The Goods and Services Tax Return-6 is a document/statement filed on a monthly basis by Input Service Distributors.
Input Service Distributor is meant only for distribution of credit on common invoices related to the input of services only and not for goods (inputs or capital goods). The head office may purchase various services on behalf of / commonly for all its branches, (multiple branches if any). In such case, the input tax credit from the purchases made by Head Office need to be distributed among their branches. To avail this, the entity can set up ISD (Input Service Distributor) to distribute the credit of Central tax (CGST), State tax (SGST)/ Union territory tax (UTGST) or Integrated tax (IGST) to respective branches of the same business.
Every taxable person registered as an Input Service Distributor (ISD) is required to furnish details of input credit distributed in form GSTR-6.
The GSTR-6 for a particular month can be filed upon the completion of that month. The last day for filing this return is before the 13th of the following month. (E.g.: If you are filing the GSTR-6 for April 2018 then, it has to be filed before the 13th of May 2018.)
GSTR-6 contain the details of:
Here you can see the complete format of the Form GSTR-6.
Most of the headings under this return are auto-populated from counter-party GST return.
|#||Headings||Details to be furnished|
|1||GSTIN (Goods and Services Taxpayer Identification Number )||15 digit state-wise PAN number which will be auto-populated at the time of filing a return.|
|2||Legal Name of the registered person||Will be auto-populated when a taxpayer will login to the common GST portal|
|3||Tax Period||Period/month or year of tax to which the Return pertains (for which GSTR-6 is being filed); to be selected from drop-down menu|
|4||Input Tax Credit received for Distribution||ISD need to furnish details of supplies received from a registered person and the amount of input credit available for the current tax period.
The entire details of inward supply will be auto-populated from counter-party GSTR-1 and GSTR-5.
Under this heading, the taxpayer needs to enter the amount of credit available for CGST/SGST/IGST as the case may be.
|In case, purchases have been made in more than one lot, the details of the invoice should be reported in the return period in which the last lot has been received and recorded in books of accounts.|
|5||Total ITC/ Eligible ITC/ Ineligible ITC to be distributed for the tax period||Here, the eligible and ineligible credit bifurcation from the total ITC which is available is required to be given CGST/SGST/IGST wise.|
|6||Distribution of ITC from above||The ITC (eligible/ineligible) allocable to the respective recipient shall be shown here, tax-wise separately.|
|7||Amendment to Distribution documents and debit or credit notes of earlier tax periods||Any amendment in any distribution document and debit /credit note about previous months shall be reported under this heading.|
|8||ITC mismatch and reclaims to be distributed in the tax period||Under this heading, Reversal and Reclaim of ITC shall be reported and such reversal or reclaim as the case may be, shall be allocated amongst the recipients tax wise.|
|9||Redistribution of ITC distributed to a wrong recipient||In this field, the details of original distribution document and the details of redistribution documents are required to be specified recipient wise as well as invoice wise.|
|10||Late Fee||Here, the late fee on account of CGST/SGST/IGST is required to be mentioned.|
|11||Refund claimed from Electronic Cash ledger||If any refund is to be claimed from electronic cash ledger, the details of the same are required to be mentioned here along with the bank details specified therein.|
Upon filling up all the sections of the GSTR-6, a taxpayer is required to declare the authenticity of the document and sign it electronically.
GSTR-6 can be filed online on the GST common portal. Following are the steps to file the GSTR-6 return.
Step – 1: Go to the GST common portal and log in to your account by entering your “Username” and “Password”. Click on the “LOGIN” button to proceed.
Step – 2: After entering the log-in credentials, you will see a welcome message as shown below. Click on the button “RETURN DASHBOARD”.
Step – 3: Select the relevant “Financial Year” and “Return Filing Period” (month) for which GSTR-6 is to be filed and click on the “SEARCH” button.
Step – 4: Choose the option which says “Return for input service distributor GSTR6” by clicking on the “PREPARE ONLINE” button. On the right, there is another option which says “Details of auto drafted supplies GSTR6A”. It is auto-generated GSTR-6A which can only be viewed by the user.
Step – 5: After selecting GSTR- 6, a user can see the invoice details and distribution of input tax credit.
Step – 6: Click on the box saying “3 – Input tax credit received for distribution” under the head “Invoice Details”. You will now see a page as displayed below. Click on the “ADD MISSING INVOICE DETAILS BUTTON”.
Step – 7: All the details related to “Supplier’s GSTIN”, “Supplier Name” will appear automatically while “Invoice no.”, “Invoice Date”, “POS”, “Total Invoice Value” and “Supply Type” should be provided by the user.
Step – 8: Now click on the “BACK” button to see the page displayed during “Step – 5”. Select the box titled “6B – Debit Notes/Credit Notes received”. Now click on the “ADD CREDIT NOTE/DEBIT NOTE” button.
Step – 9: Details related to credit note with “Supplier GSTIN”, “Supplier Name”, “Note Type” (debit/credit note) “Note Value”, “Debit/Credit Note No.”, “Debit/Credit Note Date”, “Original Invoice No.”, “Original Invoice Date”, “Supply Type”, “Reason For Issuing Note” should be filled by the user. Click on “SAVE” button. Now you will again land to the menu displayed in “Step – 5”.
Step – 10: Select the box which says “4 – Total ITC available and Eligible ITC/Ineligible ITC distributed”. Provide the details asked in the boxes and click on “CALCULATE ITC” button.
Step – 11: Select “Eligible ITC” tab and you will see the amount which is distributed to the branches and detailed summary of the invoices.
Step – 12: Select the “Ineligible ITC” tab and you will see the amount distributed to the branches which is ineligible with a detailed summary.
Step – 13: In this step, you need to provide ISD details like “Eligibility of ITC”, “Unit type”, “Document type”, “ISD invoice number” and “ISD invoice date”. Once you have filled the boxes, click on the “SAVE” button to proceed.
Step – 14: The form GSTR-6 is auto-populated. Details of Input credit received for distribution and debit credit notes received during current period is reflected in the form.
Step – 15: Now click on the last box which says “10 – Late Fee” under the head “GSTR-6 – Other Details”. After filling up all the details, click on the checkbox under the head “GENERATE GSTR6 SUMMARY” and click on the “SUBMIT” button and then “FILE RETURN” button to complete the return filing process.
Any registered person who fails to furnish GSTR-6 return by due date, the user will be charged with late fee payable of Rs 50/day (CGST – Rs 25/day; SGST – Rs 25/day), In case of any tax liability and Rs 20/day (CGST Rs 10/day and SGST Rs 10/day), In case of nil tax liability, late fees would be charged from the due date to the date when the returns are filed, subject to a maximum of Rs 5,000.
The time limit for furnishing the return by an Input Service Distributor in FORM GSTR- 6 from July 2017 to April 2018 is till 31st May 2018.
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