TaxTMI 
TaxTMI 
Concept of Input Service Distributor in GST
X X X X Extracts X X X X
X X X X Extracts X X X X
....gistration even though it may be separately registered. The threshold limit of registration is not applicable to ISD. The registration of ISD under the existing regime (i.e. under Service Tax) would not be migrated in GST regime. All the existing ISDs will be required to obtain fresh registration under new regime in case they want to operate as an ISD. Q 3. Whether the distributor and the recipient situated in different states can have different PAN number? Ans. No. It is mandatory that the Input Service Distributor and the recipient of credit are persons having the same PAN, whether or not they are located in the same State. Q 4. What are the documents for distribution of credit by ISD? Ans. The distribution of credit would be done thr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed under entry 84 and 92A2 of List I and entry 51 and 54 of List II of the Seventh Schedule to the Constitution. (The entry 92A Inserted vide CGST (Amendment) Act, 2018; Notn for implementation is yet to be issued) Q 8. Is the ISD required to file return? Ans. Yes, ISD is required to file monthly return by 13th of the following month in form GSTR-6. Q 9. Can a company have multiple ISD? Ans. Yes, different offices like marketing division, security division etc. may apply for separate ISD. Q 10. What are the provisions for recovery of excess/wrongly distributed credit by ISD? Ans. The excess/wrongly distributed credit can be recovered from the recipients of credit along with interest by initiating action under section 73 or 74. (Sectio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and vice versa. Similarly, one State SGST cannot be distributed as another state SGST. Q 15. How to distribute common credit among all the recipients of an ISD? Ans. The common credit used by all the recipients can be distributed by ISD on pro rata basis i.e. based on the turnover of each recipient to the aggregate turnover of all the recipients to which credit is distributed. (Rule 54(1A) of the CGST Rules, 2017) Q 16. What are the conditions applicable to Input service distributor to distribute the credit? Ans. An Input Service Distributor can distribute the credit subject to the following conditions: (a) The credit can be distributed to recipient against a document containing such details as prescribed in Rule 54(1) of the CGST Rule....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ecipient is to be calculated in the following way: C1 = (t1/T) x C Where C1 = Amount distributed to a recipient C = Amount of credit to be distributed t1 = Turnover of the recipient during the relevant period T = Aggregate of the turnover of all the recipients during the relevant period (d) Q 20. How will the input tax credit having already distributed be reversed on issuance of an ISD credit note? Ans. The credit reduced by issuance of an ISD credit note is to be apportioned to each recipient in the same ratio in which the credit of the original invoice was distributed. The amount mentioned in the credit note should be reduced from the amount to be distributed in the month in which credit note is issued. If the amount of credit bein....