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ISD Under GST

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Can anyone elaborate about ISD under GST along with example?
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Input Service Distributer is mechanism provide in GST, so that organization having number of branches and having common expenditures, and billing/payment done from a centralized location,can easily allocate ITC to various branches,

Common Expenditures eg, software exp, Security expenses, marketing expen,

so in this case company will get all the purchases and input tax credit under ISD registration, and then issue Tax invoice to each Branch as per usage from common expenses,
ISD cannot distribute the input tax credit :

  • paid on Inputs e.g Raw materials and capital goods e.g Machine purchased
  • to outsourced manufacturers or service providers./

CA Shubham Gupta
9968983550
 


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