How and When to File GSTR 6?

Posted In | Finance | Accounting Software | Gridlex Academy | India Accounting Tax

What is GSTR 6? 

GSTR-6 is a return that needs to be filed by input service distributors (ISDs) who are registered under the Goods and Services Tax (GST) in India. An ISD is a person who receives invoices for the input services they have availed and then distributes the credit to the recipients of those services.

 

 

How to File GSTR 6? 

Here's a step-by-step guide on how to file GSTR-6:

1. Login to the GST portal using your GSTIN and password.
2. Click on the "Returns" tab and then select "GSTR-6" from the drop-down menu.
3. Select the relevant tax period for which you need to file the return.
4. Enter the details of the invoices for the input services you have received in the "Inward Supplies from ISD" section.
5. Enter the details of the credit that you have distributed to the recipients of the input services in the "Distribution of Credit" section.
6. Verify the details entered in the return and click on the "Submit" button.
7. Download the acknowledgment receipt for the return filed.

 

When to File GSTR-6?

GSTR-6 is required to be filed on a monthly basis, within 13 days after the end of the tax period. For example, if the tax period is January 2021, the return must be filed on or before 13th February 2021.

 

 It is important for ISDs to file their GSTR-6 returns on time to avoid any consequences such as late fees, disallowance of input tax credit, and penalties. If you are unable to file your return on time, you can request an extension from the tax authorities by providing a valid reason for the delay.

 

In summary, GSTR-6 is a return that needs to be filed by ISDs on a monthly basis to declare the details of the input services they have received and the credit they have distributed to the recipients. It is important to file the return on time to avoid any consequences.

 

Frequently Asked Questions: 

1. What is GSTR-6A?

GSTR-6A is an auto-generated return that is generated on the Goods and Services Tax (GST) portal. It contains the details of the inward supplies made to an input service distributor (ISD) by their suppliers.

 

2. Is it mandatory to file nil GSTR-6?

As an Input Service Distributor (ISD), it is mandatory for you to file the GSTR-6 return on a monthly basis, even if you do not have any transactions to report for a particular month. If you do not have any transactions to report, you can file a nil return for that month. To file a nil GSTR-6 return, you need to follow the same process as for filing a regular GSTR-6 return.

 

3. Who needs GSTR 6?

The GSTR-6 return is specifically for registered Input Service Distributors (ISDs) under the Indian GST (Goods and Services Tax) system. An ISD is a person who is registered under GST and distributes input tax credit (ITC) to the recipients of the taxable goods or services provided by them.