GSTR 6: How to File GSTR 6 on GST Portal?

GSTR 6 is a return which has to be filed monthly. It has to be furnished by every Input Services Distributor. This return includes all the details of invoices on which credit has been received. The details includes input tax credit (ITC) received and distribution of ITC by the input service distributor. For offline filing of GSTR 6, Goods and Service Tax Network (GSTN) has provided an excel based GSTR 6 offline utility. In this article you will get a complete knowledge about this GSTR.

Concept of Input Service Distributor (ISD)

Input Service Distributor is office of a business entity which receives tax invoices for services used by its branches. It distributes the tax paid among the branches of the business on a proportional basis and an ISD is issued.


Due date and eligibility to file GSTR 6

As per GST Act the due date for filing GSTR 6 is 13th of next month. If the GSTR 6 will be filed after the due date, the taxpayer is charged with a late fee as a penalty. The late fee is now Rs. 50 per day of default. However there is no fees for delay in filing of Nil return.
Every input service distributor is required to file GSTR 6.


Where to file GSTR 6?

GSTR-6 form can be filed on the GST Portal. For filing the taxpayer needs to login lthe portal.

  • Then click on the services.
  • Click on returns and select returns dashboard.

Importance of GSTR 6

GSTR 6 is an important GSTR form. It includes all the details of the documents that are issued for distribution of Input Tax Credit. It even contains the manner of distribution of credit and tax invoice on which credit is received.


Revision of GSTR 6

Revision of GSTR cannot be done. There is no regulations related to revision of GSTR 6 under GST Act.

If the taxpayer makes any mistakes while filing GSTR 6 in a month, the mistakes can be corrected while filing the GSTR 6 for the following month.


Pre-conditions for filing Form GSTR-6

To view the GSTR 4A form one has to follow various steps online. They are as follows :


Pre-conditions for filing of Form GSTR-6 are as follows:

  • Recipient should be Registered as ISD and should have an active GSTIN.
  • For the period in which it was active recipient will have an option to file Form GSTR-6 for cancelled GSTINs.
  • Recipient should have valid login credentials (User ID and password).
  • Recipient should have valid and non-expired or unrevoked Digital Signature Certificate
  • Recipient should have with him or her an active mobile number which is indicated in his registration details that are furnished to GST Portal at the time of registration or amendment thereof for authentication through EVC.

Modes of signing Form GSTR-6

There are two modes for filing of form GSTR 6. They are:

Digital Signature Certificate (DSC)

Digital Signature Certificates (DSC) are the signatures that is in electronic format of physical or paper certificates. It can be presented electronically to prove one’s identity, cess internet or sign documents digitally. In India, DSC are issued by authorized Certifying Authorities.
The GST Portal accepts only PAN based Class II and III DSC.

Electronic Verification Code (EVC)

The Electronic Verification Code (EVC) authenticates the identity of the user by generating an OTP at the GST Portal. The OTP is sent to the registered mobile phone number of the authorized Signatory filled in part A of the Registration Application.


Details of GSTR 6

Every Input Service Distributor is required to file GSTR 6. They can know the details of their input credits from GSTR 6A which is auto generated.

There are 11 heads under GSTR 6 for which the following details are to be furnished.

  • GSTIN of the dealer is to be furnished ( for whom the return is to be filed ).
  • Name of the registered taxpayer (auto populated)
  • Invoice wise details of all the inputs received that is distributed as an Input Tax Credit (ITC) (auto populated)
  • Total of all the input tax credits of ISD segregated into Total ITC/Eligible ITC/ Ineligible ITC to be distributed.
  • This is the head where all the distribution of Input Tax Credit is furnished. This is the major part of the return.
  • Any Amendments which are required to be made in information furnished in earlier returns in Table No. 3.
  • The changes to the total of Input Tax Credit due to mismatch or ITC reclaimed on rectification of mismatch can be done in this head.
  • Any changes to be made to the amount of credit distributed to dealers can be furnished here.
  • Redistribution of ITC distributed to a wrong recipient – Any wrong distribution of Input Tax Credit to the dealers in the previous returns is mentioned in this head .
  • Late Fees that is paid by the dealer has to be entered in this head.
  • This table will contain details of refund to be claimed from the electronic cash ledger.

What happens after filing Form GSTR-6?

After filing Form GSTR-6:

  • Authorized Reference Number is generated after successful filing of the Form GSTR-6.
  • An SMS and an email is sent to the applicant on his registered mobile and email id.
  • In case of modifications or additions in Form GSTR-6, the details are auto-populated in Form GSTR-1 or Form GSTR 5 of counterparty supplier.

What is GSTR 6A?

GSTR 6A is an automatically generated GSTR form that is based on the details provided by the suppliers of an Input Service Distributor in their GSTR 1.

It is a read-only form, so any changes to be made in this return can be done while filing GSTR 6. GSTR-6


Features of GSTR 6 Offline Utility

GSTR 6 can be filed offline. Details in following heads of GSTR 6 return can be added by the taxpayer using the GSTR 6 Offline Utility:

  • Invoice Details (3–Input tax credit received for distribution) – B2B
  • Credit/Debit note Details (6B Debit Notes or Credit Notes) – CDN
  • Distribution of ITC (5, 8-Distribution of the input tax credit (ISD invoices and ISD Credit Notes))
  • Redistribution of ITC (9-Redistribution of ITC distributed in earlier returns)
  • Amendments to invoice Details (6A-Amendment of Information furnished in earlier returns in Table3) – B2BA
  • Amendments to Credit/Debit note details (6C-Amendment of Debit Notes/Credit Notes Received) – CDNA

Steps to Prepare GSTR 6 Return Utility

There is a fixed procedure to prepare GSTR 6 return utility. The taxpayer needs to perform following steps to prepare GSTR 6 return utility.

  • Enter details in the GSTR 6 worksheets
  • Validate the details entered using ‘Validate Sheet’ button
  • Generate JSON (JSON) file
  • Upload Generated JSON on GST Portal and Preview the details uploaded
  • File GSTR 6 return on GST Portal

Late fees for delayed filing of GSTR 6

The late fees for non filing or filling after the due date of GSTR 6 is Rs 50 per day , upto a maximum of Rs 10,000 per return.


Conclusion

GSTR 6 is a mandatory return to be filed by the Input Service Distributors. This form includes various details of the invoices on which credit has been received. This return is furnished every month. The return should be filed keenly as there is no option of making changes once the return is filed. For any changes due to mistakes while filing return for this month can only be made while preparing GSTR 6 for next month.

Frequently Asked Questions (FAQs)

Q- Who needs to file GSTR 6?

All the Input Service Distributors are required to file GSTR 6.


Q- Is there any late fee for delay in filing GSTR 6?

Yes, for delay in filing of GSTR 6 one has to pay a late fee of Rs 50 per day of default. For Nil return there is no provision of late fee. The maximum can be upto INR 10000.


Q- How is GSTR 6 and GSTR 6A is related to each other?

If the taxpayer finds any mistakes in GSTR 6A which is a read only document , he or she can make the same changes in GSTR 6. This will make the amendments that are required in the returns.


Q- Can you file your GSTR 6 if your counter parties have not filed Form GSTR-1/5?

Yes, you can file your Form GSTR-6 even if your counterparties have not filed their Form GSTR-1 or Form GSTR-5. You can do this by uploading the missing invoices using the “ADD MISSING INVOICE” functionality and filing the return within the prescribed time period.


CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.