GSTR-6: Monthly Return for Input Service Distributors (ISD)

GSTR-6 is the monthly GST return filed by an Input Service Distributor (ISD) to report input services received and the Input Tax Credit (ITC) distributed to eligible recipient units. The return is an important compliance mechanism for businesses having common input-service expenses across multiple GST registrations.

Who is an Input Service Distributor?

Under Section 2(61) of the CGST Act, an ISD is an office of a supplier that receives invoices for input services on behalf of distinct persons and distributes the corresponding ITC to those recipients. (Tax Information)

Importantly, Section 20 of the CGST Act was substituted with effect from 1 April 2025 by the Finance (No. 8) Act, 2024. The amended provision requires an office receiving input-service invoices for distinct persons to be registered as an ISD and distribute the eligible ITC in accordance with the prescribed rules. (Tax Information)

What is GSTR-6?

GSTR-6 is the prescribed monthly return for an ISD. Rule 65 of the CGST Rules provides that the ISD must electronically furnish FORM GSTR-6 containing details of tax invoices on which credit has been received and the documents issued for distribution of ITC. (CBIC GST)

The return broadly captures:

• Details of input-service invoices received by the ISD

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• Eligible and ineligible ITC available for distribution

• ITC distributed to recipient GST registrations

• ISD invoices and credit notes issued for distribution or reduction of ITC

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• Relevant adjustments arising from credit or debit notes

GSTR-6 Due Date

GSTR-6 is required to be furnished by the 13th day of the month following the relevant tax period. Section 39(4) of the CGST Act prescribes the filing period for an ISD, while the GST Portal's taxpayer guidance also specifies the 13th of the following month as the regular due date. (CBIC GST)

For example:

• GSTR-6 for July 2026 → due by 13 August 2026

• GSTR-6 for August 2026 → due by 13 September 2026

Any specific extension notified by the Government should be checked before filing.

Key Points for ITC Distribution

The ISD must ensure that ITC is distributed correctly among the eligible recipient registrations. Under Section 20 and the related rules:

• ITC attributable exclusively to a recipient should be distributed only to that recipient.

• ITC attributable to more than one recipient is distributed among the relevant recipients based on the prescribed turnover mechanism.

• ITC attributable to all recipients is distributed among the eligible recipients according to the prescribed formula.

• Eligible and ineligible ITC must be appropriately identified and distributed.

• The nature of tax credit—CGST, SGST/UTGST and IGST—must be considered while making the distribution. (Tax Information)

Importance of Timely Filing

Timely and accurate filing of GSTR-6 helps recipient units receive the appropriate ITC and maintain consistency in their GST records. Details furnished through GSTR-6 are made available to recipient units through the GST system. (Tax Information)

Businesses should therefore reconcile:

• Supplier invoices with books of account

• ITC appearing in GST records

• ITC eligible for distribution

• Distribution made to each GSTIN

• ISD invoices and credit notes

• Credit notes or other subsequent adjustments

Conclusion

GSTR-6 is an important monthly compliance requirement for businesses operating through multiple GST registrations and using an ISD mechanism for common input services. With the ISD provisions becoming mandatory under the amended Section 20 from 1 April 2025, businesses should ensure proper registration, ITC allocation, reconciliation and timely filing.

For expert guidance on this topic, contact your tax professional today.

EXCERPT: GSTR-6 is the monthly return for Input Service Distributors to report input services and distribute eligible ITC to recipient GST registrations.

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