In 2017, India embarked on a transformative journey in its tax landscape with the introduction of the Goods and Services Tax (GST). A pivotal aspect of this comprehensive indirect tax system is the GSTR-6, a monthly return that plays a vital role for Input Service Distributors (ISDs). These entities facilitate the distribution of Input Tax Credit (ITC) to their registered clients, streamlining the tax credit mechanism.
The GSTR-6 filing is an indispensable requirement for specific businesses in India. Let’s delve into the key aspects of this process to gain a better grasp of its significance.
GSTR-6 filing is mandatory for two categories of businesses:
To maintain the rhythm of this tax ecosystem, GSTR-6 filing comes with a due date. The 13th of every month is designated as the due date for filing. Nevertheless, it’s important to note that the government retains the flexibility to extend this date as needed.
When filing GSTR-6, businesses need to furnish specific information:
GSTR-6 can be filed seamlessly through the GST Portal. To initiate the process, a valid GSTIN (Goods and Services Tax Identification Number) and a digital signature certificate (DSC) are prerequisites. This digital platform streamlines the filing, enhancing the efficiency and accessibility of the process.
Timely compliance is of paramount importance in the realm of tax. Failure to file GSTR-6 on time attracts late filing fees. The initial 30-day period invites a fee of ₹50 per day, while subsequent days incur a fee of ₹100 per day.
Moreover, a continuous lapse of three months in GSTR-6 filing can lead to penalties. A penalty of ₹200 per day may be imposed for non-filing, underscoring the significance of consistent compliance.
Adhering to these essential practices can elevate the quality of your GSTR-6 filing experience:
Navigating the intricacies of GSTR-6 filing might raise questions. In such instances, don’t hesitate to reach out to the GST helpline or consult your tax advisor. Their expertise can provide valuable insights and ensure smooth compliance.
GSTR-6 filing is an integral part of the GST framework, ensuring the seamless distribution of input tax credit through Input Service Distributors. With a meticulous understanding of its requirements and diligent adherence to timelines, businesses can not only avoid penalties but also contribute to the efficacy of India’s GST regime.