GST – GST FAQ 2nd Edition – June 2017 as Updated as on 1.1.2018 – 11 – Q 1. What is Input Service Distributor (ISD)? Ans. ISD means an office of the supplier of goods or services or both which 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) paid on the said services to a supplier of taxable goods or services or both having same PAN as that of the ISD. Q 2. What are the requirements for registration as ISD? Ans. An ISD is required to obtain a separate registration even though it may be separately registered. 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 registration under new regime in case they want to operate as an ISD. Q 3. Wha
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ts only. Thirdly, distribution would be done in the ratio of turnover in a State or Union territory of the recipient during the period to the aggregate of all recipients to whom input service being distributed is attributable. Lastly, the credit distributed should not exceed the credit available for distribution. Q 6. What does the turnover used for ISD cover? Ans. The turnover for the purpose of ISD does not include any duty or tax levied under entry 84 of List I and entry 51 and 54 of List II of the Seventh Schedule to the Constitution. Q 7. Is the ISD required to file return? Ans. Yes, ISD is required to file monthly return by 13th of the following month in form GSTR-6. Q 8. Can a company have multiple ISD? Ans. Yes, different offices like marketing division, security division etc. may apply for separate ISD. Q 9. What are the provisions for recovery of excess/wrongly distributed credit by ISD? Ans. The excess/wrongly distributed credit can be recovered from the recipients of credit
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ong all the recipients of an ISD? Ans. The common credit used by all the recipients can be distributed by ISD on pro rata basis i.e. based on the turnover of each recipient to the aggregate turnover of all the recipients to which credit is distributed. Q 15. The ISD may distribute the CGST and IGST credit to recipient outside the State as_______ (a) IGST (b) CGST (c) SGST Ans. (a) IGST. Q 16. The ISD may distribute the CGST credit within the State as____ (a) IGST (b) CGST (c) SGST (d) Any of the above. Ans. (b) CGST. Q 17. The credit of tax paid on input service used by more than one supplier is ________ (a) Distributed among the suppliers who used such input service on pro rata basis of turnover in such State. (b) Distributed equally among all the suppliers. (c) Distributed only to one supplier. (d) Cannot be distributed. Ans. (a) Distributed among the suppliers who used such input service on pro rata basis of turnover in such State. Q 18. Whether the excess credit distributed could b
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