Mandatory Registration under ISD, Goods and Services Tax - GST

[POOJA AGARWAL]

Dear Experts Please guide

A company has multiple GSTN under same PAN, and the invoices for commonly used services such as Audit, Subscriptions etc are received at head office.

Now, is it mandatory for the head office to allocate the expenses and the distribute the ITC in proportion of the turnover, or the same is optional?

Posts / Replies

[KASTURI SETHI]

It will be  mandatory w.e.f. 1.4.25.

[Shilpi Jain]

ISD would be mandatory from 1.4.25 the moment you have invoices related to common expenses received at one particular registration.

[KASTURI SETHI]

Yes as per proposed amendment in the Budget for 2025-26. Also see Section 20(2) of CGST Act read with Section 2(61).  Not optional as per facts detailed in the query.

Still to be enacted.