ISD’s can now file GSTR-6 Form for the month of Aug 2017 to Jan 2018 over the Government portal site.
What is GSTR 6?
GSTR 6 is a monthly return that has to be filed by an ISD. It contains details of Input Tax Credit (ITC) received by an ISD and distribution of ITC.
There are a total of 11 sections in file GSTR-6 Form.
What is the importance of this return?
GSTR 6 contains details of all the documents issued for distribution of ITC and the manner of distribution of credit and tax invoice on which credit is received. GSTR 6 has to be filed by every ISD even if it is a nil return.
Who should file GSTR-6 Form?
GSTR 6 has to be filed by every Input Service Distributors on the monthly basis.
Here is the step-by-step guide to file GSTR-6 Form on the GST Portal/ GSTN.
Step 1: Login to GST Portal.
Step 2: Click on ‘RETURN DASHBOARD’.
Step 3: Select the month and year of filing form from the drop-down menu and click on ‘SEARCH’ Button.
Step 4: There are 2 tiles on the screen. On the tile ‘Return for input service distributor(ISD) GSTR-6’ click on ‘PREPARE ONLINE’ Button.
Step 5: Scroll down to the bottom of the page and click on ‘GENERATE GSTR-6 SUMMARY’ Button.
A confirmation message is displayed. The details are auto-populated in some time.
Note: This is an important step. By clicking on this button the details in GSTR-06A will be auto-populated in your GSTR-06.
Step 6:3-Input tax credit(ITC) received for distribution
Once the details are auto-populated you need to click on ‘3 – Input tax credit received for distribution’. You should be able to see a list of GSTIN of vendors from whom you have purchased supplies.
Verify the details by going to each vendor by clicking on the GSTIN.
There are 5 types of action that can be taken here:
- Modify Invoices added by Supplier – This action should be taken when some details on the invoice are not correct. Click on the ‘Edit’ icon and you can make the changes in the invoice details according to your records after that Click on ‘SAVE’ Button.
- Accept Invoices added by Supplier – When the details are according to your records and match with the details as provided by your supplier you can accept the invoices. Select the checkbox beside each invoice and click on ‘ACCEPT’ button.
- Reject Invoices added by Supplier – When all the details in an invoice appear to be incorrect as per your records you can reject these invoice. Select these invoices by clicking on the checkboxes and click on the ‘REJECT’ button.
- Keep Pending Invoices added by Supplier – This action should be taken when you are not sure about certain details on the invoice. Select that invoices and click on ‘PENDING’ button.
- Add missing invoice details not added by Supplier – In case some invoices have been missed by your supplier you can add them by clicking on ‘ADD MISSING INVOICE DETAILS’. Fill in the details and click on ‘SAVE’ button.
Note: These actions can be taken and changed any number of times before filing the return.
Step 7: 6B – Debit Notes/ Credit Notes Received
This tile contains the details of all the Debit and Credit Notes filed by your supplier. The action to be taken here is same as the above steps like Accept, Reject, Modify, Pending or Add Invoice in this step.
Step 8: 5, 8 – Distribution of input tax credit (ISD Invoices & ISD Credit notes)
This is one of the most important steps in filing GSTR-06. Click on ‘Add Document’.
Enter the following details:
- Eligibility of ITC: Whether the ITC being distributed is eligible or ineligible for credit
- Unit Type: Registered or unregistered unit
- GSTIN of the Registered recipient
- ISD Document Type: Invoice or Credit Note
- Invoice Number, Date of Invoice, Credit Note Number and Date (if applicable)
- Tax amount
- Click on ‘SAVE’ button after entering all the details.
Step 9: 4 – Total ITC available and Eligible ITC/Ineligible ITC distributed:
Click on ‘CALCULATE ITC’. This will display the eligible ITC, total ITC, and Ineligible ITC.
Step 10: Preview and Submit the return.
Once the return is filed the status of the return on ‘RETURN DASHBOARD’ gets changed to ‘Filed’.