Input Service Distributor-ISD, Goods and Services Tax - GST

[k.lakshmipati rao]

Input Service Distributor [Section 2(61) of CGST Act,2017]- ISD.

Companies having Registered Office/Corporate Head office/Director’s office- [Office] premises shall get registered as ISD in general, as per the provisions of Section 24(viii) of CGST Act,2017.

Common Services [other than Goods]:- ISD- which receives Tax Invoices towards the receipt of input services, shall be distributed by ISD to respective branches or Units as per the provisions Section 20 (2) & (3) read with Rule 39.

Query-1: Whereas, If an office of ISD which receives Tax Invoices, (exclusively for its operations as ISD) towards the receipt of input on Goods, like Capital Goods [Computers/Printers/Office Equipment etc.,] and other materials like Stationery/Printing Material items etc., what could be the accounting treatment in the Company books of Accounts, with reference to GST element in the Tax Invoices meant for supply of Goods [being used by ISD].

• Does GST element should be added to the cost of Goods [Capital Goods and/or Other Goods/items] while accounting in the Company books of Accounts, since ineligible.