GSTR-6 is the monthly GST return filed by every entity registered as an Input Service Distributor (ISD) under the GST framework. The return captures details of Input Tax Credit (ITC) received from suppliers and the distribution of this credit to recipient branches. Filing is mandatory by the 13th of the month following the tax period, even when no transactions have occurred (nil return). From April 1, 2025, the ISD mechanism has been made mandatory for distributing common input service credits
What Is GSTR-6 and Who Must File It?
GSTR-6 is a specific monthly return required from every entity registered as an Input Service Distributor. An ISD is typically the head office or a designated branch that receives invoices for input services used commonly across multiple branches of the same entity. The ISD collects the ITC on these invoices and distributes it proportionately to the recipient units.
Every ISD must file GSTR-6 monthly, regardless of transaction volume. Even if no input services were received and no ITC was distributed in a particular month, a nil GSTR-6 must be filed to avoid late fees. The return cannot be revised directly; errors must be corrected in the subsequent month’s filing.
ISD Registration Requirements
| Requirement | Details |
| Registration type | Separate ISD registration required (in addition to regular GST registration) |
| Who qualifies | Head office, branch, or any office that receives common input service invoices |
| Legal basis | Section 2(61) of the CGST Act defines ISD; Section 20 governs ITC distribution |
| Mandatory from | April 1, 2025 (previously optional) |
| Credit type | Only input services; not goods or capital goods |
| Distribution basis | Turnover-based proportion of recipient branches in the preceding financial year |
GSTR-6A: The Auto-Generated Reference
GSTR-6A is a system-generated, read-only document that auto-populates from the details furnished by the ISD’s suppliers in their GSTR-1 filings. It provides a pre-filled list of input service invoices for the ISD to review.
GSTR-6A cannot be edited directly. Any corrections must be made when filing GSTR-6. The ISD reviews GSTR-6A, accepts or rejects invoice entries, and then files GSTR-6 with the approved data, along with any additional entries not captured in GSTR-6A.
To access GSTR-6A, navigate to the Return Dashboard on the GST portal and select Prepare Online for the GSTR-6A tile. GSTR-6A itself does not require filing; it serves solely as a reference document.
Structure of GSTR-6: All 11 Tables
| Table | Title | Content |
| 1 | GSTIN | The ISD’s 15-digit GST Identification Number (auto-populated) |
| 2 | Name of registered person | Legal and trade name of the ISD (auto-populated) |
| 3 | Input tax credit received for distribution | Invoice-wise details of all input services received, auto-populated from GSTR-6A. |
| 4 | Total ITC / Eligible ITC / Ineligible ITC | Summary of total credit, eligible credit, and ineligible credit for the tax period |
| 5 | Distribution of ITC reported in Table 4 | Complete distribution details to each recipient branch with GSTIN, credit amount, and distribution ratio |
| 6 | Amendments to information in earlier returns (Table 3) | Corrections to invoice details reported in previous months’ GSTR-6 |
| 7 | ITC mismatches and reclaims | Adjustments to ITC due to mismatches or reclaimed credit after mismatch resolution |
| 8 | Distribution of ITC reported in Tables 6 and 7 | Distribution of amended or reclaimed ITC to recipient branches |
| 9 | Redistribution of credit | Additional or corrected credit distribution from amendments |
| 10 | Late fee payable and paid | Auto-calculated late fee for delayed filing |
| 11 | Verification and submission | DSC or EVC authentication and filing confirmation |
ITC Distribution Rules Under GSTR-6
The distribution of ITC through GSTR-6 must follow specific rules prescribed under Section 20 of the CGST Act and Rule 39 of the CGST Rules.
Specific attribution. If input services are used exclusively by a single branch, the entire ITC must be distributed to that branch. No proportionate distribution applies in this case.
Proportionate distribution. If multiple branches commonly use input services, the ITC is distributed to each recipient branch based on its turnover in the state or union territory during the preceding financial year, divided by the total turnover of all recipient branches.
Same state distribution. When the ISD and the recipient branch are in the same state, credit is distributed as CGST and SGST.
Different state distribution. When the ISD and the recipient branch are in different states, credit is distributed as IGST.
No excess distribution. The ITC distributed to all recipient branches combined cannot exceed the total ITC available with the ISD for that period.
Credit note adjustment. When a supplier issues a credit note to the ISD, the ISD must proportionately reduce the previously distributed ITC and issue an ISD credit note to the affected recipient branches.
Filing Process
Step 1. Log in to the GST portal with the ISD’s GSTIN credentials.
Step 2. Navigate to Services, then Returns, then Returns Dashboard. Select the financial year and month.
Step 3. Click Prepare Online on the GSTR-6 tile. Click Generate GSTR-6 Summary to trigger auto-population from GSTR-6A.
Step 4. Review Table 3 entries (ITC received). Accept, reject, or modify auto-populated invoice data.
Step 5. Complete Table 4 (ITC summary) and Table 5 (distribution to recipients). Enter each recipient’s GSTIN, the credit amount, and the distribution basis.
Step 6. Enter any amendments (Table 6) and mismatch adjustments (Table 7) if applicable.
Step 7. Preview the complete return. Submit using DSC (mandatory for companies and LLPs) or EVC.
Late Fee and Compliance
| Compliance Aspect | Details |
| Filing deadline | 13th of the following month. |
| Late fee | Rs.50 per day (Rs. 25 CGST + Rs. 25 SGST). |
| Nil return late fee | Same as regular late fee (Rs. 50 per day; no reduction for nil). |
| Revision | Not permitted; errors must be corrected in the subsequent month’s filing. |
| Non-filing consequence | Recipient branches cannot claim ITC distributed by the ISD. |
| Mandatory filing | Required every month, including nil returns. |
Mandatory ISD from April 2025
Notification No. 16/2024-Central Tax (August 6, 2024) amended Sections 2(61) and 20 of the CGST Act, making ISD provisions mandatory effective April 1, 2025. Previously, the ISD mechanism was optional, and businesses could choose to have individual branches claim common input service credits directly.
From April 2025, all common input service credits must be routed through the ISD registration. Individual branches can no longer directly claim credits on invoices addressed to the head office or a centralised procurement entity. This change ensures consistent credit distribution across branches and reduces disputes related to credit entitlement.
Key Terms
• Input Service Distributor (ISD): A GST-registered office that receives common input service invoices and distributes ITC proportionately to its branches using GSTR-6
• GSTR-6A: An auto-generated, read-only document populated from suppliers’ GSTR-1, serving as a reference for the ISD when filing GSTR-6
• Turnover-Based Distribution: The method for distributing common ITC based on each recipient branch’s turnover relative to the total turnover of all branches
• Rule 39 CGST Rules: The rule prescribing the methodology for ISD credit distribution, amended by Notification No. 12/2024 (July 10, 2024)
• ISD Credit Note: A document issued by the ISD to reduce previously distributed ITC when the supplier issues a credit note to the ISD
| Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Consult a qualified tax professional for advice specific to your situation. |
Managing ISD Compliance?
Ensure accurate ITC distribution and timely GSTR-6 filing across all branches. Use WFYI tools to track supplier invoices, calculate distribution ratios, and maintain compliance. Explore GST Tools on WFYI
Frequently Asked Questions
Q1: Is GSTR-6 filing mandatory even when there are no transactions?
Yes. Every ISD must file GSTR-6 monthly, including nil returns when no input services were received or distributed. Failure to file attracts a late fee of Rs. 50 per day, with no reduction for nil returns.
Q2: Can GSTR-6 be revised after submission?
No. The GST framework does not permit direct revisions to GSTR-6. Errors identified in a submitted return must be rectified in the GSTR-6 filing for the subsequent month through the amendment tables.
Q3: What is the difference between GSTR-6 and GSTR-6A?
GSTR-6 is the actual return filed by the ISD. GSTR-6A is a system-generated, read-only reference document auto-populated from suppliers’ GSTR-1 filings. GSTR-6A provides pre-filled data for the ISD to review before filing GSTR-6.
Q4: Can an ISD distribute credit for goods and capital goods?
No. An ISD can distribute ITC only on input services. Credit for goods (inputs) and capital goods must be claimed directly by the branch that receives and uses them through their own GSTR-3B.
Q5: Is the ISD mechanism mandatory from April 2025?
Yes. Following Notification No. 16/2024 (August 6, 2024), ISD provisions are mandatory from April 1, 2025. All common input service credits must be routed through the ISD registration; branches cannot claim them directly.
