GSTR 6 Return Guide: Filing Procedure, Format, Eligibility Rules

Ramesh Mehta operates a distribution company in Pune and has registered as an Input Service Distributor (ISD) under the Goods and Services Tax (GST) system. On the tenth of each month, he receives invoices for office rent (₹50,000), professional services (₹25,000), and digital advertising (₹30,000), all of which include input tax under GST.

On the thirteenth, Ramesh accessed the GST portal and filed his GSTR-6 return, distributing ₹18,000 of input tax credit between his two branches located in Mumbai and Nagpur. This allocation allows both branches to proportionately reduce their GST liability.

Failure to file GSTR-6 on time may attract a penalty of ₹50 per day, in addition to interest charges on delayed utilisation of input tax credit.

What is GSTR-6?

GSTR-6 is a monthly return to be filed by Input Service Distributors (ISDs) under the Goods and Services Tax (GST) regime. It reports the details of input tax credit (ITC) received by the ISD and its distribution to different branches or units of the organisation.

This format sees to it that credit for shared services, like consulting, software, or legal expenses, is proportionately and legally distributed to all qualifying units. Proper filing of GSTR-6 helps maintain compliance and supports smooth credit flow across multiple locations of a business.

Example: Suppose a company's head office, registered as an ISD, receives a GST invoice showing an input tax credit of ₹60,000 for IT services. The company has three branches, Delhi, Mumbai, and Chennai, each eligible for an equal share of the service.
 

• Total ITC received: ₹60,000
   
• Number of branches: 3
   
• ITC allocated per branch: ₹60,000 ÷ 3 = ₹20,000

By filing GSTR-6, the ISD formally declares this distribution. Each branch then receives ₹20,000 in its electronic credit ledger, enabling it to utilise the input tax credit for its own GST liabilities.

Who Should File GSTR-6?

Only registered Input Service Distributors (ISDs) under GST need to file GSTR-6. ISD registration is different from normal GST registration and is exclusively for ITC distribution purposes.
 

Example: An IT company headquartered in Bengaluru operates branches in Chennai, Hyderabad, and Kolkata. The head office registers separately as an ISD and files GSTR-6 to distribute ₹75,000 of input GST credit based on departmental usage. 

Chennai receives ₹30,000, Hyderabad gets ₹25,000, and Kolkata receives ₹20,000. Without ISD registration, the credit flow to these branches would not be legally compliant under GST.

Due Date and Penalty for Late Filing

• Due Date: 13th of the month following the tax period (e.g., for May 2025, the due date is 13th June 2025).
   
• Late Fee: ₹50 per day (₹25 CGST + ₹25 SGST)
   
• Maximum Penalty: ₹5,000
   
• Interest on delayed ITC: 18% per annum

Example: Ramesh files his GSTR-6 for May 2025 on 20th June 2025 instead of 13th June, a delay of 7 days.

• Late fee: ₹50 × 7 = ₹350
   
• ITC involved: ₹30,000
   
• Interest: (30,000 × 18% × 7) / 365 = ₹103.84

So, the total liability for late filing would be ₹453.84.

How to File GSTR-6: Step-by-Step Procedure?

You can file GSTR-6 online on the official GST portal at: https://www.gst.gov.in

Steps:

1. Log in to the GST portal
    
2. Navigate to Services > Returns > Returns Dashboard.
    
3. Select the financial year and return month.
    
4. Click on Prepare Online under GSTR-6.
    
5. Enter invoice-wise details of inward supplies.
    
6. Auto-populated data from GSTR-1A will appear.
    
7. Match, add or modify supplier data.
    
8. Distribute ITC using the ISD credit distribution fields.
    
9. Save and preview return.
    
10. Submit using DSC or EVC.

Example: Ramesh’s firm receives 10 invoices for input services in June 2025, with a total input tax credit of ₹1,20,000. Based on departmental usage:

• Mumbai receives 50% = ₹60,000
   
• Nagpur receives 33.33% = ₹40,000
   
• Nashik receives 16.67% = ₹20,000

These allocations are entered in the GSTR-6 form for June and submitted by 13th July 2025 to ensure timely compliance and seamless credit distribution.

Format of GSTR-6 Return

GSTR-6 consists of 13 tables designed to capture comprehensive details of input services received, ITC-distributed credit/debit notes, and amendments to previous filings.

Important Sections in GSTR-6:
 

Example: If Ramesh credited ₹10,000 IGST in June to the wrong unit (e.g., Delhi instead of Pune), he can correct this in July by using Table 11. The reallocation ensures the eligible unit receives the correct credit and maintains GST compliance.

Reconciliation with GSTR-1 and GSTR-2A

GSTR-6 automatically collects input supply data from the GSTR-1 filed by the supplier. However, input tax credit should match with GSTR-2A to ensure error-free credit distribution.

Importance of Reconciliation:
 

• Prevents mismatches that can lead to credit loss
   
• Reduces the chances of GST notices
   
• Ensures timely and accurate distribution of ITC

Reconciliation Tools:
 

• GSTN offline reconciliation utility
   
• Third-party GST software for real-time matching of GSTR-6 and GSTR-2A

Example: On 12th June, ABC Pvt Ltd uploads an invoice of ₹15,000 IGST, which reflects in Ramesh’s GSTR-2A. If Ramesh forgets to declare this in GSTR-6 for June, he must correct it through an amendment in July’s return to ensure proper credit flow.

How to Amend GSTR-6: Rectification Rules?

Corrections to past GSTR-6 filings are allowed through Table 11. Amendments can include changes to GSTINs, invoice details, or tax amounts.

Key Points:
 

• Use Table 11 to report corrections in the return of the current period
   
• Amendments are valid only if the return is not under audit or legal notice
   
• Ensure accurate details to prevent rejection or mismatch

Example: Ramesh mistakenly reported invoice number 1010 instead of 1001 for an input credit of ₹8,000 in March. In April’s GSTR-6, he uses Table 11 to correct the invoice number and reassign the correct ITC to the appropriate unit.

Conclusion

GSTR-6 is a monthly return under the GST regime for Input Service Distributors. The return helps in the receipt and passing of input tax credits to the respective branches or units. Timely and proper filing by companies not only helps in smooth credit flow but also avoids penalties and compliance issues.

Proper matching of GSTR-1 and GSTR-2A, periodic error tracing, and application of Table 11 for amendments are mandatory practices for compliance. For those businesses that have operations across different locations, GSTR-6 is the key link between centralised procurement and decentralised use of credit.

FAQs: 
 

Is GSTR-6 applicable to all GST taxpayers?
No, it applies only to taxpayers registered as Input Service Distributors (ISDs).
 

Can GSTR-6 be revised after submission?
No, it cannot be revised. However, you can make amendments in subsequent GSTR-6 returns using Table 11.
 

What are the consequences of not filing GSTR-6?
Late filing leads to penalties, interest, loss of ITC credit for branches, and potential GST notices.
 

Is NIL filing mandatory for GSTR-6?
Yes, even if no ITC was received or distributed in a month, a NIL GSTR-6 must be filed.

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