Goods and Service Tax

A Complete Analysis of GSTR-6A under the GST tax regime

calendar27 Mar, 2023
timeReading Time: 4 Minutes
GSTR 6A

GST (Goods and Services Tax) is an indirect tax system introduced in India to replace the multiple cascading taxes levied by the central and state governments. This form is a form filed by the Input Service Distributor (ISD) under the GST regime. An Input Service Distributor (ISD) is an office of the supplier of goods or services or both which receives tax invoices issued under Section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of Central tax (CGST), State tax (SGST)/Union territory tax (UTGST) or integrated tax (IGST) paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number (PAN) as that of the said office. This article discusses about the details of the GSTR-6A- its Concept and the process of filing the form, when this form is required to file by the taxpayer along with its importance.

What is GSTR-6A?

This form is a read-only form generated automatically on the GSTN portal for an Input Service Distributor (ISD). It is a form that is generated based on the details furnished by the suppliers in their respective GSTR-1 returns. This form is a draft form that is generated for the ISD to view the details of invoices uploaded by its suppliers in their respective GSTR-1 forms. The ISD can view the GSTR-6A form, but cannot edit or submit it.

The GSTR-6A form contains the details of the invoices uploaded by the suppliers. The ISD can use this form to verify the correctness of the details furnished by the suppliers. Once the ISD verifies the details, it can use the same to distribute the input tax credit to the respective suppliers of goods or services or both. The ISD can also use this form to check if there are any discrepancies or missing invoices, and communicate the same to its suppliers for rectification.

When GSTR-6A is required to be filed by the taxpayers?

This form is a type of GST return that is required to be filed by Input Service Distributors (ISDs) in India. ISDs are entities that receive invoices for input services and distribute the input tax credit to their branch offices or other eligible recipients.

The GSTR-6A return is an auto-generated draft return that is generated on the basis of the details furnished by the suppliers in their GSTR-1 and GSTR-5 returns. The ISD can view the GSTR-6A return and make modifications or additions to it, if required. Once the ISD makes the necessary changes, they need to file the GSTR-6 return based on the GSTR-6A details.

In summary, this form is required in the following situations:

  • Input Service Distributors (ISDs) need to file this form to view the input tax credit received and distributed, based on the details furnished by their suppliers in their GSTR-1 and GSTR-5 returns.
  • ISDs can modify the auto-generated draft return and file the final GSTR-6 return based on the GSTR-6A details
  • GSTR-6A is a form of GST return that is generated by the GST system automatically for Input Service Distributors (ISDs). It contains details of the input tax credit received by the ISD from the service providers.

Time Period when GSTR-6A is generated

GSTR-6A is generated after the 13th of every month for the previous month. For example, the GSTR-6A for the month of January will be generated after the 13th of February.

What is the purpose of filing the GSTR-6A return by the taxpayer?

This form is a return form that is used to reconcile the input tax credit (ITC) claimed by the recipient of goods and services with the details uploaded by the supplier in their GSTR-1 return. This form is auto-populated with the details uploaded by the supplier in their return, and the recipient has to verify and accept the details before filing the return.

It is important to file this form accurately and on time because it helps in reconciling the ITC claimed by the recipient with the details uploaded by the supplier, which in turn helps in avoiding any discrepancies or mismatches in the ITC claimed. This ensures that the recipient is not at risk of any penalty or legal action due to mismatched or incorrect ITC claims.

Process of Filing of GSTR-6A

GSTR-6A is a system-generated read-only return, which provides details of inward supplies of goods or services received by a registered Input Service Distributor (ISD) for a particular tax period.

The process of filling this form is as follows:

  1. Access the GST Portal: Login to the GST Portal[1] using your credentials.
  • Navigate to the GSTR-6A Return Form: Go to the ‘Services’ tab on the dashboard and click on ‘Returns’. From the drop-down menu, select ‘Returns Dashboard’. Select the ‘Financial Year’ and ‘Return Filing Period’ for which you want to file the GSTR-6A return.
  • View the GSTR-6A Return Form: On the GSTR-6A return filing page, select ‘GSTR-6A’ from the drop-down list and click on ‘Prepare Online’. The system will generate the GSTR-6A return form, which will be available for viewing only. It is important to note that this form is a read-only form, which means that the ISD cannot make any changes or modifications to it. The ISD can only view and download the form from the GST portal. Any discrepancies in the form should be resolved by the service provider and the ISD should reconcile the input tax credit accordingly.
  • Verify and Confirm Details: Verify the details of the inward supplies of goods or services received by the ISD, as auto-populated by the system. Cross-check the details with your purchase register to ensure accuracy.  Download and Save the Return Form: Once you have reviewed the details, you can download the return form for future reference. However, you cannot make any changes to the form as it is a read-only return.
  • Submit the Return Form: Once you have verified the details, you can submit the return form. After submission, an acknowledgement will be generated.

Note: GSTR-6A is a read-only return, which means you cannot make any changes to it. It is generated for informational purposes only and does not require any further action. The details of the inward supplies of goods or services received by the ISD will be used to calculate the amount of Input Tax Credit (ITC) available to the ISD, which can be used to offset their tax liability on outward supplies

Conclusion

In summary, GSTR-6A is a read-only form that is generated automatically for an Input Service Distributor (ISD) based on the details furnished by the suppliers in their respective GSTR-1 returns. The ISD can use this form to verify the correctness of the details furnished by the suppliers, and distribute the input tax credit accordingly.

Read our Article:A Complete Understanding Of GSTR-4 Return Filing

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