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What Is ISD (Input Service Distributor) Under GST?: CGST SGST

An input service distributor (ISD) is an office of a supplier that receives tax invoices for input services and distributes the input tax credit among supplier offices with the same PAN. The ISD distributes the ITC by issuing a document showing the credit amount to each recipient office. The ISD can only distribute ITC for input services received in the last quarter for which recipient turnover details are available. It must distribute the ITC for CGST, SGST, and IGST separately each month in FORM GSTR-6 and issue credit notes to adjust ITC amounts.

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126 views

What Is ISD (Input Service Distributor) Under GST?: CGST SGST

An input service distributor (ISD) is an office of a supplier that receives tax invoices for input services and distributes the input tax credit among supplier offices with the same PAN. The ISD distributes the ITC by issuing a document showing the credit amount to each recipient office. The ISD can only distribute ITC for input services received in the last quarter for which recipient turnover details are available. It must distribute the ITC for CGST, SGST, and IGST separately each month in FORM GSTR-6 and issue credit notes to adjust ITC amounts.

Uploaded by

nazeer syed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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What is ISD (Input Service Distributor) under GST?

“ Input service distributor (ISD) ” means an office of the supplier of goods and/or services,
which receives tax invoices issued towards receipt of input services or such other document as
prescribed for the purposes of distributing the credit of CGST, SGST.

Input Service Distributor(ISD) can be understanded diagramatically as:

An office of the Supplier which receives tax invoices towards the receipt of input services and
issues a document which distributes ITC paid on such services to a Supplier having the same
PAN as the Input service distributor office.

The Input service distributor shall distributes the ITC, by issuing a document containing the
amount of ITC being distributed.
ISD can distribute the ITC subject to these conditions:

RELEVANT PERIOD
 If the recipients have turnover in their States in the preceding financial year, then it
means the year during which credit is to be distributed, the financial year.
 If some or all recipients do not have any turnover in their States in the preceding financial
year, the year during which credit is to be distributed, then it means the last quarter for
which details of such turnover of all the recipients are available, preceding the month
during which credit is to be distributed.

PROCEDURE FOR DISTRIBUTION OF ITC BY ISD


 The ITC available for distribution in a month shall be distributed in the same month and
its details should be given in the FORM GSTR-6.

 The ISD must distribute the eligible and ineligible ITC amount separately.
 The ITC of CGST, SGST and IGST must be distributed separately.

CONCLUSION
If the amount of ITC distributed by an ISD is reduced later on, the procedure for reducing the
credit will be the same as for the reduction in case of credit note.

The Input service distributor must be on the basis of the ISD credit note, issue an ISD Invoice
to the recipient entitled to such credit and include them in the return in FORM GSTR-6 for the
month in which such credit note or invoice was issued.
In case you are confused about GST as a business owner, feel free to consult the GST experts at
LegalRaasta. You can get comprehensive assistance on GST Registration and GST Return
Filing. You can also use our GST software for doing end-to-end GST compliance.

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