GSTR-6 is the monthly return filed by entities registered as Input Service Distributors (ISDs) under the GST framework. An ISD is typically the head office or a branch of a business that receives Input Tax Credit on invoices for services used by multiple branches and distributes this credit proportionately to the recipient units. GSTR-6 must be filed by the 13th of the month following the reporting period.
What Is an Input Service Distributor?
An Input Service Distributor is an office of a supplier of goods or services that receives tax invoices for input services and distributes the ITC to its branches or units using a prescribed document. The ISD mechanism is particularly relevant for large organisations with a centralised procurement function (such as a head office) and multiple operational branches across different states.
For example, a company’s head office in Mumbai may centrally procure IT, advertising, and legal services. The GST paid on these services needs to be distributed to the manufacturing units in Gujarat and Karnataka based on their respective turnover shares. The head office acts as the ISD, receiving all input service invoices and distributing the credit through GSTR-6.
ISD vs Regular ITC Claiming
| Feature | Input Service Distributor | Regular Taxpayer |
| Purpose | Distributes the ITC received centrally to multiple branches | Claims ITC directly for own business use |
| Registration | Separate ISD registration required (in addition to regular GST registration) | Standard GST registration |
| Return filed | GSTR-6 (monthly) | GSTR-3B (monthly/quarterly) |
| ITC distribution | Proportionate distribution to recipient branches based on turnover | Direct credit to own electronic credit ledger |
| Credit type | Only input services (not goods or capital goods) | Inputs, input services, and capital goods |
| Distribution document | ISD invoice or credit note | Tax invoice or debit note |
| Filing deadline | 13th of the following month | 20th of the following month (GSTR-3B) |
Step-by-Step Guide to Filing GSTR-6
Step 1: Log in to the GST Portal
Access the official GST portal and log in using the ISD’s GSTIN, password, and captcha code.
Step 2: Navigate to the Returns Dashboard
From the top menu, select Services, then Returns, then Returns Dashboard. The File Returns screen will display available returns for the ISD registration.
Step 3: Select the Filing Period
Choose the relevant financial year and month from the dropdown menus. Click Search to load the GSTR-6 return for the selected period.
Step 4: Generate GSTR-6 Summary
Click Prepare Online on the GSTR-6 tile. Scroll to the bottom of the page and click Generate GSTR-6 Summary. This step is critical because it triggers the auto-population of data from GSTR-6A into your return.
GSTR-6A is an auto-drafted document containing details of input services reported by your suppliers in their GSTR-1 and GSTR-5 filings. After generation, wait for the system to populate the data before proceeding.
Step 5: Review Input Tax Credit Received (Table 3)
Table 3 displays the ITC received from suppliers. Review each invoice entry for accuracy. You can accept, reject, or modify the auto-populated entries. Accepted invoices will be included in the ITC available for distribution. Rejected invoices will not form part of the distributable credit.
Step 6: Enter ITC Distribution Details (Table 4)
Table 4 captures the distribution of ITC to recipient branches. For each recipient unit, enter the recipient’s GSTIN, the ISD invoice or credit note details, the amount of ITC distributed (CGST, SGST/UTGST, IGST, and cess), and the basis of distribution (turnover-based proportion).
The distribution must follow the prescribed rules. ITC attributable to a specific branch is distributed entirely to that branch. ITC not attributable to any specific branch is distributed proportionately based on the turnover of each recipient branch in the preceding financial year relative to the total turnover of all recipient branches.
Step 7: Enter Debit and Credit Notes (Table 5)
If suppliers have issued credit notes reducing the original invoice value, the ISD must proportionately reduce the ITC previously distributed. Enter the credit note details, the original invoice reference, and the ITC reduction amount for each affected recipient branch.
Step 8: Preview, Verify, and Submit
Review the complete return by clicking the Preview button. Verify all entries against your records. Once satisfied, submit the return using DSC (mandatory for companies and LLPs) or EVC (available for other entity types). Upon successful submission, an ARN is generated as a confirmation of the filing.
ITC Distribution Rules
| Rule | Description |
| Proportionate distribution | ITC not attributable to a specific branch is distributed based on the turnover ratio of recipient branches |
| Specific attribution | ITC clearly attributable to one branch is distributed entirely to that branch |
| CGST/SGST distribution | If ISD and the recipient are in the same state, distribute as CGST and SGST. |
| IGST distribution | If ISD and the recipient are in different states, distribute as IGST. |
| Credit note adjustment | When a supplier issues a credit note, ISD must proportionately reduce the distributed ITC. |
| No excess distribution | ITC distributed cannot exceed the ITC available to the ISD |
| No distribution of goods ITC | ISD can distribute only input services credit, not credit for goods or capital goods |
From April 1, 2025, amendments to the ISD mechanism require all common input service credits to be mandatorily routed through the ISD registration. Direct claiming of common input service credits by individual branches without ISD distribution is no longer permitted.
Common Mistakes in GSTR-6 Filing
Frequent errors in GSTR-6 filing include distributing ITC on goods or capital goods (only input services are eligible), using incorrect turnover ratios for proportionate distribution, failing to generate the GSTR-6 summary before data entry (resulting in missing auto-populated supplier data), distributing more credit than available in the ISD’s account, not adjusting for supplier credit notes in the subsequent month, and filing GSTR-6 without reconciling with the suppliers’ GSTR-1 data.
ISDs should maintain a monthly reconciliation between the ITC received (from supplier invoices and GSTR-6A) and the ITC distributed (through ISD invoices and GSTR-6). Any mismatch should be investigated and resolved before filing.
Key Terms
• Input Service Distributor (ISD): A GST-registered office that receives tax invoices for input services and distributes the ITC proportionately to its branches
• GSTR-6A: The auto-drafted return containing supplier-reported input service details, auto-populated from GSTR-1 and GSTR-5 filings
• ISD Invoice: The document issued by an ISD to distribute ITC to a recipient branch, containing the GSTIN of the recipient and the credit amount
• Turnover-Based Distribution: The method of distributing common ITC proportionately based on each recipient branch’s turnover relative to total turnover
• Table 3: The GSTR-6 section displaying ITC received from suppliers for review, acceptance, or rejection
| 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 ITC Distribution Across Branches?
Ensure accurate and compliant ITC distribution through your ISD registration. Use WFYI tools to track supplier invoices, calculate turnover-based distribution ratios, and file GSTR-6 on time. Explore GST Tools on WFYI
Frequently Asked Questions
Q1: Who is required to file GSTR-6?
All taxpayers registered as Input Service Distributors under GST must file GSTR-6. An ISD is typically a head office or branch that receives input service invoices centrally and distributes ITC to other branches of the same entity.
Q2: What is the due date for filing GSTR-6?
GSTR-6 must be filed by the 13th of the month following the reporting period. For example, the GSTR-6 for January 2026 is due by February 13, 2026.
Q3: Can an ISD distribute ITC on goods and capital goods?
No. An ISD can distribute ITC only on input services. Credit on goods (inputs) and capital goods must be claimed directly by the branch that receives and uses them through their own GSTR-3B filing.
Q4: What is GSTR-6A, and how does it relate to GSTR-6?
GSTR-6A is an auto-drafted document generated from suppliers’ GSTR-1 and GSTR-5 filings. It auto-populates into GSTR-6 when the summary is generated, providing the ISD with a pre-filled list of input service invoices for review and acceptance.
Q5: How is ITC distributed when it is not attributable to a specific branch?
Common ITC (not attributable to any specific branch) is distributed proportionately based on each recipient branch’s turnover in the preceding financial year, divided by the total turnover of all recipient branches combined.
