Tax Invoices to be received by an ISD for distribution

[Vinay Kunte]

Our Client whose Head Office is a registered Taxpayer since Jul-2017 as provider of services, is also liable to pay GST under RCM, Import of Services ,etc. and is also receiving tax Invoices from many service providers who are providing common services to all or some of its manufacturing plants as well as branches and depots. He has been receiving these Invoices under the Registered GSTIN as a taxpayer since Jul-2017. Now realising that the ITC claimed on these supplies is getting accumulated unnecessary blocking the find flow, he has a separate obtained the Registration as an ISD. Now, my query is that does he need to get the Tax Invoices from the suppliers of common services to have the New GSTIN as an ISD or can he distribute the ITC covered under the Invoices received with the old GSTIN for distribution?

Please advice.

AI Summary

Separate ISD Registration Required for ITC Distribution; Old Invoices Won't Populate. Refunds Under Section 54 Discussed. A client with a head office registered for GST since July 2017 is facing issues with accumulated ITC from common service providers. They obtained a separate registration as an Input Service Distributor (ISD) and inquired whether they need new GSTIN invoices for distributing ITC. Responses suggest that a separate ISD registration is necessary, and old invoices won't populate under the new ISD number. It is advised to share the new ISD number with suppliers for future credit distribution. Regarding past accumulated ITC, refund options under Section 54 of the CGST Act were discussed, but feasibility is questioned. Billing adjustments or using existing GSTIN for output tax liability were suggested as alternatives.