GSTR-6 Return Filing, Rules & Eligibility

Prakash Matre
Prakash Matre at March 22, 2023

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What is GSTR-6?

GSTR-6 is a monthly return to be filed by all the Input Service Distributor’s (ISD) for distribution of credit (ITC) amongst its units.

Who needs to file GSTR-6 and is it mandatory to file it?

Only those taxpayers who are registered as Input Service Distributor (ISD) need to file GSTR 6. It is a mandatory return, to be filed monthly. A Nil return must be filed in case of no business activity.

By when do I need to file the GSTR-6?

ISD Returns for month M can only be filed on or after the 11th of month M+1 and on or before the 13th of month M+1. This is subject to changes in ISD return due date done by Government if any. CBEC Vide Notification No. 62/2017 – Central Tax; dated 15/11/2017 has extended the time limit for furnishing the return in FORM GSTR-6 for the month of July, 2017 till the 31st day of December, 2017.

From where can I file GSTR-6?

GSTR6 can be accessed on the GST Portal, post login in the Returns Dashboard by the taxpayer.

The path is Services > Returns > Returns Dashboard.

Is it mandatory to take action on all invoices auto populated in GSTR-6?

Yes, it is mandatory to take action against all invoices auto populated in your GSTR-6, failing which you will be unable to file GSTR-6.

What actions can I take on invoice data auto populated in GSTR-6?

For invoice data received in GSTR-6, you can take following actions (identical to that of GSTR-2):

  1. Accept
  2. Reject
  3. Modify
  4. Keep Pending
  5. Add Missing Invoice

Can I file my ISD return if my counterparties have not filed GSTR-1/GSTR-5?

Yes, you can file your GSTR 6 return even if your counterparties have not filed their respective GSTR-1 and GSTR-5. You can do this by uploading the missing invoices using the ADD MISSING INVOICE functionality and filing the return within the prescribed timeline.

What happens if GSTR 6 is filed before GSTR-1 and then GSTR-1 and GSTR-5 are filed?

In case GSTR-1 and GSTR-5 are not submitted by the counterparties till 10th of the month succeeding the tax period, there will be no auto-population of B2B details in GSTR-6A and GSTR-6 for that tax period. In such an event, ISD has to add missing invoices using the ADD MISSING INVOICE functionality. He can use B2B details uploaded by supplier (if any), that were visible to ISD on near real time basis to prepare its GSTR-6.

 Also, these uploaded B2B details will flow directly to the GSTR-1/GSTR-5 of the suppliers.

Is there any Offline Tool for GSTR-6?

No, there is no offline tool for GSTR-6.

Is there an Electronic Credit Ledger available for ISD Registrations?

No, there is no Electronic Credit Ledger maintained for ISD Registrations. However, there is an ISD Ledger maintained to keep a record of all transactions.

When and where are the auto populated invoices reflected in the GSTR 6?

The auto populated invoices can be viewed in GSTR-6A (Table 3 and 4) and GSTR 6 (Tables 3, 6A, 6B, and 6C) simultaneously once GSTR-1/GSTR-5 is successfully saved by the supplier taxpayer. Action can be taken on the invoices if the GSTR 1 have been submitted by the supplier taxpayer.

Am I supposed the mark the eligibility of ITC at an invoice-level?

Yes, similar to GSTR-2, you are expected to mark ITC eligibility at an invoice-level.

As an ISD, am I liable to pay tax on a reverse charge basis? OR Is reverse charge applicable to ISDs?

Reverse charge liability is not applicable for an ISD taxpayer. It shows GSTR 6 applicability.

How do I allocate credit to my other units in the GSTR 6?

Using Table 5 and Table 8 of the GSTR-6, both eligible and ineligible ITC can be distributed to the other units.

Can I reverse the credit allocated to the units in GSTR 6 of earlier tax periods? If yes, how?

Yes, you can redistribute the credit allocated to a unit in a previous tax period using Table 9 of the GSTR-6.

What are the pre-conditions for filing GSTR-6?

Pre-conditions for filing of GSTR-6 are:

  • The receiver taxpayer should be a Registered ISD and should have an active GSTIN.
  • Receiver taxpayer should have valid login credentials (i.e., User ID and password).
  • Receiver taxpayer should have valid and non-expired/ unrevoked Digital Signature Certificate (DSC which is mandatory for companies, LLPs and FLLPs).
  • Receiver taxpayer should have a valid Aadhaar number with mobile number, in case they want to use the E-Sign option.
  • A receiver taxpayer should have with him an active mobile number which is indicated in his registration details furnished to GST Portal at the time of enrolment/ registration or amendment to registration details for signing through EVC.
  • A receiver taxpayer will have an option to file Form GSTR-6 for cancelled GSTINs for the period in which it was active.
  • Due date for filing of Form GSTR-1 and GSTR 5 of the same tax period should have lapsed.

What happens after Form GSTR-2 is filed?

After Form GSTR-6 is filed:

  • ARN is generated on successful submission of the Form GSTR-6 Return.
  • An SMS and an email are sent to the taxpayer on his registered mobile and email id
  • on successful submission of Form GSTR-6.
  • Once the Form is submitted after affixing DSC or E-sign or EVC as the case may be,
  • the Form is passed on to:
  1. The CBEC (Central Board of Excise and Customs – the central tax authority)
  2. Tax authority of jurisdictional State or UT
  • In case of modifications or additions in Form GSTR-6, such details are auto-populated
  • in Form GSTR-1/1A/5 of counterparty supplier taxpayers.
  • ISD Ledger is updated.

What are the modes of signing GSTR-6?

You can file GSTR-2 using Digital Signature Certificate (DSC), Electronic Signature (E-Sign) or Electronic Verification Code (EVC).

Can I preview the Form GSTR-6 before submitting?

Yes, you can preview the Form GSTR-6 before submitting on the GST Portal.

What information can be modified and cannot be modified by a taxpayer in an invoice in GSTR-6?

A taxpayer can modify the invoice value and tax values in an invoice in GSTR-6.

Invoice Number cannot be modified by the taxpayer in an invoice in GSTR-6.

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