How to File GSTR 6: A Step-by-step Guide

As per certain commercial structures, the office of a business can remain responsible to receive the tax invoices against the services availed by its different branches. Therefore, this business owner will need to distribute the input tax credit or ITC received to all of its branches as mentioned above.

Please note that ISD taxpayers are legally obligated to file a monthly GST return. So, it is beneficial to know GSTR 6 meaning in this regard.

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What Is GSTR 6?

GSTR 6 is a return that you have to file every month, declaring the crucial details of the input tax credit that your business has received in a month. Additionally, in this form containing eleven different sections, you must also provide all the minute information about how this accumulated credit has been distributed among the different branches of your primary corporation.

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What Is the Eligibility for Filing GSTR 6?

In order to file a GSTR 6 return, you must meet certain eligibility parameters in the first place. These include the following:

You must have an eligible GSTIN code.
The overall revenue of your enterprise has to be above the threshold of ₹20 lakhs.
As an ISD taxpayer, you will need to have a valid Unique Identification Number or UIN.
You must have an active Digital Signature Certificate [DSC].

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How to File GSTR 6 Online?

You can file your GSTR 6 return online without any hassle just by adhering to a few simple steps. The procedure to do so has been detailed below:

Step 1: Navigate to the official website of Goods and Services Tax to access its portal.

Step 2: Log in to the portal using your registered username and password.

Step 3: Click on the option of ‘Return Dashboard.’

Step 4: Select the month and year when you are filing this return.

Step 5: Click on ‘Search.’

Step 6: From the dialogue box shown on your screen, choose the option of ‘Return for input service distributor GSTR6 and select ‘Prepare Online.’

Step 7: Fill out the consent form as required.

Step 8: Input all the adequate details as per the different requirements as stated in the form.

Step 9: Attach the required documents to substantiate the pieces of information you have provided in this form.

Step 10: Ensure there are no mistakes in the data entered from your end, as it can become complicated if you file the return with erroneous details.

Step 11: Make sure that the status of your return has changed to ‘Filed’ in the return dashboard.

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Documents Required for Filing GSTR 6

The GSTR details that you need to provide during your return filing include the following:

The fifteen-digit Goods and Services Tax Identification Number is assigned to you as per the GST registration.
Name of the taxpayer in question.
The date when this return is being filed.
Itemised information regarding all the inputs which your company has received and distributed as tax credit.
The whole amount of input tax credit that you have received as an ISD taxpayer. Note that this amount has to be classified as total, eligible, and ineligible ITC.
Crucial details about your Input Service Distributor report.
Rectified data regarding any erroneous information present in previous returns, if necessary.
Modification or reclamation appeals regarding input tax credit, if necessary.
Details about any adjustments made regarding the amount disbursed to the dealers.
Records about whether any wrong recipient had mistakenly received an ITC distribution.
Details related to a late fee, if required.
A claim of refund from the electronic cash ledger, if applicable.

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What Is the Due Date for Filing GSTR 6?

The due date for filing GSTR 6 is the 13th of the following month in a tax period. Here is a schedule of some of the upcoming due dates.

Month	Due Date
February 2023	13th March 2023
March 2023	13th April 2023
April 2023	13th May 2023
May 2023	13th June 2023

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Rules and Guidelines Regarding GSTR 6

When filing a GSTR 6 return form, it is ideal to keep certain regulations in mind:

You must not have opted for a composition scheme as per the Goods and Services Tax guidelines to submit this form.
Non-resident taxpayers do not come under the purview of this form.
All of the purchases that you have made as a representative of your other businesses and subsidiaries must have been thoroughly documented.
Internal transaction details regarding ITC distribution among branches have to be adequately kept before filing this return.

What Are the Charges for Filing GSTR 6?

You will be charged with a fine of ₹50 for each day from the deadline till you make the actual submission. This amount is a sum total of:

₹25 for State Goods and Services Tax.
₹25 for Central Goods and Services Tax.

Additionally, if there is any tax liability, you will have to pay another ₹20, which is a sum total of:

₹10 CGST
₹10 SGST

However, the highest amount chargeable as a penalty had been limited to ₹10000/return.

What Are the Benefits of GSTR 6?

Some quintessential benefits of GSTR 6 have been listed below:

GST return filing allows the government authorities to keep a regulatory check on the business proceedings of input service distributors.
This filing allows you to safeguard your business from the cascading effects of taxation.
Due to the complete digital procedure, it remains comparatively easier for you to remain compliant with the regulations as put forth by the Income Tax Act of India.
The centralised taxation-related documentation procedure under Goods and Services Tax allows a significant reduction in the transaction costs that you would otherwise have to bear. Therefore, your organisation can have an additional edge in the competitive free and open market.

What Are the Penalty Charges of GSTR 6?

According to the GST rules, a delay in the payment of GST results in 18% to the annual interest rate. For every day since the due date of payment, a late fee will be charged from the taxpayer. Here is an example to give you a clearer idea.

If your tax liability is about ₹1000, then you have to pay both your original GST and an additional 18% interest. This means the daily late fee will be the following:

1000*18/100*1/365= ₹4.93

What Are the Consequences for Not Filing GSTR 6?

Failing to file a GST form within the deadline is mandatory for taxpayers. Otherwise, a lump sum penalty can be levied on you for such delinquencies. Additionally, if you fail to submit the form on time for consecutive six months, you can face an additional risk of your GST registration getting potentially cancelled.

Therefore, it is absolutely necessary for you as a businessman to know the meaning of GSTR 6 and how you can file it on time. This way, you can rest assured that no additional amount is spent on penalty charges. As a result, your business does not have to face any additional expenses.

FAQs About GSTR 6

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What is an electronic ledger under GST?

As per the regulations of the GST Act, an electronic ledger functions as a digital passbook that contains details such as:

GST amount deposited in cash
Input Tax Credit Balance
GST liability and balance liability setoff procedure, if applicable

Can you revise your GSTR 6 form after submission?

Please note that you cannot make any edits to your GSTR 6 return once you have submitted it. Therefore, you need to carefully go through all the details before filing this form. However, you can appeal for any wrong details to be corrected when filing the return for the subsequent month.

Which sections of this GSTR 6 form consist of auto-populated invoices?

Auto-populated invoices are shown in these tables of the GSTR 6 forms:

How to File GSTR 6: A Step-by-step Guide

What Is GSTR 6?

What Is the Eligibility for Filing GSTR 6?

How to File GSTR 6 Online?

Documents Required for Filing GSTR 6

What Is the Due Date for Filing GSTR 6?

Rules and Guidelines Regarding GSTR 6

What Are the Charges for Filing GSTR 6?

What Are the Benefits of GSTR 6?

What Are the Penalty Charges of GSTR 6?

What Are the Consequences for Not Filing GSTR 6?

FAQs About GSTR 6

What is an electronic ledger under GST?

Can you revise your GSTR 6 form after submission?

Which sections of this GSTR 6 form consist of auto-populated invoices?

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