26 Dec 2017, 09:18 — 3 min read
The concept of ISD
Who is an Input Service Distributor (ISD)?
ISD means an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office.
1. ISD office receives Tax Invoices of Common Input Services (not goods)
2. Multiple offices separately registered under GST for supply of Goods or Services or Both
3. All such places/ offices including ISD have a common PAN Number
4. ISD distributes the ITC on Common Services between its various offices using prescribed document
Registration of ISD
Procedure for Distribution of ITC by ISD
1. Input Tax Credit available during a month shall be distributed in the same month and details of the same are furnished in GSTR – 6
2. The ISD will issue an ISD Invoice, as prescribed under Rule 54(1) of the CGST Rules with clear indication that it is only issued for distribution of ITC
3. An ISD shall separately distribute both the amount of ineligible and eligible Input Tax Credit
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