Input Service Distributor under GST

What is Input Service Distributor under GST

 

In this article, the information about Input Service Distributor under GST is explained here.

ISD Ledger

Input Service Distributor under GST

The concept of Input Service Distributor (ISD) is provided in GST too. It is defined as 'an office of supplier of goods and/or services, which has received input services under the cover of tax invoice, and is allowed to distribute the said tax credit to the supplier of goods and/or services registered under the same PAN'. This indicates that the ISD is an office:

  • Which can be a head office, administrative office, corporate office, regional office, depot, and so on, belonging to registered taxable person who intends to distribute the credit
  • Which receives tax invoices towards the receipt of inward supply of services
  • Which distributes the tax credit paid of inward supplies of services to the branch units which have consumed the services, and issues invoices for the distribution of credit

Registration under GST

An ISD is required to obtain a separate registration. The registration is mandatory and there is no threshold limit for registration for an ISD. Businesses who are already registered as an ISD under the existing regime (i.e. under Service Tax), will be required obtain a new ISD registration under GST. This is because, the existing ISD registration will not be migrated to the GST regime.

Manner of Distribution

Under GST, on an intrastate transaction, CGST and SGST will be applicable. In case of transaction within a union territory, CGST and UTGST will be applicable. IGST will be applicable in case of interstate transactions and imports. The following are the scenarios of distribution of credit by an ISD:

  • ISD and the recipient of credit are located in the same state
  • ISD and the recipient of credit are located in different states

The unit to which the input tax credit is distributed is referred to as the 'recipient of credit'.

ISD and recipient of credit are located in the same state

When the ISD and recipient of credit are located in the same state/union territory, the input tax credit of IGST, CGST, SGST, and UTGST should be distributed to the recipient in the following

Return Forms under GST

Return Type

Frequency

Due Date

Details to be furnished

Form GSTR-6A

Monthly

0n 11th  of succeeding month

Details of inward supplies made available to the ISD recipient on the basis of FORM GSTR-1 furnished by the supplier

Form GSTR-6

Monthly

13th of succeeding month

Furnish the details of the input credit distributed

This post describes about Input Service Distributor under GST.   Comment below your thoughts about this post Input Service Distributor under GST.

 

 

 

 

Learn Exports Imports Free, Click here

Click here to know GST rate of your goods or service

Notice to GST return filing defaulters

When to file Annual Return of GST online?

Procedures to claim reduction in output tax liability of GST in India

Procedures to claim Input Tax Credit under GST in India

When to file first Return of GST tax in India?

GST Tax returns filing – Who, How and When?

How is time of supply accounted under GST Tax Calculation

Valuation of GST under special cases

Valuation of GST Taxable supply

When to pay GST for supply of services?

When to pay GST?

GST on short supplied goods and services by nature

Impact of GST on imports in India

Inter State supplies under GST

Meaning of Interstate dealer and seller

Inter State B2C Supply Means

Meaning of term Inter-State Goods and Service Tax (IGST) under GST

Inter and Intra State Level tax under GST

What is Integrated Tax under GST

Meaning of term Inspection and Search under GST

Seized Goods under GST

What is Provisional Assessment in Import formalities in India?

What is said to contain in Bill of Lading.

What is Said to weigh in Bill of Lading

What is second appraisement of import clearance procedures

What is self assessment in import customs clearance in India?

 What is SGS Inspection in Exports and Imports?

 What is shipment Advice and what are the contents of shipping advice

What is Shipper Load, stow and count in Bill of Lading

What is Test Report in Import clearance

What is Shut out in export trade

What is swift transfer in import and export trade.

How to export from India to Cambodia?

Documents required for Export from Cambodia

Customs procedures for Cambodia Export

Documents needed for Cambodia import

Import Customs processes in Cambodia

Import Registration and import Licence procedures in Cambodia

How to export from Burundi?

How to Import to Burundi?

How to import to India from Burundi?

How to export from India to Burundi?


Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers