Distrubution of ISD credit

[Jasbir Uppal]

Dear Professionals,

Query No 1

The procedure for disturbution of input tax credit by ISD , the assessee is partnership firm having more than two GSTN in different states but on same PAN number.

Can the excess ITC be adjusted with the liability of tax payable in another state under section 20 of CGST Act,2017 ?

Query No 2

As per 23rd GST Council meeting in Guwahati most of items have been shifted from 28% to 18%

On the date of effecting notification the stock of material lying on effecting date the rate of tax paid @28% but post effect the rate will be 18% on outward supply.

Now our query is eligible ITC is on 28% or 18% because in VAT period most of assessing officer had revered the ITC as in those cases also the same condition prevailed.

Thanks & Regards

J S Uppal

Tax Consultant

AI Summary

Tax Consultant Queries ITC Distribution by ISD; Adjustments Across States Allowed, 28% ITC Rate Refundable Under Inverted Duty Structure. A tax consultant inquired about the distribution of input tax credit (ITC) by an Input Service Distributor (ISD) for a partnership firm with multiple GST registrations across states under the same PAN. The queries focused on whether excess ITC could be adjusted against tax liability in another state and the applicable ITC rate following a tax rate reduction from 28% to 18%. Responses indicated that both adjustments are permissible: ITC can be distributed proportionally across GST registrations, and ITC at the 28% rate is eligible, allowing for a refund under the inverted duty structure.