Co. need to obtain ISD GST if Co. is registered with GST authorities in more than one State

Savan Somani (General Manager Finance & Accounts)   (2 Points)

02 February 2024  

In the Budget 2024 Government has proposed changes in the GST law - which now require mandatory registration of Head Office, other office which receives invoices (relating to services) pertaining to office/factory/establishment located in multiple states - for the purpose of distribution of ITC involved in such invoices.


If any Company is registered with GST authorities in more than one State, that Company need to obtain GST registration as an Input Service Distributor –ISD GST No.


Common services received at the Head office - i.e. services received at Head Office which relate to the entire Company as a whole, Services received at branch/office/establishment located in other state, other than the head office, registered office, but invoices billed at head office like Audit Fees, Legal Charges, Branding expenses, annual software maintenance expense etc.


Company require to obtain ISD registrations at offices other than Head Office, in case, any office located in a State other than state in which Head Office is located, also receives invoices relating to common services used in more than one state.


The above would be applicable after the Finance Bill is passed, enacted and Notification issued for giving effect to the amendments.