ISD in GST | ISD का full process जाने in 2025 |

Section 20 : Manner of distribution of credit by Input Service Distributor
1. Substituted (w.e.f. 01.04.2025) by s. 12 of The Finance (No. 8) Act, 2024.

(1) Any office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25, shall be required to be registered as Input Service Distributor under clause (viii) of section 24 and shall distribute the input tax credit in respect of such invoices.

ISD need to comply
S.20 R.W. per rule 39(1)

u Registration : Separate Registration

u Invoicing : Need to Issue ISD invoice for Distribution

u Return : GSTR 6 need to file on the basis of GSTR 6A in Same Month

u Max ITC to be Distributed : as Credit Availed in GSTR 6A

u Credit Note or Debit Note : same manner of as actual ITC distributed

Manner of Distribution

S.20 R.W. per rule 39(1)

u Distribution of ITC of Input Services to the Recipient for which specially input service received.

u Distribution of Common ITC of Input Services to all Recipient – (R/UR/Recipient making exempt supply)

u Distribution of Common ITC of Input Services to all Recipient – Previous year turnover or Preceding Qtr. Turnover ration

u Separately Distribution of eligible and ineligible ITC of Input services

Practical Aspects

u Registration : 1) Shall be Separate Registration 2) Multiple ISD Registration for a company having branches (having separate reg. under same PAN)

u Inform to Supplier (Third party of Input services) : required to mentioned ISD Reg. No.

u Circular -199/11/2023 : Common services for HO & Branch and issued invoice to H.O for that. H.O can distribute ITC

--- By ISD mechanism, or

--- Directly Issue Tax Invoice top Branch

Author

CA M.F. Khan

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