Whether ISD Registration requirement in case of No Common Services

[PANKAJ MASKARA]

As per the Finance Act, 2024, ISD Registration is required for entities with multiple GST Registration under the same Pan.

However, if no common Services is being availed.

Please Clarify whether Registration is required.

[KASTURI SETHI]

    See the meaning and sense of the term, 'Common Input Service'  along with definition of ISD. {Emphasis is laid on the word, 'common'}.

  You have used the word, 'IF' before 'No Common Service'.

Pl. clarify and elaborate how services are not common. If services are not common, then what is the purpose of distributing the same to the other units under the same PAN.

            

[Raam Srinivasan Swaminathan Kalpathi]

Circular 199 dt. 17-Jul-23 should clarify this query.

[Shilpi Jain]

There may not be centralised procurement but there would be expenses incurred at company level like say Stat audit expenses, any business consultant services, etc.

Pls evaluate your expenses before coming to a conclusion.

[K.lakshmipati rao]

Slew of Common Services [other than Goods]:-

(i) Statutory Auditors Fee,

(ii) Internal Auditors Fee,

(iii) Company Secretary,

(iv) Professional Fee to CA for Certification charges,

(v) Security Services – [RCM],

(vi) Advocate Services [RCM],

(vii) Software Services,

(viii) Sponsorship Services,

(ix) Retainership fee,

(x) Advertisement, Digital and Marketing Services,

(xi) Lease Rent [RCM] and

(xii) Bank Charges [select transactions like Bank loan etc.,],

(xiii) Other common Services, if any, for ISD 

AI Summary

Clarification Sought on ISD Registration Need for Entities with Multiple GSTs Under Finance Act 2024, Circular 199 Cited A query was raised regarding the necessity of Input Service Distributor (ISD) registration under the Finance Act, 2024, for entities with multiple GST registrations under the same PAN when no common services are availed. Responses included a request for clarification on what constitutes non-common services, referencing Circular 199 for guidance, and suggestions to evaluate company-level expenses like statutory audits and professional fees. A list of potential common services, such as audit fees, security services, and bank charges, was provided to assess the need for ISD registration.