GSTR 6 – Furnishing Of Return By Input Service Distributors (ISD) –GST SERIES – PART 29

1. GSTR 6 is a monthly return for Input Service Distributors (ISD) to provide the details of their inward supplies & distributed Input Tax Credit (ITC).

2. Input Service Distributor (ISD):- Input Service Distributor is an office of a business that receives tax invoices for input services of the taxable purchases on behalf of other establishments/branches and distribute the Input Tax Credit (ITC) on such purchases to the concerned establishment / Branches.

2.1.  Statutory Definition  :

Section 2(61) Input Service Distributor means :

a) It is the office of supplier (Head office of the organization) of goods and / or services

b) The said office receives tax invoices towards receipt of input services

c) The said office distributes credit of CGST/SGST/IGST/UTGST to (Branch offices) a supplier of goods/services having the same PAN

d) The said office (Head office) issues tax invoice or other prescribed documents for distribution of credit.

3. Furnishing the Return: The Input Tax Distributor (ISD/ Head office) is required to capture the details of all such taxable purchases on behalf of other establishments/branches. The ISD is also required to capture the details of the manner of ITC (Input Tax Credit) distribution on purchases across branches in GSTR 6

4. GSTR 6: This return must contain the details of inward supplies received/purchases made from other registered taxpayers (B2B) and the details of input tax credit that is distributed among the branches of the organization.

4.1. Statutory Provisions:

Section 39(4) Every taxable person registered as an Input Service Distributor shall, for every calendar month furnish a return, electronically, within thirteen days after the end of such month.
Rule 65 Every Input Service Distributor shall, on the basis of details contained in FORM GSTR-6A and where required, after adding, correcting, or deleting the details, furnish electronically the return in FORM GSTR 6.

FORM GSTR 6 contains the details of tax invoices on which credit has been received and those issued under Section 20, through the common portal.

Section 20 of the CGST Act prescribes the manner of issuing invoices for distribution of credit by the ISD

5. GSTR 6A GSTR 6A is an automatically generated form based on the details provided by the suppliers of an Input Service Distributor in their GSTR 1. GSTR 6A is a read-only Form and need not be filed.

6. Step by Step Procedure to file GSTR 6

Step 1: Login to GST Portal

Step 2 Click on ‘RETURN DASHBOARD

Step 3   Select the month and year of filing form the drop-down and click on ‘SEARCH.  Following tiles will be displayed on the screen:-

Return for Input Service Distributor

GSTR 6

Due date: 13/09/2020

Prepare Online
Details of Auto Drafted Supplies

GSTR 6A

Prepare Online

Step 4: Click on PREPARE ONLINE on the tile indicating “Return for input service distributor GSTR6”.The following tiles will be displayed.

GSTR 6: Invoice Details

6B. Debit Notes/ Credit Notes Received
3. Input Tax Credit received for distribution

GSTR 6: ITC Distribution :

5B. Distribution of Input Tax Credit ( ISD invoices & ISD credit Notes)
4.  Total ITC available and Eligible, ITC Ineligible /ITC distributed

GSTR 6 Other Details

10.  Late Fee
Generate GSTR 6  Summary

Step 5:   Scroll down to the bottom of the page. Click on ‘Generate GSTR6 Summary”. By clicking on “Generate GSTR 6 Summary “the details of GSTR 6A will be auto-populated in GSTR-06.

Step 6:  Click on Tile 3Input Tax Credit received for distribution. A list of GSTIN of vendors from whom purchases have been made by the ISD will display as tabulated below:-

GSTN of supplier Invoice details Rate Taxable Value Amount of Tax
No. Date Value IGST CGST SGST CESS
1 2 3 4 5 6 7 8 9 10

Step 6.1  Click on the GSTIN of each vendor & verify the invoice details. The ISD can accept, modify, reject, keep pending or even add the missing invoices at this step. These actions can be taken and changed any number of times before filing the return. The same action can be initiate by clicking Table 6B which contains the details of all the Debit and Credit Notes filed by the vendor (supplier).

Step 7: –  Click on  Tile  4 Total ITC available and Eligible ITC/Ineligible  ITC distributed. Following details will be displayed

Description IGST CGST SGST CESS
(a) Total ITC available for distribution
(b) Amount of eligible ITC
(c) Amount of ineligible ITC

 –

Calculate ITC Back

Step 7.1   Click on Calculate ITC. The total ITC, eligible ITC and Ineligible ITC will be displayed in Table 4 of GSTR 6.

Step 8: Click on Tile 5 – “Distribution of Input Tax Credit  of ISD Invoices & Credit Notes“. Now click on Add documents. Enter the following details and Save:- 

a. Eligibility of ITC: Whether the ITC being distributed is eligible or ineligible for credit

b. Unit Type: Registered or unregistered unit

c. GSTIN of the Registered recipient

d. ISD Document Type: Invoice or Credit Note

e. Invoice Number, Date of Invoice, Credit Note Number and Date (if applicable)

f. Tax amount

Details will be displayed in Table 5 as tabulated below:-

GSTIN of the recipient (State if the recipient is unregistered) ISD Invoice Distribution of ITC by ISD
No. Date IGST CGST SGST CESS
5A.  Distribution of the amount of eligible ITC
5B.  Distribution of the amount of ineligible ITC

Step 9   Preview & Submit the Return

7. The status of gets changed to ‘Filed ‘ on Return Dashboard after the return is filed.

8. Amendments in the information furnished in earlier returns– If there is any mistake in the invoice details for inward supplies provided in the previous returns it can be corrected in Table 6. The details of changes to be made to invoices have to be entered here.

Original Details Revised Details
GSTIN of the Sup plier Invo ice No. In voice Date GSTIN of the Sup plier Invoice / Debit Note/ Credit Note Details Ra te Tax able Value Amount of Tax
No. Date Value IGST CGST SGST CESS
1 2 3 4 5 6 7 8 9 10 11 12 13
 6A. Incorrect Information furnished in table 3 in the earlier period
 6B  Debit Credit Notes Received ( Original)
 6C  Debit Notes / Credit Note ( Amendments

8.1.Input Tax Credit (ITC) miss-matches and reclaims to be distributed in the tax period – Changes to the total ITC on account of mismatch or ITC reclaimed on rectification of mismatch can be done in Table  7 :

Description IGST CGST SGST CESS
7A Input Tax Credit Mismatch
7B Input Tax Credit reclaimed on rectification on Mismatch

8.2  Distribution of Input Tax Credit (ITC) reported in Table No. 6 and 7 (plus/minus) – Changes to be made to the amount of credit distributed to dealers on account of details entered in Table 6 or 7 can be done in Table 8

GSTIN of the recipient ISD credit No. ISD Invoice Input Tax Distribution by ISD
No. Date No. Date IGST CGST SGST CESS
8A  Distribution of amount of eligible ITC
8B Distribution of amount of ineligible ITC

8.3  Redistribution of ITC distributed to a wrong recipient (plus/minus) – Any incorrect distribution of ITC to the dealers in the previous returns can be entered in Table 9

Original ITC distribution Redistribution of ITC to the correct recipient
GSTIN of the Supplier ISD Invoice Details ISD Credit Note GSTIN of the Supplier ISD Invoice Input Tax Credit redistributed
No. Date No. Date No. Date IGST CGST SGST CESS
1 2 3 4 5 6 7 8 9 10 11 12
 9A  Distribution of the amount of eligible ITC
9B   Distribution of amount of ineligible ITC

9. Late Fees(if any) that is paid by the dealer has to be entered in this section.

On account of Central Tax State / UT Tax Debit Entry No.
1 2 3 4
Late Fee

10. Refund claimed from electronic cash ledger – This will include details of refunds to be claimed from the Electronic Cash Ledger.

Description Fee other Debit Entry No.
1 2 3 4
(a) Central Tax
(b) State /UT Tax
Bank  Account Details ( Drop Down)

11. Other Provisions of furnishing GSTR 6

11.1  An Excel-based GSTR 6 offline utility is available for filing GSTR 6

11.2  The due date for filing of GSTR 6 as per the GST Act is the 13th of next month.

11.3 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 Rs. 50 per day of default. However, there is no fee for delay in filing of Nil return.

11.4   There is no provision under GST for revising GSTR 6. Any mistakes made in the return can be corrected while filing GSTR 6 of the following month.

11.6  GSTR 6 has to be filed by every ISD even if it is a NIL  Return.

12. Salient Features of Input Service Distributors :

12.1   An ISD will have to compulsorily take a separate registration. There is no threshold limit for registration for an ISD. ISD and the Branches may have different GSTIN’s, but they must have the same PAN

12.2  ISD Mechanism is meant only for distributing the credit on common invoices pertaining to INPUT SERVICES and not on goods (Input Goods or Capital Goods) Thus. Input goods are not eligible for ISD benefits.

12.3 The input tax credit available for distribution in a month shall be distributed in the same month and details furnished in FORM GSTR-6

12.4 An ISD shall separately distribute both the amount of ineligible and eligible input tax credit.

 12.5  When the ISD and the recipient of credit are in the same state then the Input tax credit shall be distributed as CGST + SGST.

 12.6  When ISD and the recipient of credit are in a different state then the input tax credit shall be distributed as IGST. An ISD may have CGST & SGST that need to be distributed to the recipient (branch) who is in a different state. In that case, the total of CGST & SGST will be distributed to the recipient in different States as IGST.

12.7  Amount of tax credit distributed should not exceed the amount of tax credit available with the ISD as at the end of a relevant month to be filed in GSTR-6 by 13th* of the succeeding month by ISD.

12.8 The credit of tax paid under the reverse charge mechanism is not available for distribution to the recipients. So, the ISD has to utilize such credit only as a normal taxpayer.

13. Cross Charges Vs ISD the case of Cross charge, there is an element of service rendered by the person who crosses charges his other units even though they belong to the same legal entity. On the other hand, in the case of ISD, there is no element of Service at all.

The Author can be approached at caanitabhadra@gmail.com

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2 Comments

  1. Anita Bhadra says:

    Refer Notification No.07/2018 where late fees has been reduced to Rs 50 for normal GSTR 6 . They did’nt mentioned specifically for NIL Return . Obviously , it can not be Rs 100/- .

    Since , nothing has been indicated about prescribed late fee rate for NIL Return whilst reducing rate for normal GSTR 6 , it is interpreted as NIL Rate .
    GST portal has not been updated even to reduce as Rs 50

  2. Puran Singh says:

    Do we have any notification regarding no late fees on nil gstr6 late filing. Because gst portal is charging 100 per day late filing fee on nil returns. There is no clear notification in this regard also

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