GSTR-6 Filing: Simplify Compliance with Taxilla's Software

GSTR 6: What is it?
Companies that are also Input Service Distributors are required to file a document each month called the Goods and Services Tax Return 6. The information on purchases and inbound supplies from other registered taxpayers (B2B) as well as the input tax credit distribution across the organization's branches must be included in this report.

Form GSTR-6 filing: Who needs to file it, and is it required?

To file Form GSTR-6, one must only be registered as an Input Service Distributor (ISD). Monthly filing of this return is required. If there is neither any available ITC for distribution nor any ITC distributed during the month, a "Nil" return has to be made.

Should I file Form GSTR-6 by a certain date?

Only by the 13th of month M+1, or the extended period, if applicable, can ISD returns for month M be filed.

Why does GSTR 6 matter?
Details of all the documents distributed for the purpose of distributing input tax credits, as well as information on how credits are distributed and the tax invoices used to claim credits, are included in GSTR 6. Even if it is a nil return, all ISDs must file GSTR 6.

Requirements for submitting a GSTR-6
-> A 15-digit PAN-based GSTIN and GST registration are prerequisites for filing the GSTR-6.
-> Your company should have an overall revenue of more than 20 lakh rupees.
-> All GST-registered input service distributors who have not chosen the composition scheme or obtained a Unique Identification Number (UIN) are subject to this refund. Taxpayers who are not residents are likewise not eligible for this refund.


Which methods are available for signing Form GSTR-6?
Form GSTR-6 can be submitted via EVC or DSC.

(a) Certificate of Digital Signature (DSC)

Digital Signature Certificates are the digital equivalent of physical or paper certificates (DSC). A digital certificate can be used to electronically verify identification, grant access to online content or services, or digitally sign certain documents. In India, DSCs are granted by recognized Certifying Authorities. Only PAN-based DSCs are accepted on the GST Portal.

(b) The EVC, or Electronic Verification Code

On the GST Portal, the Electronic Verification Code (EVC) authenticates a user's identity by generating an OTP. The authorized signatory's registered mobile number, which they provided in part A of the registration application, is where the OTP is transmitted.

How to submit a GSTR 6 form
The GSTR 6 format is used to collect data on inward supply and ITC. Let us look more closely at each section.

GSTIN: Based on your unique PAN, this is the field where you enter your 15-digit Goods and Services Taxpayer Identification Number (GSTIN).
-> Name of the Taxpayer: The name of your company's registered taxpayer should be entered in this section.
-> Time Period (Month-Year) - Indicate the time frame for which the GSTR-6 is being filed.

Products From Taxpayers Who Have Registered ?
In accordance with this provision, you, the ISD, must disclose all of the purchases you have made from other companies that are registered under the Goods and Services Tax (GST) as well as the total amount of input credit or tax refund that you have claimed against the several tax heads (CGST, SGST, and IGST) this month. This also applies to transactions in which reverse charge is used to collect the tax.

The good news is that this information will be automatically created if the suppliers of the products or services you purchased submit their GSTR-1 or GSTR-5 (if the suppliers are overseas taxpayers).

Information down to the invoice level is also required for purchases in which the goods were delivered in separate lots.

You have the ability to change the details of purchases you made during previous tax periods by using Section 4A of the GSTR-6. If so, you must additionally provide documentation in the form of the updated invoices in addition to the original ones.

Details of Credit/Debit Notes: In this section, you can list all of the credit and debit notes you have raised for this month's transactions.
Any debit or credit note that was issued during a prior tax period can be changed by utilizing GSTR-6's Section 5A.

Input Service Distribution: In this case, you, as the input service distributor, must supply the information about each branch that receives input credit, including the relevant GSTIN and the total amount of ISD credit allotted under the various GST components (IGST, CGST, and SGST).
Updates to the credit amount distributed in prior tax months can be made using Section 6A of GSTR-6. Should you change this information for a certain tax year, you must provide documentation of both the initial transactions and the updated versions of those transactions.

ISD Ledger: This portion contains a record of every transaction made between an organization's headquarters and its branches in order to allocate the ITC that the headquarters received to each branch. This ledger records the Input Tax Credits that are distributed, returned, and received. The data falls into one of the three GST (Goods and Services Tax) categories (SGST, CGST, and IGST).

You must electronically sign the GSTR-6 after completing all of its sections and attesting to its accuracy.

What is the difference between Form GSTR-6 before and after the delinking of Credit/ Debit Notes?

For More Information visit Government portal

Conclusion: Filing GSTR-6 accurately and on time is essential for Input Service Distributors (ISDs) to ensure compliance with GST regulations in Malaysia. By managing input tax credits efficiently, your business can streamline tax processes, reduce errors, and maintain compliance.

Stay ahead in your GST compliance journey with Taxilla. Our comprehensive e-invoice software simplifies the GSTR-6 filing process, ensuring that your business remains compliant and efficient. Contact Taxilla today to learn how we can help you navigate the complexities of GST with ease!

Frequently Asked Questions

1. Who must file GSTR-6, and what is it?

GSTR-6 is a monthly return required to be filed by Input Service Distributors (ISDs) to report the distribution of input tax credits (ITC) to their branches.

2. Is it mandatory to file GSTR-6 even if there is no ITC distribution?

Yes, ISDs must file a GSTR-6 return every month, even if no ITC was distributed. In such cases, a "Nil" return is required.

3. What is the due date for filing GSTR-6?

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

4. What details are required to be reported in GSTR-6?

GSTR-6 requires details of all inbound supplies, ITC distribution, credit/debit notes, and adjustments made during the tax period.

5. How can I sign and submit the GSTR-6 form?

GSTR-6 can be signed and submitted using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

6. What happens if I fail to file GSTR-6 by the due date?

Late filing of GSTR-6 may result in penalties and interest. Additionally, it may disrupt the distribution of ITC to your branches.

7. Can I amend details in GSTR-6 after submission?

Yes, amendments to details such as ITC distribution or credit/debit notes can be made in subsequent GSTR-6 filings for the relevant tax periods.

8. What is the difference between GSTR-6 before and after the delinking of credit/debit notes?

After delinking, ISDs no longer need to enter the original invoice number and date when reporting credit/debit notes. Other fields and processes have also been simplified.

9. Is it possible to carry forward late fees from one tax period to another?

No, late fees are specific to the tax period in which they are incurred and cannot be carried forward to subsequent periods.

10. How can Taxilla?s e-invoice software help with GSTR-6 filing?

Taxilla?s software streamlines the GSTR-6 filing process by automating data entry, ensuring timely compliance, and reducing the risk of errors.