Introduction

GSTR 6 is a crucial monthly GST return that must be filed by Input Service Distributors (ISDs). This return provides details on the input service invoices for which credit has been received and needs to be allocated. A thorough understanding of GSTR 6 is vital for ISDs to ensure compliance and effectively manage their input tax credit processes.

Recent Changes

As of June 7th, 2025, significant modifications were introduced affecting GSTR filings. GSTN has established a rule that prohibits taxpayers from submitting their GSTR-3B returns three years after the original due date. This regulation will take effect from the tax period of July 2025. Moreover, as per Notification No. 16/2024-Central Tax, the ISD mechanism became mandatory on April 1st, 2025, following amendments to the CGST Act. Changes in Rule 39 regarding ITC distribution by ISDs, as outlined in Notification No. 12/2024-Central Tax, are also forthcoming.

What is GSTR 6?

GSTR 6 is a specialized monthly return that Input Service Distributors are required to file, detailing the input tax credit (ITC) received and its distribution. The return consists of 11 sections, each addressing different aspects of ITC management and allocation.

Significance of GSTR 6

Every ISD is obligated to file GSTR 6, as it contains critical information regarding the documents that facilitate ITC distribution. This includes the methods of credit allocation and tax invoices associated with the received credits. Notably, even in the absence of transactions, ISDs must still submit a nil return.

Filing Deadlines

Under GST regulations, the deadline for submitting GSTR 6 is the 13th of the month following the relevant tax period. Adhering to this timeline is essential for ISDs to avoid penalties. Late fees are set at ₹50 per day, with no exemptions for nil returns.

Who Must File GSTR 6?

All Input Service Distributors are required to file GSTR 6 on time, regardless of the volume of transactions during the tax period.

Revising GSTR 6 Returns

It is crucial to understand that the GST framework does not permit the revision of GSTR 6 once submitted. In cases of errors, corrections can only be made in the GSTR 6 filing for the following month.

Understanding GSTR 6A

GSTR 6A is an auto-generated document based on the details provided by suppliers in their GSTR 1 submissions. This form is read-only, meaning that any necessary adjustments must be made during GSTR 6 filing. For more information on GSTR 1, refer to our detailed guide on GST return submission.

Key Information to Include in GSTR 6

When filing GSTR 6, ISDs must ensure the following information is accurately reported:

1. GSTIN: The GSTIN of the dealer for whom the return is being filed.
2. Registered Person's Name: This will auto-populate based on the provided GSTIN.
3. Input Tax Credit for Distribution: Invoice-wise details of ITC received for distribution will auto-populate.
4. Total ITC Breakdown: Total ITC, eligible ITC, and ineligible ITC must be clearly detailed.
5. ITC Distribution Report: This section outlines the complete distribution of ITC by the ISD.
6. Correction of Previous Returns: Amendments to earlier returns can be recorded here.
7. ITC Mismatches and Reclaims: Any adjustments related to mismatches or reclaims are to be noted.
8. Credit Distribution Changes: Any adjustments to previously distributed ITC must be documented.
9. Redistribution Corrections: Incorrectly distributed ITC can be rectified in this section.
10. Late Fees: Any late fees incurred need to be reported.
11. Refund Claims from Electronic Ledger: Details regarding refunds claimed from the electronic cash ledger must be included.

Conclusion

In summary, GSTR 6 is an essential compliance tool for Input Service Distributors, ensuring they accurately manage and report their input tax credits. By staying updated on filing requirements, deadlines, and recent changes, ISDs can significantly enhance their GST compliance strategies. For further assistance regarding legal compliance, consider exploring our AI-powered legal services.