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    Explain the term “Input Service Distributors” as per the provisions of GST law. Is an ISD required to obtain a separate GSTIN from the existing GSTIN within the same state?

    Answered 05-Aug-2022

    As per section 2(61) of the CGST Act 2017, Input Service Distributor is defined as an office meant to receive tax invoices on receipt of input services and further distribute ITC to supplier units proportionately. For example, suppose an entity “X Ltd” has operations in 10 states of the country and has obtained GST registration in each of state. X Ltd has purchased an ERP software (costing Rs. 10 lakhs + 1.8 lakhs GST) which is to be implemented at all locations. To distribute the ITC of Rs. 1.8 lakhs to all the locations proportionately, X Ltd is required to obtain a separate GSTIN as an ISD under the GST law

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