Input Service Distributors (ISD) - Concept & Procedures

Rukmani Gupta Rukmani Gupta Dec 21, 2019 2591 0



 

Input Service Distributor (ISD) & Non-Resident Taxable Person in GST

  1. Who is Non-Resident Taxable Person in GST?
  2. Is there any threshold for Non-Resident taxable person in GST?
  3. How a Non-Resident Taxable person can take GST Registration?
  4. What is Input Service Distributor (ISD) in GST?
  5. Which Input cannot be distributed by Input Service Distributor (ISD) ?
  6. What is Input Service Distributor (ISD) invoice?
  7. If a taxpayer can obtain multiple Input Service Distributor (ISD) no. ?
  8. If Input Service Distributor (ISD)  is a separate registration from GST Registration?
  9. What are the compliances for Input Service Distributor in GST?

1. Who is Non-Resident Taxable Person in GST?

A person who does not have any fixed place of business or residence anywhere in India but makes supplies of taxable goods or services either regularly or casually will have to register in GST Act either directly or through his agent or representative.

2. Is there any threshold for Non-Resident taxable person in GST?

No there is no threshold defined for registering the Non Resident Taxable person in GST.

3. How a Non Resident Taxable person can take GST Registration?

Non Resident Taxable Person has to submit his application for registration in REG-09 along with his self-attested copy of passport, this can signed by digital signature or aadhar based EVC. He has to submit this application at least 5 days prior to commencement of his business.

4. What is Input Service Distributor (ISD) in GST?

Input service distributor is the taxable person who raises invoice to his own branch for the services which he has got taxable invoice but the service has been availed by his branches as well. For example in case  invoice of consultants who takes care of all the branches but raises his invoice only on head office, so head office will in turn raise the invoice as Input Service Distributor (ISD) to its branches proportionately and will claim the input against that payable. And branches will pay the GST to head office & claim input against their payables. That way input is distributed to the real user.

     

5. Which Input cannot be distributed by Input Service Distributor (ISD) ?

ISD cannot distribute input on raw material purchased, capital equipment purchased, or on outsourcing of manufacturing or services.

6. What is Input Service Distributor (ISD) invoice?

ISD invoice is a invoice issued by Input Service Distributor to his own branches to distribute the input credit & value of services as availed by them. This contains the details of branch along with its GSTIN , date & amount of credit.

7. If a taxpayer can obtain multiple Input Service Distributor (ISD) no. ?

Yes, a taxpayer can have more than one ISD nos for their different wings like Godown can have one, head office can have one etc.

8. If Input Service Distributor (ISD) is a separate registration from GST Registration?

Yes, For becoming ISD you have to be either separately register or has to indicate in initial registration form to be registered as ISD. 

9. What are the compliances for Input Service Distributor in GST?

Input Service Distributor (ISD) has to file a monthly return in form GSTR6 by 13th of next month.






 

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