GST - ISD Registration

Dear Client,
Companies having a presence in multiple states and distributing common input tax credits with branch offices will have to register as Input Service Distributors (ISD) with GST authorities by April 1, 2025. Businesses having multi-state GST registration will have to have themselves mandatorily registered as ISD to distribute among its branches any input tax credit (ITC) for services availed. The mechanism for sharing of ITC is prescribed in GST rules and broadly the common ITC is apportioned in the ratio of turnover of different branches having the same PAN. As per Notification No. 16/2024 – CT dated 06-08-2024, the distribution of ITC and registration under the ISD mechanism are mandatory from 1st April 2025. GST is a branch of law or legislation, that eventually comes under the arena of Chartered Accountants and Tax Consultants who have expertise and in-depth knowledge on the subject and may guide you properly on the subject. Hence, it is advisable to consult with them for more precise clarification on the subject to navigate the issue in the right way.