Demystifying GSTR-6 Filing: A Comprehensive Guide for Businesses

19 Aug 2023

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.

Understanding GSTR-6 Filing:

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.

Who Needs to File GSTR-6?

GSTR-6 filing is mandatory for two categories of businesses:

  1. Input Service Distributors (ISDs): These entities play a crucial role in the distribution of ITC to their registered clients. Their accurate filing of GSTR-6 is essential to ensure transparency and efficiency in the ITC distribution process.
  2. Businesses with Aggregate Turnover: Entities with an aggregate turnover of ₹20 lakhs or more are also required to file GSTR-6. This provision aligns with the overarching aim of GST to bring a wide range of businesses into the tax net.

GSTR-6 Due Date and Compliance:

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.

Essential Details to Include:

When filing GSTR-6, businesses need to furnish specific information:

  1. Inward Supplies from Registered Taxpayers (B2B): A detailed account of all inward supplies from registered taxpayers should be recorded. This data ensures transparency and accuracy in the ITC distribution.
  2. Distribution of Input Tax Credit: The heart of GSTR-6 filing lies in reporting the distribution of ITC to registered customers. This step requires meticulous attention to avoid discrepancies.
  3. Input Tax Credit Reversal: Any reversal of input tax credit also needs to be accurately documented in the return.

The Filing Process:

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.

Adhering to Timelines: Late Filing and Penalties:

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.

The Path to Prudent Filing:

Adhering to these essential practices can elevate the quality of your GSTR-6 filing experience:

  1. Thorough Preparation: Gather all required information and documents before initiating the filing process. This proactive approach minimizes errors and streamlines the process.
  2. Meticulous Review: Before submitting the return, conduct a comprehensive review to ensure accuracy and completeness. This step reduces the risk of inadvertent errors.
  3. Maintain Records: Preserve a copy of the filed return for your records. This serves as a safeguard in case of future reference or audits.

Seeking Assistance:

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.

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