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Input service distribution

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This query is : Resolved

Kaustubh Ram Karandikar (Querist)

11 April 2019 As per GST authorities, GST credit on the services which are exclusively used by Head office (Maharashtra) cannot be distributed among factories outside Maharashtra as input service distribution. e.g. Rent of HO, security services at HO, printing and stationery etc. According to them, these credits have to be distributed only to Maharashtra normal registration. Since there is no activity in Maharashtra, we used to distribute these credits to factories in sales ratio earlier to other factories outside Maharashtra. Is the stand taken by authorities correct?

Arun Kumar Singh

Arun Kumar Singh (Expert)

12 April 2019 As a normal registered assessee cannot transfer the input tax credit to other state. The assessee is required to take ISD registration for transfer of input tax credit exclusively used by head office to other state of the same unit.

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