...
What, Why & Who should file ISD:
GSTR-6:
GSTR-6 is a monthly return that must be submitted by every taxpayer registered as an Input Service Distributor (ISD) under the Goods and Services Tax (GST) system. It is a crucial GST Return for businesses acting as Input Service Distributors, facilitating the seamless distribution of input tax credit among various units or branches within an organisation organization in proportion of usability.
...
The concept of ISD is a facility made available to businesses having a large share of common expenditure and billing or payment is done from a centralised centralized location.
The mechanism is meant to simplify the credit taking process for entities and the facility will strengthen the seamless flow of credit under GST.
The company's main office or headquarters becomes responsible for distributing the tax credit to its branches by registering as an ISD. This helps streamline the credits flow, ensuring compliance with GST regulations and optimising optimizing’s tax planning efforts.
Who should file:
...
To file the GSTR-6: You must be a registered taxpayer under the GST with a 15 digit PAN based GSTIN. The aggregate turnover of your business should be greater than 20 lakh rupees.
EMG Offerings for GSTR-6:
Excel Upload: Upload data in .CSV file as per EMG input format. Input format designed keeping in view the need to absorb changes in the GST Law.
...
Action rights for taxpayer
ISD Allocation
Synchronisation Synchronization to GST portal
Fetch GSTR-6 summary
Cross ITC UtilisationUtilization
Save cross ITC UtilisationUtilization
Comparison of GSTR-6 EMG & GST portal
...