Input Service Distributor ISD Changes Applicable from 1st April 2025

Original Section 2(61) of CGST Act

Input Service Distributor

Input Service Distributor” means an office of the supplier of goods or

services or both which receives tax invoices issued under section 31 towards the

receipt of input services and issues a prescribed document for the purposes of

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 Permanent Account Number as that of the said office;

CBIC Circular No 199/11/2023 GST Dated 17-07-2023

Multiple ISD Registrations were also allowed FAQ on GST Chapter 3 Q No 32 issued by CBIC on 15-12-2018

ISD Provisions are now mandatory

Amended by Finance Act 2024 applicable from 1^st April 2025:-

Section 2(61) “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,

including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9,

for or on behalf of distinct person referred to in section 25,

and liable to distribute the input tax credit in respect of such invoices in the manner provided in section 20;

Monthly Return by ISD

ISD has to file monthly return by thirteenth of following month Section 39(4) of CGST Act

Monthly return is not required if there is no transaction during a month- Section 39(8) of CGST Act read with section 39(4) and 39(1) of CGST Act.

Section 20 of CGST Act

https://carahulgupta.com/blogs/Section%2020-CGST-Act-Manner-of-distribution-of-credit-by-Input-Service-Distributor-GST-Updatet

Rule 39 of CGST Rules

https://carahulgupta.com/blogs/rule39-cgst-rules-distribution-itc-by-isd-input-service-distributor