Guide and FAQ-who needs to file Form GSTR-6 and is it mandatory?

Taxpayer’s guide on who needs to file Form GSTR-6 and is it mandatory to file this form. 23 Frequently asked Questions and Answers

FAQs Form GSTR-6

1. What is Form GSTR-6?

Form 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.

2. Who needs to file Form GSTR-6 and is it mandatory to file this form?

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

3. By when do I need to file Form 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 or the extended date, if any.

4. From where can I as taxpayer file Form GSTR-6?

Form GSTR-6 can be accessed on the GST Portal, post login in the Returns Dashboard by the taxpayer.

The path is Services > Returns > Returns Dashboard.

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

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

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

Yes, it is mandatory to take action against all invoices/CDN auto populated in your Form GSTR-6, failing which you will not be able to file Form GSTR-6.

7. What actions can I take on invoice data auto populated in table 3 & 6 of Form GSTR-6?

For invoices or credit/debit notes data received in Form GSTR-6, you can take following actions:

a. Accept

b. Reject

c. Modify

d. Keep Pending

8. What actions can I take on invoice data auto populated in table 6A & 6C of Form GSTR-6?

For invoices or credit/debit notes data received in Form GSTR-6, you can take following actions:

a. Accept

b. Reject

d. Keep Pending

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

Yes, you can file your Form GSTR-6 return even if your counterparties have not filed their respective Form GSTR-1 or Form 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.

10. What happens if Form GSTR 6 is filed before Form GSTR-1/5 and then Form GSTR-1 and Form GSTR-5 are filed?

In case Form GSTR-1 and Form GSTR-5 are not filed by the counterparties till 10th of the month succeeding the tax period, there will be no auto-population of B2B details in Form GSTR-6A and Form GSTR-6 for that tax period. In such an event, ISD has to add missing invoices/CDN using the “ADD MISSING INVOICE DETAILS/ADD CREDIT NOTE/DEBIT NOTE” functionality and these details will be available under “Uploaded by supplier” table. 

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

11. Is there any Offline Tool for filing Form GSTR-6?

Yes, there is an offline tool for filing Form GSTR-6.

12. Is there any late fee in case of delayed filing of Form GSTR-6?

Yes, there is a late fee as per prescribed law.

13. Is there an Electronic Credit Ledger available for ISD Registrations?

No, there is no Electronic Credit Ledger maintained for ISD Registrants, since ISD has to only distribute credit available during a tax period.

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

No. Eligible Input Tax Credit will be auto updated in Table no. 4 based on the invoice/CDN uploaded (based on the action taken on the Auto drafted from Form GSTR-1/5) in Table no 3 & 6. The eligibility is to be mentioned only at the time of distribution of Credit to units.

Note: – Input Tax Credit (ITC) for distribution shall be available only against such inward supplies wherein the Place of Supply (POS) is same as the State where ISD is registered.

15. 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 person.

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

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

17. Can I amend the credit allocated to the units in Form 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 Form GSTR-6.

18. Can the date of filing of Form GSTR-6 be extended?

Yes, date of filing of Form GSTR-6 can be extended by Government through notification.

19. What are the pre-conditions for filing Form GSTR-6?

Pre-conditions for filing of Form GSTR-6 are:

· Recipient should be Registered as ISD and should have an active GSTIN.

· Recipient should have valid login credentials (i.e., User ID and password).

· Recipient should have valid and non-expired/ unrevoked Digital Signature Certificate (DSC which is mandatory for companies, LLPs and FLLPs).

· Recipient 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 thereof for authentication through EVC.

·  Recipient will have an option to file Form GSTR-6 for cancelled GSTINs for the period in which it was active.

20. What happens after Form GSTR-6 is filed?

After Form GSTR-6 is filed:

  • ARN is generated on successful filing of the Form GSTR-6 Return.
  • An SMS and an email are sent to the applicant on his registered mobile and email id
  • In case of modifications or additions in Form GSTR-6, such details are auto-populated in Form GSTR-1//5 of counterparty supplier.

21. What are the modes of signing Form GSTR-6?

You can file Form GSTR-6 using DSC, or EVC.

Digital Signature Certificate (DSC)

Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. A digital certificate can be presented electronically to prove one’s identity, to access information or services on the Internet or to sign certain documents digitally. In India, DSC are issued by authorized Certifying Authorities.

The GST Portal accepts only PAN based Class II and III DSC.

To obtain a DSC, please contact any one of the authorised DSC-issuing Certifying Authorities:

Electronic Verification Code (EVC)

The Electronic Verification Code (EVC) authenticates the identity of the user at the GST Portal by generating an OTP. The OTP is sent to the mobile phone number of the registered mobile phone of Authorized Signatory filled in part A of the Registration Application.

22. Can I preview the Form GSTR-6 before submitting?

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

23. What information can be modified and cannot be modified by ISD in an invoice/CDN in Form GSTR-6?

An ISD can modify the POS, Total invoice value and taxable value in an invoice/CDN in Form GSTR-6.

Supplier GSTIN, Invoice Number, Invoice date cannot be modified by the recipient in an invoice in Form GSTR-6.

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