Are you a GST-registered taxpayer who files GSTR-6? Late fees and penalties for non-compliance in GSTR-6 can significantly impact your business. From late filing fees to interest charges, understanding these penalties is crucial for every taxpayer. Stay tuned to learn more about the potential financial implications of non-compliance in GSTR-6 and how to avoid them.
What is GSTR-6, and why is it filed?
GSTR-6 is a monthly return form that businesses operating as Input Service Distributors (ISD) must submit under the Goods and Services Tax (GST) regime.
Organisations must file GSTR-6 because it captures details of the documents involved in distributing Input Tax Credits (ITC) and outlines the process of credit distribution along with the tax invoices used for calculations. Consequently, even when there’s no activity, every ISD must submit GSTR-6.
What is an ISD?
Input Service Distributor or ISD is a taxpayer under GST that receives invoices for the services used by its branches and distributes the tax, also known as Income Tax Credit or ITC under central tax (CGST), State tax (SGST), Union territory tax (UTGST), or integrated tax (IGST) paid on the said services. These branches may have different GSTINs but should be registered under the same PAN number.
Prerequisites for Filing GSTR 6
- You need a 15-digit PAN-based GSTIN and registration as a taxpayer under GST.
- Your company’s total revenue should be at least ₹20 Lakhs.
- All registered Input Service Distributors (ISD) under GST, excluding those under the composition scheme or with a Unique Identification Number (UIN), are eligible to file GSTR 6.
- Non-resident taxpayers are not required to file this return.
- Maintain documentation for all taxable purchases made on behalf of your other businesses or subsidiaries.
- Additionally, ensure that you record how you allocated the input tax credit received for your purchases among your branches through internal transactions.
How to File GSTR-6?
Step-1. Go to the official GST portal.
Step-2 Login using your credentials.
Step-3. Click on ‘RETURN DASHBOARD.’
Step-4. Select the desired month and year for filing the return, then click the ‘SEARCH’ icon.
Step-5. Choose ‘Return for input service distributor GSTR6’ from the two icons.
Step-6 Click on ‘PREPARE ONLINE.’
Step-7 Complete and submit the consent form.
Step-8 Fill in the necessary details section by section, ensuring accuracy and attaching supporting documents.
Step-9 Review all the provided information, make any necessary corrections, and then submit the form.
Step-10 The return status in the “RETURN DASHBOARD” will change to “Filed” once the submission is successful.
What is GSTR-6A?
GSTR 6A is a form automatically generated using the information supplied by the suppliers to an Input Service Distributor in their GSTR 1. It’s important to note that GSTR-6A is a read-only document, and any modifications needed must be addressed during the filing of GSTR-6.
Remember: There’s no need to file GSTR-6A separately. It’s meant for viewing purposes only. You can access GSTR-6A by navigating to the Return Dashboard on the GST Portal and clicking ‘PREPARE ONLINE’ on the GSTR-6A tile.
Also Read: GSTR-6 Due Date: Everything You Need to Know
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 made while filing the subsequent month’s GSTR-6. This approach ensures that rectifications can be made promptly in the following filing period.
When is the Deadline for GSTR-6 Filing?
- GSTR 6 for a specific month can be filed by the conclusion of that same month.
- The due date for submitting this return is the 13th day of the subsequent month. (For instance, if you are reporting the GSTR 6 for June 2022, the deadline is July 13, 2022.)
Penalties for late Submission
As per the GST Act, you must file the GSTR-6 Form by the 13th of the following month. Late fees are now reduced to Rs. 50 per day. It’s important to note that no reduction provision applies if you’re filing a NIL return.
How do you deposit a Late Fee?
The GST portal will automatically calculate the late fee amount when you submit your GST returns. Late fees for CGST and SGST must be paid separately in cash using separate electronic cash ledgers. You must first pay the applicable late fees before filing a GST return. The late fee for the current month includes any late fee from the previous month due to a delay in filing the return. Additionally, non-payment or late payment of GST attracts interest charges.
Interest on Late Fee
According to GST rules, delays in the payment of GST taxes will incur an annual interest rate of 18%, with a late fee charged for each day beyond the tax payment due date.
GSTR-6 is the return that needs to be filed by Input Service Distributors (ISDs) in India. ISDS must file this return promptly and accurately to avoid late fees or penalties. The late fees for non-compliance in GSTR-6 can range from Rs. 200 to Rs. 500 per day of delay, depending on the severity of the non-compliance. Additionally, penalties can be imposed for incorrect or false information provided in the return. Therefore, ISD must stay current with the filing requirements and ensure timely and accurate Submission of GSTR-6 to avoid any unnecessary financial burden.
Related Read: Amendments and revisions in GSTR-6
Frequently Asked Questions(FAQ)
What happens when you fail to pay GST late fees?
When it comes to GST late fees, there’s no escape route. These fees automatically carry over to your next GST return. In essence, there’s no option to skip paying late fees. The system will firmly stand its ground, preventing you from filing your GST returns until these fees are settled.
What happens if you don’t file your GST for six months?
Neglecting to file your GST returns for half a year may lead to cancelling your GST registration.
Can the Form GSTR-6 filing deadline be extended?
The government can extend the Form GSTR-6 filing deadline through an official notification.