GSTR-6 Return : Your Complete Guide to Filing the Monthly Return for Input Service Distributors

Navigating the complexities of Goods and Services Tax (GST) often involves understanding the roles and responsibilities of different types of entities within the tax structure. One such crucial entity is the Input Service Distributor (ISD), and for them, GSTR-6 Return is the designated monthly return. This comprehensive article will delve into all aspects of GSTR-6 Return, explaining its purpose, who is required to file it, the applicable due dates, the step-by-step online filing process, and the consequences of delayed filing. We will also incorporate relevant examples to clarify the concepts.  

What is GSTR-6?

GSTR-6 is a monthly return that must be filed by every registered Input Service Distributor (ISD). An ISD is essentially an office of a business that receives tax invoices for input services and distributes the credit of Goods and Services Tax (GST) paid on these services to its branches or units that have the same Permanent Account Number (PAN). The purpose of GSTR-6 is to provide details of the input tax credit received by the ISD and how it has been distributed to its various recipient units.  

Who Should File GSTR-6?

Any entity registered as an Input Service Distributor (ISD) under GST is required to file GSTR-6. This typically includes the head office or a central processing unit of a business that receives invoices for services used by its various branches or units and then distributes the GST credit to those units.  

Example:

“TechCorp Ltd.” has its registered head office in Delhi and three manufacturing units in different states (Haryana, Rajasthan, and Uttar Pradesh), all under the same PAN. The head office receives invoices for various input services like accounting, marketing, and IT support, which are utilized by all the manufacturing units. TechCorp Ltd.’s head office is registered as an ISD and is therefore required to file GSTR-6 every month to distribute the input tax credit to its manufacturing units.  

Due Dates for Filing GSTR-6

The due date for filing the GSTR-6 return is the 13th day of the month following the tax period (the month for which the return is being filed).  

• For example, the GSTR-6 for the month of April 2025 is due on May 13, 2025.

It is crucial for ISDs to file their GSTR-6 within this timeframe to ensure timely credit flow to their recipient units.

How to File GSTR-6 Online: Step-by-Step Guide

GSTR-6 must be filed electronically through the GST portal. Here’s a detailed guide to the online filing process:  

1. Access the GST Portal: Navigate to the official GST portal: www.gst.gov.in.
2. Login: Enter your valid username and password to log in to your GST account as an ISD.
3. Go to Returns Dashboard: Once logged in, go to Services > Returns > Returns Dashboard.  
4. Select Financial Year and Return Filing Period: Choose the relevant Financial Year from the dropdown menu and select the specific month for which you are filing the return. Click Search.
5. Click on Prepare Online: Under the GSTR-6 section, click on the Prepare Online button.
6. Fill in the Required Details: You will be directed to the online form where you need to provide information in the following sections:
   • Details of input tax credit received: This section requires the ISD to provide details of all invoices received for input services on which GST has been paid. This includes the supplier’s GSTIN, invoice number, invoice date, and the amount of input tax credit (IGST, CGST, SGST/UTGST).
     • Example: TechCorp Ltd.’s head office received an invoice for accounting services worth ₹50,000 + ₹9,000 (CGST) + ₹9,000 (SGST) in April 2025. These details will be entered in this section.

• Details of credit distributed: In this section, the ISD needs to specify how the input tax credit has been distributed to its various recipient units (branches or other units with the same PAN). This includes the recipient’s GSTIN, the amount of credit distributed (IGST, CGST, SGST/UTGST), and the corresponding invoice details.
  • Example: TechCorp Ltd.’s head office decides to distribute ₹3,000 each of CGST and SGST credit to its Haryana unit. This distribution detail will be recorded in this section, along with the ISD invoice number and date.
• Details of documents issued: This section requires the ISD to provide details of the ISD invoices issued for the purpose of distributing the credit.  

1. Review the Information: Carefully review all the entered details for accuracy before proceeding.
2. File the Return: Once you are satisfied, click on the File Return button.
3. Submit with DSC or EVC: You can file your GSTR-6 using either a Digital Signature Certificate (DSC) or by using Electronic Verification Code (EVC) generated through OTP on your registered mobile number and email ID.  

Details to be Furnished in GSTR-6

The GSTR-6 form requires an ISD to furnish the following key information:

• Details of Invoices Received for Input Services: This includes supplier GSTIN, invoice number, invoice date, taxable value, and the amount of IGST, CGST, and SGST/UTGST.  
• Details of Credit Distributed to Recipients: This includes the recipient’s GSTIN, the amount of IGST, CGST, and SGST/UTGST credit distributed, and the ISD invoice number and date against which the credit is being distributed. The credit distribution should be in the same proportion as the turnover of the recipient unit in the relevant period.
• Details of ISD Invoices Issued: This includes the serial numbers and dates of the invoices issued by the ISD for distributing the input tax credit.
• Debit Notes/Credit Notes (if any): Details of any debit notes or credit notes issued by the ISD.

Late Filing Penalty for GSTR-6

Failure to file the GSTR-6 return within the stipulated due date attracts penalties under the GST law. As per the current GST regulations, the penalty for late filing of GSTR-6 is ₹100 per day under CGST and ₹100 per day under SGST/UTGST, for each day of delay. The total penalty can go up to a maximum of ₹5,000 under CGST and ₹5,000 under SGST/UTGST, totaling ₹10,000.  

Importance of Filing GSTR-6 Correctly and on Time

Timely and accurate filing of GSTR-6 is crucial for ISDs for the following reasons:

• Facilitating Smooth Flow of Input Tax Credit: It ensures that the recipient units receive the input tax credit they are entitled to, which helps in reducing their overall tax liability.  
• Compliance with GST Laws: It ensures adherence to the GST regulations in India, which is mandatory for registered ISDs.  
• Avoidance of Penalties: Filing before the due date helps in avoiding late filing penalties.  
• Maintaining Transparency: It provides a clear record of the input tax credit received and distributed by the ISD.

Key Takeaways

• GSTR-6 is a monthly GST return for registered Input Service Distributors (ISDs).  
• The due date for filing GSTR-6 is the 13th of the month following the tax period.  
• The return must be filed online through the GST portal.  
• It captures details of input tax credit received by the ISD and how it is distributed to recipient units.  
• Late filing attracts penalties.  
• Accurate and timely filing is essential for ensuring the smooth flow of ITC to the recipient units.  

Understanding the specific requirements and procedures for filing GSTR-6 Return is vital for businesses operating as Input Service Distributors. By adhering to the regulations and ensuring timely and accurate filing, they can facilitate the efficient distribution of input tax credit to their various units, contributing to overall GST compliance and reducing the tax burden on the entire organization. Always refer to the latest updates and notifications from the GST department for any changes in the rules and regulations.