GST related query........

Input service distributor is required follow 105% itc rule for itc distribution(GSTR 6)?
Replies (2)
Quick Summary
This discussion clarifies whether the 105% Input Tax Credit (ITC) rule applies to Input Service Distributors (ISDs) filing GSTR-6. It confirms that ISDs do not follow the 105% rule for ITC distribution. Instead, a different formula is used specifically for ISDs, while the 105% rule is generally applicable for taxpayers claiming ITC.

No, ISD cannot follow 105% of ITC. There is another formula for ITC for ISD

105% Rule apply in all cases where tax payer is claiming ITC. 

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