Dashboard. After that click on service followed by returns where you can fill in the respective form.

Q: What are the late fees levied in case of filing of GSTR 6 beyond the due date?

Ans:

Late fee of Rupees 50 per day, i.e. Rupees 25 per day in each CGST and SGST (in case of any tax liability) and Rupees 20 per day, i.e. Rupees 10 per day in each CGST and SGST (in case of Nil tax liability), subject to a maximum of Rs. 5000/-, from the due date is the late fees payable in case of filing GSTR 6 beyond the due date.

Q: What is the due date of filing GSTR-6?

Ans:

The due date of filing GSTR 6 is the 13th of the following month

Q: Which Rule of CGST Rules governs the filing of GSTR-6?

Ans:

Rule 39 governs the filing of GSTR 6 by an Input Service Distributor.

Q: Who is required to file GSTR 6?

Ans:

 An Input Service Distributor is required to file GSTR 6. 

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