Every Input Service Distributor who is registered on the GST portal as a taxpayer entity or individual needs to file for GSTR 06 monthly. The Input Service Distributors are required to publish all their details, invoices and documents on which credit has been received. With GSTR 06 taxpayers are required to furnish information about Input Tax Credit and Inward Supplies.
What is GSTR 6?
GSTR 6 – The Goods and Service Tax Return 6 is a monthly tax return that needs to be filled by Input Service Distributors who are registered on the GST portal as business entities, corporation or individuals.
Who are Input Service Distributors?
Input Service Distributors is an office of the supplier of goods and services both of which receive tax invoices towards services provided by them. An Input Service Distributor (ISD) is a registered taxpayer that receives invoices for services used by their different branches all over the country. ISDs then distribute the Input Tax Credit (ITC) to such branches by issuing and furnishing ISD invoices. One of the prerequisites of issuing these invoices is that the branches can have different GST Identification Numbers, GSTIN but they all need to be registered under the same PAN card of the ISD.
Let’s say, for example, Aisha Pre School Ltd. has branches all over major metro cities in India such as Delhi, Bangalore, Kolkata and Mumbai. However, the head office of the preschool is in Kolkata. The head office maintains all the major expenses such as maintenance of the annual invoicing software on behalf of its branches. The branches all over India can issue their own invoices and thus the Input Tax Credit of all the services cannot be claimed only in Kolkata. They have to be distributed between all the locations in India. Therefore, the head office located in Kolkata is known as the Input Service Distributor.
Why is GSTR 6 Important?
Since large corporations have branches all over the country, which means invoices are generated throughout, there needs to be a common mechanism and common marketplace that can be responsible for these invoices. Hence, the job of an Input Service Distributor is important to manage all the documents, invoices and manage the Input Tax Credit.
GSTR form 6 contains all the information mentioned above and hence the filling of GSTR 6 is of utmost importance.
When is the GSTR 6 Due Date to File Monthly?
The due date for filing GSTR form 6 according to the governing bodies is by the 13th of the following month for which the returns need to be filed.
For example, Aisha Pre School Ltd. are filling the form GSTR 6 for the month of May 2021. The form needs to be filled and submitted by 13th June 2021 latest. Anything post that will lead to penalties, fines and interest due.
The form can also be filled by the end of the current month in case your form is ready to go and be submitted.
What are the prerequisites for filing form GSTR 6?
- The individual, business or corporation needs to be a registered GST entity on the GST Portal and they need to be eligible for paying taxes. They need to have a 15 digit PAN based on the GST Identification Number, GSTIN.
- The turnover of the business should be more than INR 20 lakhs. Only businesses that have a turnover greater than INR 20 lakhs are eligible for paying GST.
- Only individuals or entities that are qualified as Input Service Distributors are required and can fill the form GSTR 6. Non-resident Indians, NRIs cannot fill this form.
- While filing for form GSTR 6 the taxpayer needs to furnish the details of tax invoices on which credit has been received.
Who cannot File Form GSTR 6?
As mentioned above, only taxpayers who are eligible as Input Service Distributors are eligible for filing form GSTR 6.
Hence, the following are excluded from the list:
- Non-Resident Taxable Individuals or Entities
- Compounding Taxable Persons
- Suppliers of Online Information and Database Access or Retrieval (OIDAR)
- Taxpayers liable to collect TCS
- Taxpayers liable to deduct TDS
- Composition Dealers
What is the penalty for not filing GSTR 6?
GSTR 6 needs to be filled within the 13th of every following month. Failing to do so, the taxpayer is required to pay a fine of INR 50 per day. In case of no returns or nil returns, no fine is to be paid or charged.
Can the form GSTR 6 be revised?
No. Once the form has been filled, verified and submitted no changes can be made to the form that has been submitted. In case of any changes that need to be made or edited, the taxpayer can do so in the following months when filing for GSTR 6 in the future.
Example: Aisha Pre School Ltd. filed the form GSTR 6 for the month of May 2021 by 10th June 2021, well in time before the due date. However, on 12th June 2021, the company realised some information mentioned on the form needs to be edited or corrected. However, since the form has been submitted, no changes can be made to the form. In case they wish to make the changes, they can only do so while filing for GSTR 6 for the month of June 2021.
What is GSTR 6A?
GSTR 6A is an auto-generated read-only form that is furnished once the details provided by the suppliers of an Input Service Distributor are filled in GSTR 1.
GSTR 6A is a read-only document and any changes that need to be made to the form need to be made in the form of GSTR 6 and not on GSTR 6A.
If you wish to view the form GSTR 6A follow the following steps: Return Dashboard on the GST portal and then click on Prepare Online on the GSTR 6A Tile.
This is all the major information you need to know about GSTR 6A.
What is the timeline given to the tax official for approving the TDS registration application?
After receiving the registration application for the first time, the tax office has three working days to process it as TDS. If the taxpayer gets queries, they must respond within seven working days. After the taxpayer responds, the tax office has seven working days to process the TDS registration.