With a prime and clear vision of ‘One Nation – One Tax – One Market’, Goods and Services Tax was introduced by the Government. Apart from its various benefits, it has been playing a major role too in removing cases of tax evasion, bribery and other forms of corruption from the country.
Keeping in view the ease of different types of tax-payers, different kinds of GST Return Forms have been introduced as well. And presently, everything pertaining to Tax has become online, i.e. easier and transparent in comparison to the previous tax system.
Here in this Blog post we shall know all about:
ISD stands for ‘Input Service Distributor’.
Details required to be furnished
|GSTIN (Goods and Services Taxpayer Identification Number )||15 digit GSTIN (state-wise PAN based alpha-numeric number) should be entered.|
|Name of the Registered Taxpayer||This gets generated automatically when the tax payer login to Govt.’s GST Portal and enters the unique GSTIN.|
|Tax Period||Exact Tax Period for which GSTR-6 is being filed; to be selected from drop-down option.|
Received ITC for Distribution
|ISD need to furnish details of supplies received from a registered person and the amount of input credit available for the current tax period.|
The entire details of inward supply will be auto-populated from counter-party GSTR-1 and GSTR-5.
Under this heading, the taxpayer needs to enter the amount of credit available for CGST/SGST/IGST (as the case may be).
|In case, purchases have been made in more than one lot, the details of all the invoices should be reported in the return period (in which the last lot has been received and recorded in books of accounts).|
|Total ITC/ Eligible ITC/ Ineligible ITC to be distributed for the tax period||In this table, all the eligible and ineligible credit separation from the total ITC which is available is required to be furnished CGST/SGST/IGST wise.|
|Details of Distribution of the ITC||The ITC (either eligible or ineligible) allocable to the respective recipient shall be shown here, tax-wise separately.|
|Any changing in Distribution documents and debit / credit notes of previous tax periods||Any amendment (correction) or changing in any distribution document and debit or credit note of previous months shall be reported under this heading.|
|Mismatch of ITC to be distributed during the tax period and reclaims|
|Here under this heading, Reversal and Reclaim of ITC shall be reported and such reversal or reclaim (as the case may be) shall be allocated amongst the recipients tax wise.|
|Redistribution of ITC as it was distributed to a wrong recipient last time||All the details of original distribution document and the details of redistribution documents are required to be specified recipient wise as well as invoice wise.|
Late Fee Details (if any)
|Here, complete information against the late fee on account of CGST/SGST/IGST is required to be furnished mandatorily.|
|Refund claimed from Electronic Cash Ledger||If any refund has been/is to be claimed from electronic cash ledger, the details of the same are required to be mentioned here containing the bank details specified.|
Following the below steps GSTR-6 can be filed online on the GST Portal easily and quickly.
Step 1: Firstly visit the GST common Portal and then enter ‘User name’ and ‘password’ and now click on the ‘LOGIN’ button to proceed to your account.
Step 2: A welcome message will be shown and now click on the ‘RETURN DASHBOARD’.
Step 3: From the dropdown option, choose the appropriate ‘Financial Year’ and then the ‘Return Filing Period’ (i.e. month) for which GSTR-6 has to be filed, and now click on the ‘SEARCH’ button.
Step 4. By clicking on the ‘PREPARE ONLINE’ button select ‘Return for input service distributor GSTR6’. On the right, there is one more option ‘Details of auto drafted supplies GSTR6A’. It is auto-generated GSTR-6A (only to be viewed by the user).
Step 5: One can see the invoice details and distribution of input tax credit after clicking GSTR- 6.
Step 6: Now click on ‘3 – Input Tax Credit received for distribution’ under the head ‘Invoice Details’. A new page will be displayed. And, click on the ‘ADD MISSING INVOICE DETAILS BUTTON’.
Step 7: All the details like ‘Supplier’s GSTIN’, ‘Supplier Name’ will be appeared automatically while ‘Invoice no.’, ‘Invoice Date’, ‘POS’, ‘Total Invoice Value’ and ‘Supply Type’ needs to be provided by the user.
Step 8: Now click on the ‘BACK’ for viewing the page displayed during ‘Step 5’. Here choose the box titled ‘6B – Debit Notes/Credit Notes received’. And, now click on ‘ADD CREDIT NOTE/DEBIT NOTE’ button.
Step 9: Details of credit note with ‘Supplier GSTIN’, ‘Supplier Name’, ‘Note Type’ (debit/credit note) ‘Note Value’, ‘Debit/Credit Note No.’, ‘Debit/Credit Note Date’, ‘Original Invoice No.’, ‘Original Invoice Date’, ‘Supply Type’, ‘Reason For Issuing Note’ needs to be filled by the user himself / herself. And then, click on ‘SAVE’. Now the user will again land to the menu displayed in ‘Step 5’.
Step 10: Select the box ‘4 – Total ITC available and Eligible ITC/Ineligible ITC distributed’. Fill up all the details asked in the boxes and then click on ‘CALCULATE ITC’.
Step 11: Select ‘Eligible ITC’ and one can see the amount which is distributed to the branches and detailed summary of all the invoices. This comes up with any of the two options –
Step 12: Select ‘Ineligible ITC’, a detailed summary of the amount distributed to various branches (which is ineligible) will be displayed. Again this may show any of the two options –
Step 13: Details like ‘Eligibility of ITC’, ‘Unit type’, ‘Document type’, ‘ISD invoice number’ and ‘ISD invoice date’ needs to be filled up appropriately. And now, proceed by clicking on ‘SAVE’.
Step 14: Form GSTR-6 gets auto-populated. And details of Input credit received for distribution and debit/credit notes received during current period is reflected of its own in the form.
Step 15: Now click on the last option ‘10 – Late Fee’ under heading ‘GSTR-6 – Other Details’. After filling up all the details appropriately, click on the checkbox under heading ‘GENERATE GSTR-6 SUMMARY’ and finally click on ‘SUBMIT’ and then on ‘FILE RETURN’ to complete the filing process of GSTR-6.
Every registered person has to file GSTR -6 on or before the prescribed due date. But, if someone fails to act accordingly will be charged with late fee of – lo
(i) ₹ 50/day (CGST – ₹ 25/day + SGST – ₹ 25/day),
(ii) ₹ 20/day (CGST ₹ 10/day and SGST ₹ 10/day) (in case of any tax liability).
(iii) In case of NIL tax liability, late fees would be charged from the due date to the date when the returns are filed, subject to a maximum of ₹ 5,000.
Abide by the prescribed rules is the best idea to abstain from hefty penalties and further complications in GST regime. But, for a common individual filing GSTR-6 online would cause a little difficulty. So, contacting the certified and credible service provider is highly recommended because in the GST Regime it is quite essential for every Input Service Distributors to know all about GSTR-6.
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