What is concept of Input Service distributor under GST

Input Service Distributor under GST Model includes

• An office of the supplier of goods and / or services which
• receives tax invoices issued by supplier towards receipt of input services and/or goods and
• issues a prescribed document 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

ISD can distribute the ITC subject to these conditions:

• The credit can be distributed to the recipient of credit against a document.
• The amount of ITC distributed cannot exceed the amount of ITC available for distribution
• The ITC paid on Input service attributable to more than one recipient shall be distributed among such recipient on pro rate basis .
• The ITC paid on Input service attributable to all recipient shall be distributed amongst  uch recipient on pro rate basis .

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