{"id":19993,"date":"2024-02-02T05:27:39","date_gmt":"2024-02-01T23:57:39","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=19993"},"modified":"2025-04-05T21:18:59","modified_gmt":"2025-04-05T15:48:59","slug":"isd-gst","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/isd-gst\/","title":{"rendered":"What is Input Service Distributor (ISD) under Goods and Services Tax (GST)?"},"content":{"rendered":"<h2>About Input Service Distributor (ISD)<\/h2>\n<ul>\n<li>ISD means\u00a0an office of the supplier of goods or services or both\u00a0which receives tax invoices towards receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax (CGST), State tax (SGST)\/ Union territory tax (UTGST), or integrated tax (IGST)\u00a0paid on the said services to a supplier of taxable goods or services or both\u00a0having the same Permanent Account Number\u00a0(PAN) as that of the ISD.<\/li>\n<li>Hence, ISD is a\u00a0business which receives invoices for services used by its branches.<\/li>\n<li>It\u00a0distributes the tax paid to such branches\u00a0on a proportional basis by issuing an ISD invoice.<\/li>\n<li>The\u00a0branches can have different\u00a0GST Identification Numbers (GSTINs)\u00a0but must have the same PAN as that of ISD.<\/li>\n<li>Registration under GST:\n<ul>\n<li>An ISD is required to obtain a\u00a0separate registration.<\/li>\n<li>Registration\u00a0is mandatory and there is\u00a0no threshold limit for registration for an ISD.\u00a0<\/li>\n<\/ul>\n<\/li>\n<li>Relevance of ISD:\n<ul>\n<li>It is relevant\u00a0for businesses having multiple branches operating within India.\u00a0<\/li>\n<li>These businesses are\u00a0required to obtain GSTIN for each branch from where taxable supplies are made.<\/li>\n<li>Based on the purchases of the head office or branch,\u00a0ITC (Input Tax Credit) in the form of SGST, CGST, or IGST\u00a0would accrue to the business.\u00a0<\/li>\n<li>To\u00a0ensure that the ITC is properly distributed\u00a0amongst the various branches of the business,\u00a0ISD concept\u00a0has been introduced by the Government.<\/li>\n<li>ISD is made\u00a0available to business having a large share of common expenditures,\u00a0and billing\/payment is done from a centralised location.\u00a0<\/li>\n<\/ul>\n<\/li>\n<li>Where ISD doesn\u2019t apply?\n<ul>\n<li>ISD mechanism is meant\u00a0only for distributing credit on common invoices\u00a0pertaining to input services.<\/li>\n<li>It is\u00a0not applicable when input or\u00a0capital goods are involved.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1) What is Permanent Account Number (PAN)?<\/h3>\n<p>Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, to any &#8220;person&#8221; who applies for it or to whom the department allots the number without an application. PAN enables the department to link all transactions of the &#8220;person&#8221; with the department. These transactions include tax payments, TDS\/TCS credits, returns of income, specified transactions, correspondence, and so on. PAN, thus, acts as an identifier for the &#8220;person&#8221; with the tax department.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.taxscan.in\/finance-bill-2024-know-proposed-manner-of-distribution-of-credit-by-input-service-distributor-under-gst\/370584\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>Finance Bill 2024: Know Proposed manner of Distribution of Credit by Input Service Distributor under GST<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Input Service Distributor is a business which receives invoices for services used by its branches and distributes the tax paid to such branches on a proportional basis by issuing an ISD invoice. <\/p>\n","protected":false},"author":5,"featured_media":19994,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-19993","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/19993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=19993"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/19993\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/19994"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=19993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=19993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=19993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}