Input Service Distributor credit allocation must be documented and distributed pro rata to recipients based on State turnover.

Section 20 requires an Input Service Distributor to issue a document showing the amount of input tax credit distributed; credit may be given only to recipients against prescribed documentation and not exceeding available credit. Credit attributable to a single recipient must go only to that recipient, while credit attributable to multiple recipients must be distributed pro rata based on each recipient's State or Union territory turnover in the relevant period relative to the aggregate turnover of operational recipients. Relevant period, recipient definition (same PAN) and turnover adjustments are specified.

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