Input Service Distributor (ISD) under GST and filings of return Form GSTR-6

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    • Registration of Input Service Distributors (ISD), under GST is required only to distribute credit on tax invoices received centrally on services to units that actually use those services in the course of their business.
    • The registration of ISD under the existing regime (i.e. under Service Tax) would not be migrated in GST regime. All the existing ISDs will be required to obtain fresh registrations under new regime in case they want to operate as an ISD.
    • Different offices like marketing division, security division etc. may apply for separate ISD.
    • The common credit used by all the units can be distributed by ISD on pro rata basis i.e. based on the turnover of each unit to the aggregate turnover of all the units to which credit is distributed.
    • Since they do not normally have a net tax liability, a simplified return has been specified in form GSTR-6
    • Form GSTR-6 would be filed by 13th of the succeeding month. Late filing would be permitted on payment of late fees only.
    • Form GSTR-6 would capture the following information:
      • Basic details of the Taxpayer i.e. Name along with GSTIN
      • Period to which the Return pertains
      • Final invoice-level inward supply information pertaining to the tax period separately for goods and services on which the ITC is being claimed. This will be auto populated on the basis of GSTR-1 filed by the Counterparty Supplier of the taxpayer. The same may be modified i.e. added or deleted by the Taxpayer while filing the ISD return. The recipient would be permitted to add invoices (not uploaded by the counterparty supplier) if he is in possession of invoices and have received the services.
      • Details of the Invoices along with the GSTIN of the receiver of the credit i.e. to whom the ISD is distributing credit.
      • There will be separate ISD Ledger in the return that will detail the Opening Balance of ITC (to be auto- populated on the basis of previous return), credit for ITC services received, debit for ITC reversal and ITC distributed and Closing Balance.

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