TaxTMI 
TaxTMI 
Manner of distribution of credit by Input Service Distributor [ Section 20 of CGST Act read with Rule 39 ]
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....; Attribution of Credits between among of recipient (c) the credit of tax paid on input services attributable to a recipient of credit shall be distributed only to that recipient; (d) the credit of tax paid on input services attributable to more than one recipient of credit shall be distributed amongst such recipients to whom the input service is attributable and such distribution shall be pro rata on the basis of the turnover in a State or turnover in a Union territory of such recipient, during the relevant period, to the aggregate of the turnover of all such recipients to whom such input service is attributable and which are operational in the current year, during the said relevant period; (e) the credit of tax paid on input services attributable to all recipients of credit shall be distributed amongst such recipients and such distribution shall be pro rata on the basis of the turnover in a State or turnover in a Union territory of such recipient, during the relevant period, to the aggregate of the turnover of all recipients and which are operational in the current year, during the said relevant period; (f) the input tax credit that is required to be distributed in....
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...., as provided in rule 54(1), clearly indicating in such invoice that it is issued only for distribution of input tax credit; (l) the Input Service Distributor shall issue an Input Service Distributor credit note, as provided in rule 54(1), for reduction of credit in case the input tax credit already distributed gets reduced for any reason; (m) any additional amount of input tax credit on account of issuance of a debit note to an Input Service Distributor by the supplier shall be distributed in the manner and subject to the conditions specified in clauses (a) to (j) and the amount attributable to any recipient shall be calculated in the manner provided in clause (f) and such credit shall be distributed in the month in which the debit note is included in the return in FORM GSTR-6; (n) any input tax credit required to be reduced on account of issuance of a credit note to the Input Service Distributor by the supplier shall be apportioned to each recipient in the same ratio in which the input tax credit contained in the original invoice was distributed in terms of clause (f), and the amount so apportioned shall be- (i) reduced from the amount to be distributed in the month in wh....
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....ntitled to such credit and include the Input Service Distributor credit note and the Input Service Distributor invoice in the return in FORM GSTR-6 for the month in which such credit note and invoice was issued. Important Meaning related to rule 39, - * (i) "Relevant period" shall be- * (a) if the recipients of credit have turnover in their States or Union territories in the financial year preceding the year during which credit is to be distributed, the said financial year; or * (b) if some or all recipients of the credit do not have any turnover in their States or Union territories in the financial year preceding the year during which the credit is to be distributed, the last quarter for which details of such turnover of all the recipients are available, previous to the month during which credit is to be distributed; * (ii) "Recipient of credit" means the supplier of goods or services or both having the same Permanent Account Number as that of the Input Service Distributor; * (iii) ''Turnover'' in relation to any registered person engaged in the supply of taxable goods as well as goods not taxable under this Act, means the value of turnover, reduced....
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....the recipients to whom input tax credit is attributable, including the recipient(s) who are engaged in making exempt supply, or are otherwise not registered for any reason, shall be the amount, "C1", to be calculated by applying the following formula - C1 = (t1/T) x C where, "C" is the amount of credit to be distributed, "t1" is the turnover, as referred to in section 20, of person R1 during the relevant period, and "T" is the aggregate of the turnover, during the relevant period, of all recipients to whom the input service is attributable in accordance with the provisions of section 20; * The input tax credit on account of central tax and State tax or Union territory tax in respect of recipient located in the same state shall be distributed as central tax and State tax or Union territory tax respectively. * The input tax credit on account of central tax and State tax or Union territory tax shall, in respect of a recipient located in a State or Union territory other than that of the ISD, be distributed as integrated tax and the amount to be so distributed shall be equal to the aggregate of the amount of input tax credit of central tax and State tax or Union ....