Ans. As per Section 2(56) of MGL, ISD means an office of
the supplier of goods and / or services which receives tax
invoices issued under section 23 towards receipt of input
services and issues tax invoice or such other document as
prescribed for the purposes of distributing the credit of
CGST (SGST in State Acts) and / or IGST paid on the said
services to a supplier of taxable goods and / or services
having same PAN as that of the office referred to above.
For the purpose of distributing the credit, ISD is deemed as
supplier of services.
Ans. An ISD is required to obtain registration as a deemed
supplier of services [section 19 read with para 5(vii) of
Schedule III]. The threshold limit of registration is not
applicable to ISD. The registration of ISD under the existing
regime (i.e. under Service Tax) would not be migrated in
GST regime. All the existing ISDs will be required to obtain
fresh registrations under new regime in case they want to
operate as an ISD.
Ans. The distribution of credit would be done subject to
the following conditions:
a. Credit should be distributed through tax invoice or other document as prescribed;
b. Amount of credit distributed should not exceed the amount of credit available;
c. Credit should be distributed only to such suppliers to whom such services are attributable;
d. Credit in respect of services attributable to more than one supplier should be distributed proportionately on the basis of turnover of respective supplier during the preceding financial year.
Ans. Yes, as per Section 27(6) of MGL, ISD is required to
file monthly return by 13th of the following month in form
Ans. Yes, different offices like marketing division, security
division etc. may apply for separate ISD.
Ans. Sections 18(1) and 18(2) provide for recovery of
excess/wrongly distributed credit by initiating action
against the ISD itself or against the recipient of credit so
distributed under section 51 of the Model GST Law.
Ans. Yes, CGST credit can be distributed as IGST and IGST
credit can be distributed as IGST by an ISD for the units
located in different States (Section 17(1)).
Ans. Yes, an ISD can distribute SGST credit as IGST for the
units located in different States.(Section 17(2)
Ans. Yes, CGST and IGST credit can be distributed as CGST
credit by an ISD for the units located in same State.
Ans. Yes, ISD can distribute SGST and IGST credit for the units located in same State.
Ans. The document under which the credit can be
distributed is yet to be prescribed. The Act provides that
the credit can be distributed only through prescribed
Ans. The common credit used by all the units can be
distributed by ISD on pro rata basis i.e. based on the
turnover of each unit to the aggregate turnover of all the
units to which credit is distributed.
Ans. (a) IGST.
Ans. (b) CGST
Ans. (a) Distributed among the suppliers who used such
input service on pro rata basis of turnover in such State.
Ans. Yes, excess credit distributed could be recovered
along with interest from an ISD by the department.
Ans. The credit distributed in contravention of provisions of Act could be recovered from the unit to which it is distributed along with interest.