Facts for Prelims (FFP)
Source: India Budget
Context: The Finance Bill 2024 proposed an amendment for mandatory registration of Input Service Distributor (ISD) offices, which receive invoices for common input services.
What is an Input Service Distributor (ISD) under GST?
An input Service Distributor (ISD) is an office of a goods or services supplier that receives tax invoices for input services and issues a prescribed document to distribute the tax credit to branches with the same PAN. ISD is essential for businesses with multiple branches, ensuring proper distribution of Input Tax Credit (ITC) on common expenditures.
The ISD receives invoices for common services and instead of each branch dealing with these invoices separately, the ISD takes care of it centrally.
