GSTR-6 Return Filing: Due Date, Process, Late Fees and Applicability

Imagine a company has one head office and several branches in different states. The head office receives invoices for common services, such as software subscriptions, internet services and professional fees, which are used by different branches.

How can the company distribute the eligible GST credit on these services among its branches?

This is where an Input Service Distributor (ISD) comes in. It distributes eligible Input Tax Credit among the concerned branches and reports these details through GSTR-6.

Need assistance? Connect with Startup Movers for GST registration, GST return filing, ITC management and expert compliance support to keep your business GST-compliant.

What is GSTR-6?

GSTR-6 is a monthly GST return that a registered Input Service Distributor must file to report the details of Input Tax Credit received and distributed among eligible branches or units.An ISD distributes eligible input tax credit among its eligible branches or units under the same PAN, as per the applicable GST rules.

It contains details of invoices received for input services, eligible and ineligible ITC, and the credit distributed to different units.

The return helps the government track how ITC is distributed between different GST registrations of the same business.

Who is Required to File GSTR-6?

Every registered Input Service Distributor must file GSTR-6 every month, whether it has distributed ITC during that month or not.

An Input Service Distributor (ISD) is an office that receives invoices for input services and distributes the eligible input tax credit to its eligible units.

From 1 April 2025, ISD registration became mandatory for offices covered by the amended provisions that receive input-service invoices, including specified reverse-charge service invoices, for or on behalf of distinct persons.

This requirement does not mean that every expense shared by a head office and its branches automatically falls under the ISD mechanism. The nature of the service, the invoice and the applicable GST provisions must be checked.

Why is GSTR-6 Filing Important?

GSTR-6 filing is important because it helps businesses distribute eligible ITC correctly among their branches or units.

It also helps businesses:

• Maintain proper GST records.
• Ensure the correct distribution of ITC.
• Reduce errors in credit allocation.
• Help recipient units view the credit distributed to them through GSTR-2B.
• Maintain timely GST compliance.

What Details are Included in GSTR-6?

GSTR-6 includes details of the input tax credit received by an Input Service Distributor and the credit distributed to its branches or units. The main details include:

These details help the recipient branches check the ITC distributed to them. The credit reported by the ISD is reflected in the recipient's relevant GSTR-2B records.

What is the GSTR-6 Due Date?

The normal GSTR-6 due date is the 13th day of the month following the relevant tax period.

For example: the GSTR-6 return for April must generally be filed by 13 May.

A registered ISD must file GSTR-6 every month, even if there is no ITC to distribute. In such cases, a GSTR-6 Nil return must be filed.The government may extend the due date through a notification, so businesses should check for any applicable extension.

What is the GSTR-6 Filing Process?

Before starting the GSTR-6 filing process, an ISD should check its invoice details, verify the ITC received and ensure that the credit is distributed correctly.An ISD can file GSTR-6 online through the official GST portal. Follow these steps:

• Step 1: Visit the official GST portal.
• Step 2: Log in using your GSTIN credentials.
• Step 3: Go to Services > Returns > Returns Dashboard.
• Step 4: Select the financial year and relevant tax period.
• Step 5: Find the GSTR-6 return tile and select Prepare Online.
• Step 6: Check the available invoice details and the auto-drafted information in GSTR-6A.
• Step 7: Verify the ITC received and distribute eligible and ineligible credit among the concerned units as required.
• Step 8: Review the relevant credit notes, debit notes and amendments, wherever applicable.
• Step 9: Preview the return and check all details carefully.
• Step 10: Submit and file the return using the applicable authentication method, such as DSC or EVC.

Documents Required for GSTR-6 Filing

To file GSTR-6, an ISD should keep its GSTIN details, invoices received for input services, credit and debit notes, and details of ITC distributed among eligible units ready. These records help verify the information before filing the return.

Types of GSTR-6 Forms and Their Uses

There are two forms related to the ISD return process: GSTR-6 and GSTR-6A. Both help an Input Service Distributor manage and check ITC details.

1. GSTR-6

GSTR-6 is a monthly GST return filed by every registered Input Service Distributor. It contains details of ITC received and distributed among different branches or units.

2. GSTR-6A

GSTR-6A is an auto-generated statement that shows details of inward supplies reported by suppliers. It helps the ISD check the details before filing GSTR-6.

What is the GSTR-6 Late Fee?

If an ISD does not file GSTR-6 by the due date, a late fee applies.

Under the applicable reduced late-fee provisions:

• ₹25 per day under the CGST Act.
• ₹25 per day under the applicable SGST or UTGST Act.
• The combined late fee is generally ₹50 per day.
• The maximum is generally ₹5,000 under the CGST Act and ₹5,000 under the applicable SGST or UTGST Act, subject to the relevant provisions and notifications.

The actual late fee payable should be checked on the GST portal for the relevant tax period.

What Happens if GSTR-6 is Not Filed?

Failure to complete GSTR-6 filing on time can create compliance problems for the ISD and its recipient units.

The possible consequences include:

• Late fees: The ISD becomes liable to pay the applicable late fee for delayed filing.
• Delay in ITC distribution: Recipient branches may not receive the distributed ITC details on time.
• GST compliance issues: Pending returns can affect the business's overall GST compliance.
• Filing restrictions: Specified GST returns generally cannot be filed after three years from their respective due dates, unless the government permits filing for a specified class of taxpayers or period.

Therefore, an ISD should file its monthly return within the prescribed time.

Can GSTR-6 Be Revised After Filing?

No. Once GSTR-6 has been filed, it cannot be revised.

If an error or omission is found after filing, the ISD must make the correction through the relevant permitted amendment or adjustment in a subsequent GSTR-6 return, wherever allowed under GST rules.

Therefore, it is important to check invoice details, ITC amounts and distribution information carefully before filing.

Conclusion

GSTR-6 is an important monthly return for every registered Input Service Distributor. It reports the ITC received and distributed among eligible branches or units. The return must generally be filed by the 13th of the following month, even if there is no ITC to distribute.

Businesses should verify their invoices, distribute eligible credit correctly and file the return on time to avoid late fees and compliance issues.

Need assistance? Connect with Startup Movers for GST registration, GST return filing, ITC management and expert compliance support to keep your business GST-compliant.