What Is GSTR-6?

Understanding GSTR-6 for GST Filing

GSTR-6 is a monthly return that must be filed by Input Service Distributors (ISDs) under the Goods and Services Tax (GST) regime in India. 

Key Features of GSTR-6:

1. For Input Service Distributors (ISDs):

GSTR-6 is specifically for ISDs, which are entities that receive invoices for input services and distribute the input tax credit (ITC) to their respective units or branches.

2. Monthly Filing:

ISDs are required to file GSTR-6 on a monthly basis.

The due date for filing GSTR-6 is typically the 13th of the following month.

3. Summary Return:

GSTR-6 is a summary return where ISDs report their summarized details of input services received, ITC distributed, and any amendments made during the month.

4. Details of Input Services Received:

ISDs declare details of input services received from various suppliers, including the GSTIN of the supplier, invoice details, and the amount of input tax credit availed.

5. Distribution of ITC:

ISD distributes the input tax credit availed on input services to their respective units or branches based on the proportion of their turnover in the total turnover of all units.

6. Amendments and Reversals:

ISDs can make amendments to previously filed GSTR-6 returns and reverse any wrongly distributed input tax credit, if required.

7. Verification and Declaration:

ISDs verify the correctness of the details provided in GSTR-6 and make a declaration regarding the accuracy of the information furnished.

 Key Sections in GSTR-6:

Part A: Basic details such as GSTIN, legal name, and trade name (if any) of the ISD.

Part B: Details of input services received, including invoices, credit notes, and debit notes.

Part C: Details of input tax credit distributed to units or branches of the ISD.

Part D: Amendments to previously filed returns, if any.

Part E: Verification and declaration by the ISD regarding the correctness of the information provided.

 Benefits of GSTR-6:

Facilitates Input Tax Credit (ITC) Distribution: Allows ISDs to distribute input tax credits availed on input services to their respective units or branches.

Ensures Compliance: Helps ISDs comply with GST regulations by accurately reporting input services received and ITC distributed.

Transparency and Accountability: Promotes transparency and accountability in the distribution of input tax credit within an organization.