Home List Manuals GSTGST Ready ReckonerImportant Definitions, terms, meaning and Scope This
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Input Service Distributor - GST Ready Reckoner - GSTExtract Input Service Distributor means an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office. New definition of Input Service Distributor as proposed in the Finance Bill, 2024 Input Service Distributor means an office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9 , for or on behalf of distinct persons referred to in section 25 , and liable to distribute the input tax credit in respect of such invoices in the manner provided in section 20 ; Analysis of new proposed Definition The scope of what constitutes an Input Service Distributor by: Including tax invoices received for services liable to tax under reverse charge mechanism (RCM) as per sub-section (3) or (4) of section 9 . Emphasizing the role of the ISD in receiving invoices on behalf of distinct persons referred to in section 25 , which expands the operational scope beyond just the services received directly by the office. Maintaining the requirement to distribute input tax credit (ITC) but implying changes in the method of distribution as per modifications to section 20 . The amendment shall come into effect from date to notified after enactment of Finance Bill, 2024 .
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