Question 15 - The credit of tax paid on input service used by more than one supplier is ________ (a) Distributed among the suppliers who used such input service on pro rata basis of turnover in such State. (b) Distributed equally among all the suppliers. (c) Distributed only to one supplier. (d) Cannot be distributed.
FAQ on GST dated 21.9.2016 based on Draft Model GST Chapter 11 Concept of Input Service Distributor in GST
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Input service credit distribution: allocate shared tax credit pro rata by each supplier's turnover in the State. Credit of tax paid on an input service used by more than one supplier is allocated through the Input Service Distributor and distributed among the suppliers who used such input service on a pro rata basis of turnover in the relevant State, rather than being distributed equally or assigned to a single supplier.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Input service credit distribution: allocate shared tax credit pro rata by each supplier's turnover in the State.
Credit of tax paid on an input service used by more than one supplier is allocated through the Input Service Distributor and distributed among the suppliers who used such input service on a pro rata basis of turnover in the relevant State, rather than being distributed equally or assigned to a single supplier.
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