Question 3 - What are the conditions/restrictions for distribution of credit? - FAQ on GST dated 21.9.2016 based on Draft Model GST

Q 3. What are the conditions/restrictions for distribution of credit? Ans. The distribution of credit would be done subject to the following conditions: a) Credit should be distributed through tax invoice or other document as prescribed; b) Amount of credit distributed should not exceed the amount of credit available; c). Credit should be distributed only to such suppliers to whom such services are attributable; d). Credit in respect of services attributable to more than one supplier should be distributed proportionately on the basis of turnover of respective supplier during the preceding financial year.