Input Service Distributor credit distribution requires pro rata turnover allocation and tax-head segregation under amended Rule 39. Under amended Section 20 and Rule 39 (effective 01.04.2025) an Input Service Distributor must distribute monthly available input tax credit within the same month via FORM GSTR-6, not exceeding available credit, allocating credit attributable to single recipients solely to them and allocating credit attributable to multiple recipients pro rata by each recipient's State/UT turnover during the relevant period. Distribution distinguishes eligible and ineligible ITC and segregates by tax head; integrated tax remains IGST, while central and State/UT tax are allocated as such or converted to IGST for out-of-State recipients. ISD invoices, credit and debit notes govern issuance and adjustments; wrongful or later reductions are apportioned per the prescribed formula C1 = (t1/T) x C and reflected in the monthly GSTR-6 filing.
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Provisions expressly mentioned in the judgment/order text.
Input Service Distributor credit distribution requires pro rata turnover allocation and tax-head segregation under amended Rule 39.
Under amended Section 20 and Rule 39 (effective 01.04.2025) an Input Service Distributor must distribute monthly available input tax credit within the same month via FORM GSTR-6, not exceeding available credit, allocating credit attributable to single recipients solely to them and allocating credit attributable to multiple recipients pro rata by each recipient's State/UT turnover during the relevant period. Distribution distinguishes eligible and ineligible ITC and segregates by tax head; integrated tax remains IGST, while central and State/UT tax are allocated as such or converted to IGST for out-of-State recipients. ISD invoices, credit and debit notes govern issuance and adjustments; wrongful or later reductions are apportioned per the prescribed formula C1 = (t1/T) x C and reflected in the monthly GSTR-6 filing.
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