Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *   CBIC issues draft rules for Customs valuation *  Top Headlines: Threshold for Benami deals, green bond investors, and more *  Govt aims 1-hour clearance for goods at all ports *  Exporters Allowed To Use RoDTEP, RoSCTL Scrips To Pay Customs Duty, Transfer Them; Rules Amended *  Millions of labourers to be affected by brick producers’ strike over hike in GST, coal rates *  Inauguration of ‘kendriya GST parisar’ *  Transporter can seek Release of Conveyance alone, not Goods under GST Act: Madras HC *  GST: Quoting of DIN Mandatory for Responding to Notice, Govt Modifies Portal *  Firms can soon file claims for GST credits of ?400 cr *  CBIC issues modalities for filing transitional credit under GST. *  Mumbai: Man creates 36 fake GST firms, arrested for input tax credit fraud of Rs 23 cr *  Report to restructure Commerce Ministry under study; idea is to set up trade promotion body: Goyal *  Firms can soon file claims for GST credits of ?400 cr *  Gambling Alert! Govt May Levy Up To 28% GST; UP, Bengal Back Move *  EPFO backs raising retirement age to ease pressure on pension funds *  India Moving Up Power Scale, Set to Become Third Largest Economy By 2030 *  Airfares Get Expensive: What Changes for Flyers From Today? *  IRCTC Latest News: Passengers to Pay More For Cancelling Confirmed Rail Tickets Soon. *  IBC prevails over Customs Act, says Supreme Court. *  As GST enters sixth year, a time for evaluation and reassessment *  There’s GST on daily essentials as Centre needs money to buy MLAs: Arvind Kejriwal *  Now, GST on cancellation of confirmed train tickets, hotel bookings *  GST kitty for top States could rise 20% in FY23, says Crisil *  French customs officials seize another cargo vessel over Russia sanctions *  TradeLens builds on Asia momentum with Pakistan Customs deal *  Hike tax on tobacco, reduce affordability & increase revenue: Civil society organizations to GST council *  Bihar: ?10 crore tax evasion on tobacco products detected in raids *  Centre failed on GST, COVID; would it be anti-national? Rajan on Infosys row *  Service Tax not Chargeable on Income Tax TDS portion paid by recipient: CESTAT grants relief to TVS *  Foreign portfolio investors make net investment of Rs 7575cr in Sep so far
Subject News *  Run-up to Budget: Monetary threshold for GST offences may rise to Rs 25 cr *   GST (Tax) E-invoice Must For Businesses With Over Rs 5 Crore Annual Turnover *   Both Central GST and excise duty can be imposed on tobacco, rules Karnataka high court *   CBIC Issues Clarification On Extended Timelines For GST Compliance *   CBIC Issues Clarification On Extended Timelines For GST Compliance *  Budget 2023- 9.6 crore gas connections *  GST: Tamil Nadu Issues Instructions for Assessment and Adjudication Proceedings *  GST: CBIC Extends Last Date for filing of ITC *  GST collection in September surpasses Rs 1.4 lakh crore for straight seventh time *  Dollar smuggling case: Customs chargesheet names M Sivasankar as key conspirator. *  Hike in GST rates fuels inflation *  Assam: CBI arrests GST commissioner in Guwahati *  GST fraud worth ?824cr by 15 insurance Cos detected *  India proposes 15% customs duties on 22 items imported from UK *  Decriminalising certain offences under GST on cards *  Surge in GST collections more due to higher inflation: India Ratings *  MNRE Notifies BCD and Hike in GST Rates as ‘Change in Law’ Events But With a Condition | Mercom India *   Solar projects awarded before customs duty change allowed cost pass-through *  Rajasthan High Court Dismisses Writ Petitions Challenging Levy Of GST On Royalty *   GST revenue in September likely at Rs 1.45 lakh crore *  Govt working on decriminalising certain offences under GST, lower compounding charge *  Building an institution like GST Council takes time, trashing is easy: Sitharaman *  GST collections in Sept may touch ?1.5 lakh crore *  KTR asks Centre to withdraw GST on handlooms *  After Gameskraft, More Online Gaming Startups To Receive GST Tax Claims *  Madras HC: AAR Application Filed Under VAT Does Not Survive After GST Enactment *  Threshold for criminal offences under GST law may be raised *  Bengaluru: Gaming company faces biggest GST notice of Rs 21,000 crore *  CBIC clarifies Classification of Cranes for GST, Customs Duty *  Customs seize gold hidden in bicycle in Kerala airport  

Comments

Print   |    |  Comment

GST Update 27.10.2016

FAQ ON CHAPTER 11 RELATING TO INPUT SERVICE DISTRIBUTOR

GST DAILY DOSE OF UPDATION:-
 
FAQ ON CHAPTER 11 RELATING TO INPUT SERVICE DISTRIBUTOR:- This update covers clarifications issued in FAQs relating to input service distributor.
 

Question no. 1:-This clarifies the meaning of ISD. ISD means an office of supplier of goods/services which receives tax invoices towards receipt of input services and issues tax invoice or such other document as prescribed for distributing the credit of CGST/SGST/IGST paid on said services to supplier of taxable goods/services having same PAN as that of the office referred to above. For the purpose of distributing credit, ISD is deemed as supplier of services.
 

Question no. 2:- An ISD is required to obtain registration as a deemed supplier of services. The threshold limit of registration is not applicable to ISD. The registration of ISD under the existing regime would not be migrated in GST regime. All the existing ISDs will be required to obtain fresh registrations under new regime in case they want to operate as an ISD.
 

Question no. 3:-This speaks about the conditions for distribution of credit as follows:-
1.     Credit should be distributed through tax invoice or other document as prescribed;
2.     Amount of credit distributed should not exceed the amount of credit available;
3.     Credit should be distributed only to such suppliers to whom such services are attributable;
4.     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.    
The conditions for credit distribution by ISD are similar to the provisions presently in force.
 
Question no. 4:-This states that ISD is required to file monthly return by 13th of the following month in Form GSTR-6. At present, ISD is required to file half yearly return as normal service tax assessees whereas under GST, there will be separate return to be filed monthly. This will definitely increase the compliance cost of ISD.
 
Question no. 5:-This clarifies that different offices like marketing division, security division etc. may apply for separate ISD. However, obtaining separate ISD registration will lead to filing of separate monthly returns for each registration thereby increasing compliance.
 
Question no. 6:-This clarifies that appropriate provisions have been incorporated in the Model GST Law for recovery of excess/wrongly distributed credit by ISD. The recovery can be made initiating action against ISD or against the recipient of credit. The government has ensured adequate safeguards against wrong distribution of credit by ISD as recovery can be made from ISD or recipient of credit.
 
Question no. 8:-The role of ISD in distributing credit to units located in different States is very significant in GST regime. ISD can distribute SGST credit as IGST for units located in different States. This is for the reason that SGST credit is State specific and may not be useful for units located in different State.
 
We will carry some other questions in our next update.
 
You may also visit our FB page at the following link
 
https://www.facebook.com/GSTTODAYBYPRADEEPJAIN/
 

Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com