1. Basics of GSTR-6

GSTR 6 is a monthly return that has to be filed by an Input Service Distributor. It contains details of ITC received by an Input Service Distributor and distribution of ITC. There are a total of 11 sections in this return. 

GSTR 6 contains details of all the documents issued for distribution of Input Tax Credit 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.

The due date for filing of GSTR 6 as per GST Act is 13th of next month. Late fees have been reduced to Rs. 50 per day. However, no provision for reduction is made where NIL return is filed.

2. What, Why & Who should file ISD

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 organization in proportion of usability.

A). Purpose of GSTR-6 

An Input service distributor (ISD) is a business which receives invoices for services used by its branches. It distributes the tax paid to such branches on a proportional basis by issuing an ISD invoice.

B). Benefit of GSTR-6

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 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 optimizing’s tax planning efforts.

3. Who should file

Only those persons who are registered as Input Service Distributor (ISD) need to file Form GSTR-6. It is a mandatory return, to be filed on a monthly basis. 

A 'Nil' return must be filed in case of no ITC being available for distribution or no ITC is being distributed during the month.

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.

4. 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.  

A). Validation of Counter-party GSTIN with GSTN database. 

B) Filters to VIEW invoices

C). Error/ Warnings sign for accuracy

D). Name of counter-party in GSTR 6A and Reconciliation view

E). GET GSTR-6A: Form GSTR-6A is a read only form. You can get GSTR-6A for the reconciliation purpose.

F). Reconciliation between GSTR-6A & your books

G). Category wise reconciliation result

H). Action rights for taxpayer

I). ISD Allocation

J). Synchronization to GST portal

K). Fetch GSTR-6 summary

L). Cross ITC Utilization

M). Save cross ITC Utilization

N). Comparison of GSTR-6 EMG & GST portal

On a short note the taxpayer can easily file their GSTR-6 with ease & accuracy via EaseMyGST. They only need to add the GSTIN number for ISD return in their account. 

They also performed the reconciliation between EMG books & GSTR-6A. It will ease their working to understand the difference between both sheets with a category wise result of reconciliation. With the help of this activity they can take action for Uploaded or as per GSTR-6A data.