TaxTMI 
TaxTMI 
Provision of ISD as per Act and Rules
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....rovision of ISD as per Act and Rules<br> Query (Issue) Started By: - CASUNIL BHANSALI Dated:- 12-2-2025 Last Reply Date:- 10-3-2025 Goods and Services Tax - GST<br>Got 2 Replies<br>GST<br>Section 20 provides that credit of integrated tax be distributed as "integrated tax or central tax". However, rule 39 of CGST Rules provides that "input tax credit on account of integrated tax shall be distribute....
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....d as input tax credit of integrated tax to every recipient.". Discripency in provision of Act and Rule Reply By Shilpi Jain: The Reply: Pls distribute it only as IGST. Reply By Yash Shah: The Reply: According to Section 20(3) of the CGST Act 2017, "The credit of central tax shall be distributed as central tax or integrated tax and integrated tax as integrated tax or central tax, by way o....
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....f issue of a document containing the amount of input tax credit, in such manner as may be prescribed." However, as per Rule 39(1)(i) of the CGST Rules 2017, "the input tax credit on account of integrated tax shall be distributed as input tax credit of integrated tax to every recipient" From a plain reading of Section 20(3) and Rule 39(1)(i), one may conclude that Rule 39(1)(i) is contradictory t....
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....o Section 20(3). However, there cannot be any negative effect on a registered person as the ITC of IGST can be utilized by that branch with respect to any of IGST, CGST, or SGST. Therefore, it is recommended that a registered person distribute credit as per Rule 39(1)(i) otherwise unnecessary litigation costs will arise.<br> Discussion Forum - Knowledge Sharing ....