How to File GST Returns for Input Service Distributors?

Posted In | Finance | Accounting Software | India Accounting Tax

The Goods and Services Tax (GST) regime in India has transformed the tax structure and the way businesses operate. One of the important aspects of GST is the Input Service Distributor (ISD). It is a business entity that receives invoices for services used by its branches. It distributes the tax paid, to such branches on a proportional basis by issuing an Input Service Distributor invoice. The branches can claim Input Tax Credit (ITC) on the tax paid. In this article, we will provide a step-by-step guide on how to file GST returns for Input Service Distributors.
 

Who is an Input Service Distributor (ISD)?

An Input Service Distributor (ISD) can be a head office, registered office, or any other office of a business that receives tax invoices for input services used by its branches. The ISD distributes the credit of GST paid on these services to the branches where the services are actually consumed.
 

What is GSTR-6?

GSTR-6 is a monthly return that has to be filed by an Input Service Distributor. It contains the details of ITC received by an ISD and the distribution of ITC.
 

Steps to File GSTR-6
 

Step 1: Login to the GST Portal

To begin the process, you need to login to the GST Portal. Enter your username, password, and captcha code to login.
 

Step 2: Navigate to GSTR-6

Once you are logged in, go to 'Services', then 'Returns', and then 'Returns Dashboard'. Here, you can select the financial year and the return filing period for which you want to file GSTR-6.
 

Step 3: Fill in the Details

Next, you need to provide the details of ITC received and distributed during the month in the respective tables. You also need to provide the details of all the invoices on which credit has been received.
 

Step 4: Preview and Submit

Before submitting the form, you can preview the form to make sure all the details are accurate. If everything is in order, you can submit the form.
 

Step 5: Payment of Tax

If there is any additional tax to be paid, it can be paid online using net banking, credit/debit card, NEFT or RTGS.
 

Step 6: File GSTR-6

After the payment of tax, you can file GSTR-6. You need to verify it using a digital signature certificate (DSC) or Aadhaar-based OTP.
 

It is important to file GSTR-6 on time to avoid any late fee or penalty. If you have any difficulty in filing the return, it is advisable to take help from a GST expert or a tax consultant.