ISD Registration under GST

[CABIJENDERKUMAR BANSAL]

Al present we are taking some services which are common for company and used for all plants of company like Noida, Rajasthan , Chennai...

Following are list of services at Company Level:-

1.Management Fee

2.Trademark Fee

3.Banking Loan Fee

4. Crisil Rating Fee

5.D&B Fee

6.Statutory Auditors Fee & Tax Audit Fee

7.Several Professional Expenses

8.Transfer Pricing Fee

9.Driver Expense for Directors

10.Reimbursement Exp. of Directors Like Travelling, Credit Card exp.

11.Marketing Staff Exp. Salary Booked in one plant

12.Common Corporate Staff like Finance, Technical etc. Booked in one plant

13.Other miscellaneous services

As per my Opinion these all expenses should be booked in Head Office and then bill to all plants and charge GST as per provisions.

So for that activity whether we need to take ISD registration and make proper arrangement for these activities ? . As every related person is distinct person in GST and need to follow GST provision accordingly.

Please share your opinion so that we can decide our future course of action.

CA Gorav Goyal

[DR.MARIAPPAN GOVINDARAJAN]

The expenses shown are common one that can be incurred in the Head Office as rightly indicated by you. It can be distributed to all its branches and liable to take registration as ISD. Even though the branches in every state is a distinct person and these expenses are not supplied from the head office to branch office. As such this may be distributed. This is my view.

However it is a good question.

[Ganeshan Kalyani]

Common input availed at head office can be distributed to locations in the ratio of turnover.

[KASTURI SETHI]

If the query has been termed as good, the reply by Sh.Mariappan Govindarajan, Sir is also an excellent. There is no element of 'supply' in this scenario. It is distribution only. Only single registration as ISD of Head Office would suffice as per GST law. I also support the view of Sh.Ganeshan Kalyani Ji.

AI Summary

ISD registration: head office may register as single ISD to distribute common input costs across branches under GST. ISD registration under GST: centrally availed common inputs do not constitute a supply to branch offices and may be distributed by a single head office ISD registration, with allocation to branches using an appropriate key such as turnover ratio.