Section 2(61) of CGST Act - Definition of "input service distributor" under CGST Act
2(61).1 Definition of Input Service Distributor
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Section 2[1][(61) [Effective from 01-04-2025] “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 and invoices in respect of services liable to tax u/s 9(3) or (4) for or on behalf of distinct persons referred to in section 25, and liable to distribute the ITC in respect of such invoices in the manner provided in section 20;] |
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After amendments, ITC on services liable to tax on RCM basis is also covered. |
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ISD can be registered only for input services and not for inputs and capital goods. |
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ISD can distributes GST paid on input services to its other offices having same PAN by issue of prescribed documents. |
2(61).1.1 Definition of ISD effective upto 31-03-2025
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Section 2(61) “Input Service Distributor” means an office of the supplier of goods or services or both which receives tax invoices issued u/s 31 towards the receipt of input services and issues a prescribed document for 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 PAN as that of the said office. |
[1] Clause substituted by Section 11 of The Finance Act, 2024 dt. 15-02-2024 and made effective from 01-04-2025 by Notification No. 16/2024-Central Tax dt. 06-08-2024.
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