GST India Forum – Goods and Services Tax (GST) in India › Forums › Bare Law › Sec 20 – Manner of distribution of credit by Input Service Distributor
- CA Ashish BadalaModeratorApril 14, 2017 at 11:53 AMPost count: 184Topics: 181
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(1) The Input Service Distributor shall distribute the credit of central tax as central tax or integrated tax and integrated tax as integrated tax or central tax, by way of issue of a document containing the amount of input tax credit being distributed in such manner as may be prescribed.
(2) The Input Service Distributor may distribute the credit subject to the following conditions, namely:–
(a) the credit can be distributed to the recipients of credit against a document containing such details as may be prescribed;
(b) the amount of the credit distributed shall not exceed the amount of credit available for distribution;
(c) the credit of tax paid on input services attributable to a recipient of credit shall be distributed only to that recipient;
(d) the credit of tax paid on input services attributable to more than one recipient of credit shall be distributed amongst such recipients to whom the input service is attributable and such distribution shall be pro rata on the basis of the turnover in a State or turnover in a Union territory of such recipient, during the relevant period, to the aggregate of the turnover of all such recipients to whom such input service is attributable and which are operational in the current year, during the said relevant period;
(e) the credit of tax paid on input services attributable to all recipients of credit shall be distributed amongst such recipients and such distribution shall be pro rata on the basis of the turnover in a State or turnover in a Union territory of such recipient, during the relevant period, to the aggregate of the turnover of all recipients and which are operational in the current year, during the said relevant period.
Explanation.–For the purposes of this section,–
(a) the “relevant period” shall be–
(i) if the recipients of credit have turnover in their States or Union territories in the financial year preceding the year during which credit is to be distributed, the said financial year; or
(ii) if some or all recipients of the credit do not have any turnover in their States or Union territories in the financial year preceding the year during which the credit is to be distributed, the last quarter for which details of such turnover of all the recipients are available, previous to the month during which credit is to be distributed;
(b) the expression “recipient of credit” means the supplier of goods or services or both having the same Permanent Account Number as that of the Input Service Distributor;
(c) the term ”turnover”, in relation to any registered person engaged in the supply of taxable goods as well as goods not taxable under this Act, means the value of turnover, reduced by the amount of any duty or tax levied under entry 84 of List I of the Seventh Schedule to the Constitution and entries 51 and 54 of List II of the said Schedule.Priya MadrechaModeratorMay 23, 2017 at 12:14 PMPost count: 280Topics: 4
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This Section sets forth the way input tax credit (of services) is distributed to supplier of goods or services or both of same entity having same PAN. Procedure for distribution is given in Rule 4 of Input Tax Credit Rules.
(i) An ISD shall distribute the eligible ITC in accordance with Rule 4 elucidated in the following paras.
(ii) Input Service Distributor (ISD) is an office of the supplier of goods or services or both where a document (like invoice) of services attributable to other locations are received (since they might be registered separately). Since the services relate to other locations the corresponding credit should be transferred to such locations (having separate registrations) as services are supplied from there. Care should be taken to ensure that an inter-branch supply of services should not be misinterpreted as a distribution by ISD. Please recollect that ISD cannot be an office that does any supply of its own but must be one that merely collects invoice for services and issues prescribed document for its distribution.
Examples hereunder are as per rules.
Illustration: Corporate office of XYZ company Ltd., is at New Delhi, having its business locations of selling and servicing of goods at New Delhi, Chennai, Mumbai and Kolkata. For example, if the software license and maintenance is used at all the locations, invoice indicating CGST and SGST is received at Corporate Office. Since the software is used at all the four locations, the input tax credit of entire services cannot be claimed at New Delhi. The same has to be distributed to all four locations. For that reason, the Delhi Corporate office has to act as ISD to distribute the credit.
Illustration (Rule 4):
Rule 4: Input Tax Credit Rules, 2017
The example Provided below illustrates the application of Rule 4 of the Input Tax Credit Rules for distribution of credits by an Input Service Distributor (ISD) in terms of Section 20.
Yoko Infotech Ltd. has its head office in Mumbai, for which it additionally has an ISD registration. The company has 12 units across India including its head office. It receives the following invoices in the name of the ISD at Mumbai, for the month of January 2018:
Invoice A: Rs. 100,000 @ IGST 18,000 issued by Peace Link Technologies (registered in Uttar Pradesh) for repairs executed in 2 units – Bangalore, Kolkata, Gurgaon (Note: Gurgaon location is not registered as it is engaged in making only exempt supplies);
Invoice B: Rs. 300,000 @ CGST 27,000, SGST 27,000 issued by M/s. Tec Force (registered in Pune) for repairs executed in 3 units – Mumbai, Bangalore, Kolkata;
Invoice C: Rs. 500,000 @ IGST 90,000 issued by M/s.Georgia Marketing (registered in Bangalore) for marketing services for the company as a whole;
Invoice D: Rs. 10,000 @ CGST 900 & SGST Rs.900 issued by M/s.Gopal Coffee works (registered in Mumbai) for supply of beverages during the month to its Mumbai unit.
All taxes have been considered at 18% (CGST and SGST at 9% each).
The turnover of each of the units during the year 2016-17 is: Mumbai: 1 crore; Bangalore 2 crore; Kolkata 1 crore; Gurgaon 2 crore; each of the other 8 units: 50 lakhs, resulting in the aggregate turnover of the company in the previous financial year, of 10 crores.
Distribution of credits by the ISD:
Particulars Invoice Bangalore Kolkata Mumbai Gurgaon 8 units Total
T/o in State Note 1 2 crore 1 crore – 2 crore – 5 crore
Pro-rata ratio 40% 20% – 40% – 100%
Credit 18,000 7,200 3,600 – 7,200 – 18,000
Type IGST IGST IGST – IGST –
T/o in State Note 2 2 crore 1 crore 1 crore – – 4 crore
Pro-rata 50% 25% 25% – – 100%
CGST Credit 27,000
• Distribution 13,500 6,750 6,750 – – 27,000
Type CGST IGST IGST CGST – –
SGST Credit 27,000
• Distribution 13,500 6,750 6,750 – – 27,000
Type SGST IGST IGST SGST – –
T/o in State Note 3 2 crore 1 crore 1 crore 2 crore 0.5 * 8 crore 10 crore
Pro-rata ratio 20% 10% 10% 20% 5% * 8 units 100%
Credit 90,000 18,000 9,000 9,000 18,000 4,500 * 8 units 90,000
Type IGST IGST IGST IGST IGST IGST
Attributable to Note 4 – – Yes – – –
(ineligible) 900 – – 900 – – 900
Type CGST – – CGST – –
(ineligible) 900 – – 900 – – 900
Type SGST – – SGST – –
Credit of CGST,
SGST and IGST on invoice Total eligible credits distributed as CGST, SGST and IGST as applicable
(Refer Note below)
CGST 27,000 – – 6,750 – – 6,750
SGST 27,000 – – 6,750 – – 6,750
IGST 108,000 52,200 26,100 9,000 25,200 4,500 each
(viz. total of 36,000) 148,500
TOTAL 162,000 52,200 26,100 22,500 25,200 36,000 162,000
It can be seen from the illustration that credit of CGST of Rs. 27,000 is distributed as CGST credit only to the extent of Rs. 6,750; likewise, credit of SGST of Rs. 27,000 is distributed as SGST credit only to the extent of Rs. 6,750. This is because, the intra-State service billed to the ISD is attributable to 1 unit in the same State as the ISD and 2 other units located in different State. Thus, the balance of CGST credit and SGST credit is distributed as IGST to such units. This is the reason why the credit of IGST lying with the ISD prior to distribution is only Rs. 108,000 while the credit of IGST that is distributed aggregates to Rs. 148,500.
Note 1: The credit of IGST should always be distributed as IGST credit to all the units to which the service is attributable, regardless of where they are located.
• The credits should be distributed only to those units to which the service is attributable. Given that the service mentioned in the case of Invoice A is attributable only to Bangalore, Kolkata and Gurgaon, the entire input tax credit applicable to the case should be distributed to the said 3 units, on a pro rata basis in the ratio of their respective ‘Turnover in State’ to the aggregate of the 3 ‘Turnover in State’ (i.e., 2 Cr + 1Cr + 2 Cr). Further, no differentiation is made to whether the unit is registered or not, and therefore, credit attributable to the Gurgaon unit is distributed to that unit although it is not registered, which implies, it is a loss of credit.
• The ‘turnover in State’ is arrived at a value for the ‘relevant period’. Since all 12 units were operational during the preceding financial year, the relevant period would be the preceding financial year.
Note 2: The credit of CGST and SGST should be distributed as IGST credit to all the units located outside the State in which the ISD is located, and as CGST and SGST respectively, in case of distribution of credit to a unit located in the same State as the ISD. Thus, the CGST and SGST credits are distributed as IGST credits to Bangalore and Kolkata, and as CGST & SGST respectively, to Mumbai.
• Given that the service supplied in terms of Invoice B is attributable only to Bangalore, Kolkata and Mumbai, the entire input tax credit applicable to the case should be distributed to the said 3 units, on a pro rata basis in the ratio of their respective ‘Turnover in State’ to the aggregate of the 3 ‘Turnover in State’ (i.e., 2 Cr + 1Cr + 1 Cr).
Note 3: The credit of IGST is distributed as IGST credit to all the units to which the service is attributable.
• Invoice C relates to a supply of service that is attributable to all the units, and hence, the credits would be distributed on a pro-rata basis of the ‘Turnover in State’ of each of the units, to the aggregate of ‘Turnover in State’ of all the 12 units, i.e., Rs.10 Cr.;
• For convenience of presentation, only one column is shown to reflect the distribution to each of the 8 units, having the same ‘turnover in State’, and to which the same invoice is attributable.
Note 4: Given that the services for receipt of food and beverages would not be eligible input services, the taxes relating to Invoice D should be distributed as ineligible input tax (900 + 900), and the distribution must be done separately.
Since the service is wholly attributable to the Mumbai unit, the distribution is done only to such unit.
(iii) Distribution of credit where ISD and recipient are located in different States under CGST Act: As per Rule 4(1) (e) of ITC Rules ISD shall distribute as prescribed, credit of CGST as CGST or IGST and credit of IGST as IGST by issuing prescribed document mentioning the amount of credit distributed to recipient of credit located in different States.
Illustration: In the above illustration, if the corporate office of XYZ Ltd being an ISD situated in Delhi receives invoices indicating
4 lakhs of CGST in one service and7 lakhs as of IGST in another case. It shall distribute CGST of
4 Lakhs as CGST or as IGST and credit of IGST of7 Lakhs also as IGST to its locations at Chennai, Mumbai and Kolkata under a prescribed document containing the amount of credit distributed.
(iv) Distribution of credit where ISD and recipient are located in different States under SGST Act: ISD could distribute as prescribed credit of SGST as IGST only (and not as SGST of other State) by issuing a prescribed document containing the amount of credit distributed.
Illustration: In the above illustration, corporate office of XYZ Ltd., also received SGST of
6 Lakhs along with4 Lakhs of CGST. It can distribute SGST credit as IGST to its locations at Chennai, Mumbai and Kolkata under a prescribed document containing the amount of credit distributed.
(v) Distribution of credit where ISD and recipient are located within the State under CGST Act: In cases where an entity has different registration within the same State by an entity, it may have to distribute credit to such location also similar to locations with different registrations outside the State. In order to enable the same, it is Provided that ISD can distribute in the prescribed manner, credit of CGST as CGST and credit of IGST as IGST by issuing prescribed document mentioning the amount of credit distributed to recipient being a business vertical.
Illustration: ABC Ltd., having its office at Bangalore is having another business vertical in Mysore which is separately registered. In such a case out of input tax credit of ` 4 lakhs of CGST. The credit attributable to ABC Ltd, Bangalore, shall be distributed to Mysore location as CGST. Similarly out of input tax credit of Rs. 10 Lakh of IGST, the credit attributable to ABC Ltd, Banglore shall be distributed to Mysore location as IGST.
(vi) Distribution of credit where ISD and recipient are located within the State under SGST Act: Similar to the provisions of CGST as indicated supra under CGST Act, even under the SGST Act, it is Provided that an ISD can distribute in the prescribed manner, credit of SGST and IGST as SGST (of the same State and none other State) by issuing prescribed document mentioning the amount of credit distributed to recipient being a business vertical.
Illustration: In the same example of ABC Ltd., above the input tax credit say ` 6 lakhs of SGST shall be distributed as SGST.
(vii) Conditions to distribute credit by ISD: The conditions to distribute the credit by ISD are as follows:
(a) Credit to be distributed to recipient under prescribed documents containing prescribed details. Such document should be issued to each of the recipient of credit.
(b) Credit distributed should not exceed the credit available for distribution.
(c) Tax paid on input services used by a particular location (registered as supplier), is to be distributed only to that location.
(d) Credit of tax paid on input service used by more than one location who are operational is to be distributed to all of them based on the pro rata basis of turnover of each location in a State to aggregate turnover of all such locations who have used such services.
Note: The period to be considered for computation is the previous financial year of that location. If it does not have any turnover in the previous financial year, then previous quarter of the month to which the credit is being distributed.
(viii) For a detailed discussion on Tax invoice or Credit note to be issued by an ISD reference maybe made to Chapter VII. The said Chapter VII clearly indicates the particulars to be included in such a document.
Illustration 1: A Ltd as an ISD has input service credit of
35 lakhs used by more than one locations, to be distributed among recipients locations X, Y and Z. The turnover of X, Y, Z in preceding financial year, is10 crores,
15 crores and5 crores respectively. The credit of ` 5 lakhs pertains to input service received only by Z. The credit attributable to X, Y, Z are as follows:
Particulars Amount (in `)
Total Credit to be distributed as ISD 35 Lakhs
Credit of service used only by Z location 5 Lakhs
Credit available for distribution for all units 30 Lakhs
Credit distributable to X
10 crores / 30 crores * 30 Lakhs 10 Lakhs
Credit distributable to Y
15 crores /30 crores * 30 Lakhs 15 Lakhs
Credit distributable to Z
5 crores / 30 crores * 30 Lakhs 5 Lakhs
Credit directly attributable to Z 5 Lakhs 10 Lakhs
Illustration 2: Distribution of input tax credit by an ISD to its units is shown as under:
M/s XYZ Ltd, having its head Office at Delhi, is registered as ISD. It has three units in different State namely ‘Delhi’, ‘Jaipur’ and ‘Gujarat’ which are operational in the current year. M/s XYZ Ltd furnishes the following information for the month of July 2018 & asks to distribute the credit to various units.
(i) CGST paid on services used only for Delhi Unit:
300000/- (ii) IGST, CGST & SGST paid on services used for all units:1200000/- (iii) Total Turnover of the units for the Financial Year 2017-18 are as follows:-
Unit Turnover (`)
Solution: Computation of Input Tax Credit Distributed to various units: –
Available Delhi Jaipur Gujarat
Cre dit distributed to all Units
CGST paid on services used only for Delhi Unit. 300000 300000 0 0
IGST, CGST & SGST paid on services used in all units- Distribution on pro rata basis to all the units which are operational in the current year (Refer
Total 1500000 900000 360000 240000
Note 1: Credit distributed pro rata basis based on the turnover of all the units are as under: –
(a) Unit Delhi: (50000000/100000000)*1200000 = ` 600000
(b) Unit Jaipur: (30000000/100000000)*1200000 =
360000 (c) Unit Gujarat: (20000000/100000000)*1200000 =240000 Relevant period for distribution of credit:
(a) If the recipient of credit has turnover in their State in preceding financial year of the year in which credit is distributed – Such financial year.
(b) If some or all recipients do not have any turnover in their State in preceding financial year of the year in which credit is distributed – Last quarter for which details of such turnover of all the recipients are available, previous to the month during which credit is to be distributed.
The analysis of above provision in a pictorial form is summarised as follows:
Input Service Distributor – Sec. 20.
ITC is distributed to supplier of goods or services or both of same entity having the same PAN
Common Services used at for
Illustration 3: Consider an example where a Company has a Branch-M in Mumbai and a Branch-D in Delhi. This Company is also incorporated in Delhi. Branch-M incurs various expenses that are supply of services in Delhi where CGST-SGST is liable to be charged in Delhi by that supplier. Obviously, credit of this tax cannot be availed by Branch-D because the underlying expense is not ‘in relation to business’ of Branch-D because it is exclusively in relation to business of Branch-M. When credit cannot be claimed by Branch-D and Branch-M does not want to forego this credit, the option available is for Branch-M to obtain ISD registration in Delhi. Now, in exactly, the same manner, if Branch-M incurs expenses in Maharashtra (say in Nasik), the implications would be that credit not allowable to Branch-M for these supplies and Branch-D is eligible to obtain ISD registration in Maharashtra, if credit is not to be foregone.
From this example, the following questions arise for careful consideration:
(i) Is ISD registration required in ‘all but one’ States for a registered taxable person?
(All but one may all States/UT other than Home State) Yes. If tax charged by the supplier is not IGST but CGST-SGST of the host-State where supplies are taking place, then a registered taxable person would require ISD registration in each those host-States except home-State
(ii) Is ISD registration an entity-level office in a given State or is it a registered taxable persons-specific office in other States (outside the home State of that registered taxable person)?
Yes, ISD is an entity-level office because section 2(61) defines ISD as “….means an office of the supplier ….which receives tax invoice…..” It does not say it is an “office of the registered taxable person which receives tax invoice….”
(iii) Will ISD registration be required for each registered taxable person in ‘all but one’ States?
(All but one may all States/UT other than Home State) No. One entity-level ISD registration in all States will suffice for credit distribution requirement of all registered taxable persons having same PAN
(iv) Can an ISD distribute credit of taxes paid in that State alone (whether IGST or CGST-SGST) to registered taxable persons in all other States or only to that State for whose benefit the ISD registration was obtained? No, since ISD is an entity-level registration, one ISD in a State can distribute credit to all registered taxable persons in all other States having same PAN. Further, this ISD can also distribute credit to separately registered business verticals in that same State
(v) When GSTIN registration is obtained in one State, is there any need to also obtain ISD in the same State or is GSTIN and ISD registrations mutually exclusive in a given State? Yes, GSTIN registration does not permit distribution of credit. If taxes are paid that is not related to the business of that registered taxable person in that State, then for want of ‘nexus’, credit cannot be availed by him. And to save from loss of credit, ISD registration is the only option to distribute this credit whichever registered taxable person (called ‘recipient of credit’) satisfies this nexus test.
(vi) Can a Company who has independent operations in all 29 States and 2 UTs and is therefore registered in all 31 locations also be required to have 31 ISD registrations? Yes, absolutely. This is because each registered taxable person stated to be truly independent of other business (of registered taxable persons) and receives supplies in those host-States where CGST-SGST paid in those host-States is to be distributed to the relevant home-State
(vii) Is it possible, when GSTIN registration No, for the reasons stated in (vi) & (i) above,
is already available in any given State, for the Company to completely avoid ISD registration? it would not be possible to avoid ISD registration
(viii) If a Company, in order to avoid ISD compliances, decides to avoid ISD registration in every State where it is already having GSTIN registration? It is possible that a Company may consider the possibility doing so subject to legitimate credits which can be availed as an ISD
(ix) If a Company were to instruct all registered taxable persons in a State who may have credit loss in other States misdirect the suppliers into issuing tax invoice with GSTIN of that State? Yes, it is possible for a Company to misdirect a supplier. This supplier will only look for genuine GSTIN and similarity of name. It is not the supplier’s responsibility to examine
‘nexus’ while issuing tax invoice
(x) Is ISD registration, therefore, necessary in every State where this ‘nexus’ test cannot be fulfilled by each registered taxable person? Yes, as explained in (vii) above, ISD registration is necessary in every State where ‘nexus’ test is not fulfilled
(xi) Therefore, if multiple ISD registrations or GSTIN-plus-ISD registrations are unavoidable (as explained above), is there any solution to resolve this multiplicity of monthly and quarterly compliances? Yes, only if ‘nexus’ is established between the ‘no nexus’ supplies in a State and the registered taxable person in that same State. If no such ‘nexus’ exists, credit claim by registered taxable person becomes improper. If nexus is established, please examine valuation of inter-branch supply of services is as per proviso to Rule 2 or as per Rule 4 of Valuation Rules
ISD is not merely a matter of compliance but involves great revenue implications to a registered taxable person. Compliance will also not be nominal. So, this is yet another indicator that the business model that has been in place until now has reached end-of-life and a new model needs to be examined. Please consider the following example of a CA in practice with branches in 3 States where the facts are as follows:
Common facts for consideration:
Head office Maharashtra
Branch offices West Bengal and Delhi
Client base All 3 States
Skills based Distributed in all offices, based on the assignment, staff from all offices join to complete the assignment
Completion Sign-off only by Partners who are in Maharashtra and West Bengal
Business models and their comparison are as follows:
Criteria Under Current Law Under GST Law – A Under GST Law – B
registration Centralized at Mumbai All 3 branches All 3 branches
Billing to clients From all 3 offices From Mumbai only From all 3 offices
Internal billing None Branches issue tax invoice to HO at ‘cost plus 10%’ as per Rule 4 of Valuation Rules Every branch including HO to bill each other for their respective contribution on ‘revenue split’ or ‘proportion of contribution’ method
ST credit of branches Availed at Mumbai due
to centralized registration (ISD registration not required) Branches and HO avail input tax credit on tax invoices issued by
respective suppliers Branches and HO avail input tax credit on tax invoices issued by respective suppliers
including internal bills
ST credit at
HO Mumbai credits, entitylevel credits and branchspecific credits HO retains credit of all entity-level credits and also avails credit of tax invoice issued by
branches HO retains credit of all entity-level credits
Loss, cost or risk None IGST outflow on non-
credit costs included in valuation and 10% markup. Non-credit costs of branches are salaries, depreciation, etc. Nexus risk on credits:
• entity-level costs like audit fee
• central vendor bills like data-telecom, travel, etc.
Administrative challenge in assignment-level
Mitigation NA Branch to invoice HO on 30th in respect of clientlevel billings due on 1st of next month so that the incremental IGST outflow from HO to branches is recovered quickly GST does not impose any ‘one-to-one’ correlation of credits. Entity-level credit can be contended to be allowed in HO.
Assignment-level billing allocation left to each branch to self-regulate
There is no doubt that the above are not recommendations but case for comparative illustration regarding application of the law to a business and to highlight that it is impossible to continue the current business model in GST, at least in many sectors.
The illustrations considered in this section are matters to be considered for discussion/ deliberations only and are not views envisaged. The reader may or may not agree with the views in the discussion in this Chapter/section.
20.2 Comparative review
These provisions are similar to the provisions contained in the Rule 7 of CENVAT credit rules for distribution of credit of input service by an ISD.
It appears that the distribution of credit among the recipients prescribed in CENVAT credit Rules has been continued in proposed GST law. The conditions for distribution of credit for each recipient also appear to be continued as before.
20.3 Related provisions
Section 2(61) Definition of Input Service Distributor
Explanation to Section 20(2) Definition of relevant period.
Q1. Whether CGST and IGST credit can be distributed by ISD as IGST credit to units located in different States?
Ans. Yes. CGST credit can be distributed as IGST and IGST credit can be distributed as IGST by an ISD for the units located in different States.
Q2. Whether SGST credit can be distributed as IGST credit by an ISD to units located in different States?
Ans. Yes. ISD can distribute SGST credit as IGST for the units located in different States.
Q3. Whether the ISD can distribute the CGST and IGST Credit as CGST credit?
Ans. Yes. CGST and IGST credit can be distributed as CGST credit by an ISD.
Q4. Whether the SGST and IGST Credit can be distributed as SGST credit?
Ans. Yes. ISD can distribute SGST and IGST credit as SGST.
Q5. What are the conditions to be fulfilled by ISD to distribute the credit?
Ans. The conditions to be fulfilled by ISD to distribute credit are:
(a) Credit distributed to recipient under prescribed documents, which is issued to each of the recipient of credit.
(b) Credit distributed should not exceed the credit available for distribution.
(c) Tax paid on input services used by a particular location (registered as supplier), to be distributed only to that location.
(d) Credit of tax paid on input service used by more than one location who are operational is to be distributed to all of them based on the pro rata basis of turnover of each locations in a State to aggregate turnover of all such locations who have used such services.
Q6. What are the documents through which the credit can be distributed by ISD?
Ans. The document under which the credit can be distributed is yet to be prescribed. The act provides that the credit can be distributed only through prescribed document.
Q7. How to distribute common credit among all the units of a ISD?
Ans. The common credit used by all the units can be distributed by ISD on pro rata basis i.e.
based on the turnover of each unit to the aggregate turnover of all the units to which credit is distributed.
Q1. The ISD may distribute the CGST and IGST credit to recipient outside the State as_______ (a) IGST
Ans. (a) IGST
Q2. The ISD may distribute the CGST credit within the State as____
(d) Any of the above.
Ans. (b) CGST
Q3. According to the condition laid down for distribution of credit, ISD can distribute_____
(a) Credit in excess of credit available
(b) Only certain percentage of total credit available (c) Credit equal to the total credit available for distribution.
(d) All of the above.
Ans. (c) Credit equal to the total credit available for distribution.
Q4. The credit of tax paid on input service used by more than one supplier is ________
(a) Distributed among the suppliers who used such input service on pro rata basis of turnover in such State.
(b) Distributed equally among all the suppliers (c) Distributed only to one supplier.
(d) Cannot be distributed.
Ans. (a) Distributed among the suppliers who used such input service on pro rata basis of turnover in such State.
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