TaxTMI 
TaxTMI 
As per GST authorities, GST credit on the services which are exclusively used by Head office (Maharashtra) cannot be distributed among factories outside Maharashtra as input service distribution. e.g. Rent of HO, security services at HO, printing and stationery etc. According to them, these credits have to be distributed only to Maharashtra normal registration. Since there is no activity in Maharashtra, we used to distribute these credits to factories in sales ratio earlier to other factories outside Maharashtra. Is the stand taken by authorities correct?
Input Service Distribution
11 Apr 2019 
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Input service distribution: credits for services exclusive to head office remain with state's registration; common services apportioned by turnover.
Input tax credit for services exclusively used by a single registered unit must be allocated only to that unit's registration; common input services may be distributed by an Input Service Distributor (ISD) to recipient registrations sharing the same PAN on a pro rata basis by turnover. An ISD must register separately, issue prescribed ISD invoices, distribute credits monthly and report in GSTR-6; ISDs cannot handle reverse charge supplies and may require cross charges for head office administrative support to out of State units. (AI Summary)
Input tax credit for services exclusively used by a single registered unit must be allocated only to that unit's registration; common input services may be distributed by an Input Service Distributor (ISD) to recipient registrations sharing the same PAN on a pro rata basis by turnover. An ISD must register separately, issue prescribed ISD invoices, distribute credits monthly and report in GSTR-6; ISDs cannot handle reverse charge supplies and may require cross charges for head office administrative support to out of State units. (AI Summary)