Are you familiar with the amendments and revisions in GSTR-6? The Goods and Services Tax Return-6 (GSTR-6) is an important document that must be filed by Input Service Distributors (ISDs) in India. Understanding the latest updates and changes in GSTR-6 is crucial to ensure compliance with tax laws and avoid penalties. This article will explore the recent amendments and revisions in GSTR-6, discussing their implications and providing valuable insights to help you navigate the process seamlessly. Stay tuned for everything you need to know about GSTR-6 amendments and revisions.
What is GSTR 6?
An Input Service Distributor must file GSTR 6, a monthly return. It entails providing details about ITC received and distributed by the ISD. This return is divided into a total of 11 sections.
What is an ISD?
The Input Service Distributor is an office within a business entity that receives tax invoices for services its branches utilise. It allocates the paid tax proportionally among the business departments and generates an ISD invoice.
Significance of ISD
The ISD concept offers a solution for businesses dealing with substantial shared expenses and centralised billing or payments. This mechanism aims to streamline credit retrieval for entities, bolstering the smooth flow of credit within the framework of GST.
Where to File GSTR-6?
You can file the GSTR-6 form on the GST Portal. To do this, follow these steps:
- Log in to the portal.
- Click on the “Services” tab.
- Choose “Returns” and then select “Returns Dashboard.”
Prerequisites for Filing Form GSTR-6
Registration as ISD and Active GSTIN:
The recipient must possess an active Goods and Services Tax Identification Number (GSTIN) and hold the status of an Input Service Distributor (ISD) to qualify for filing Form GSTR-6.
Ability to File for Cancelled GSTINs during Active Period:
Even for GSTINs that have been cancelled, the recipient can file Form GSTR-6 within the period when the GSTIN was active. This provision allows the recipient to manage and report transactions accurately during the relevant time frame.
Possession of Valid Login Credentials:
The recipient must possess valid login credentials. These credentials are used to access the GST Portal and initiate the filing process for Form GSTR-6.
Valid and Unexpired Digital Signature Certificate:
To ensure the authenticity and security of the filing process, the recipient must hold a valid and unexpired Digital Signature Certificate (DSC). The DSC serves as an electronic signature and is used to sign the return before submission digitally.
Active Mobile Number for EVC Authentication:
An active mobile number registered in the recipient’s GST Portal profile is crucial for Electronic Verification Code (EVC) authentication. This number receives the OTP (One-Time Password) required for verifying the recipient’s identity during the filing process.
Modes of signing Form GSTR-6
Digital Signature Certificate (DSC)
A Digital Signature Certificate (DSC) is an electronic version of traditional physical or paper certificates used as signatures. It can be presented electronically to establish one’s identity, access the internet securely, or digitally sign documents. In India, authorised Certifying Authorities issue DSCs. The GST Portal exclusively accepts PAN-based Class II and III DSCs for authentication.
Electronic Verification Code (EVC)
The Electronic Verification Code (EVC) validates the user’s identity by generating a One-Time Password (OTP) at the GST Portal. This OTP is subsequently dispatched to the registered mobile phone number of the authorised Signatory, as indicated in Part A of the Registration Application.
Revision of GSTR 6
Under the GST Act, GSTR-6 revisions are not permissible. The regulatory framework does not encompass provisions about the revision of GSTR-6.
In the event of any errors made during the filing of GSTR-6 for a specific month, the correction of these errors can be facilitated while filing the subsequent month’s GSTR-6. This approach ensures that rectifications can be made promptly in the following filing period.
Amendments in GSTR-6
Using Section 4A of the GSTR-6
If you need to change the details of your earlier tax period purchases, you can amend or modify them using Section 4A of the GSTR-6. However, along with the modified details, it’s essential to provide the original and revised invoices as supporting documentation.
Section 5A of GSTR-6
Through Section 5A of GSTR-6, you can amend debit/credit notes that were issued in previous tax periods.
What happens after Form GSTR-6 is filed?
Generation of Authorised Reference Number:
Following the successful submission of Form GSTR-6, an Authorised Reference Number is generated as confirmation.
Instant Notifications via SMS and Email:
Prompt notifications are dispatched to the applicant’s registered mobile number and email address, ensuring real-time updates on the filing status.
Auto-Population of Details for Counterparty Suppliers:
When modifications or additions are made to Form GSTR-6, the related details are automatically populated into the counterparty supplier’s corresponding Form GSTR-1 or Form GSTR 5. This integration streamlines the process and maintains consistency across associated forms.
Amendments and revisions in GSTR-6 are essential to the GST filing process. GSTR-6 is the return form that needs to be filed by Input Service Distributors (ISDs) to declare the details of input tax credit (ITC) received and distributed during a particular period. However, there might be instances where mistakes or changes need to be made in the filed return. The GST portal provides a facility for amendments and revisions in GSTR-6, allowing businesses to correct errors or update previously submitted information. This facility to make amends ensures accuracy and compliance with the GST regulations. Companies must stay updated with any changes or amendments required in their GSTR-6 returns to avoid penalties or legal complications.\
Also Read: GSTR-6 Due Date: Everything You Need to Know
Frequently Asked Questions (FAQ)
- Can we amend the credit allocation in Form GSTR 6 for previous tax periods? If so, how?
You can make adjustments by using ISD invoices and documenting the changes in Table 5 and Table 8 of Form GSTR-6, specifying eligible and ineligible distribution to the units.
- What occurs when there isn’t enough balance to cover the liabilities?
You can generate a challan to fulfil your outstanding liabilities if your balance is insufficient.