{"id":166,"date":"2018-08-24T06:20:41","date_gmt":"2018-08-24T06:20:41","guid":{"rendered":"http:\/\/khannaandassociates.com\/blog\/?p=166"},"modified":"2018-08-24T06:20:41","modified_gmt":"2018-08-24T06:20:41","slug":"section-20-manner-of-distribution-of-credit-by-input-service-distributor-of-cgst-act-2017","status":"publish","type":"post","link":"https:\/\/khannaandassociates.com\/blog\/section-20-manner-of-distribution-of-credit-by-input-service-distributor-of-cgst-act-2017\/","title":{"rendered":"Section 20 – Manner of distribution of credit by Input Service Distributor of CGST ACT, 2017"},"content":{"rendered":"

Section 20 – Manner of distribution of credit by Input Service Distributor of CGST ACT, 2017<\/p>\n

    \n
  1. (1) The Input Service Distributor shall distribute the credit of central tax as central
    \ntax or integrated tax and integrated tax as integrated tax or central tax, by way of issue of a
    \ndocument containing the amount of input tax credit being distributed in such manner as may
    \nbe prescribed.
    \n(2) The Input Service Distributor may distribute the credit subject to the following
    \nconditions, namely:\u2013\u2013
    \n(a) the credit can be distributed to the recipients of credit against a document
    \ncontaining such details as may be prescribed;
    \n(b) the amount of the credit distributed shall not exceed the amount of credit
    \navailable for distribution;
    \n(c) the credit of tax paid on input services attributable to a recipient of credit shall
    \nbe distributed only to that recipient;
    \n(d) the credit of tax paid on input services attributable to more than one recipient
    \nof credit shall be distributed amongst such recipients to whom the input service is
    \nattributable and such distribution shall be pro rata on the basis of the turnover in a
    \nState or turnover in a Union territory of such recipient, during the relevant period, to
    \nthe aggregate of the turnover of all such recipients to whom such input service is
    \nattributable and which are operational in the current year, during the said relevant
    \nperiod;<\/li>\n<\/ol>\n

    (e) the credit of tax paid on input services attributable to all recipients of credit
    \nshall be distributed amongst such recipients and such distribution shall be pro rata on
    \nthe basis of the turnover in a State or turnover in a Union territory of such recipient,
    \nduring the relevant period, to the aggregate of the turnover of all recipients and which
    \nare operational in the current year, during the said relevant period.
    \nExplanation.\u2013\u2013For the purposes of this section,\u2013\u2013
    \n(a) the \u201crelevant period\u201d shall be\u2013\u2013
    \n(i) if the recipients of credit have turnover in their States or Union
    \nterritories in the financial year preceding the year during which credit is to
    \nbe distributed, the said financial year; or
    \n(ii) if some or all recipients of the credit do not have any turnover in
    \ntheir States or Union territories in the financial year preceding the year
    \nduring which the credit is to be distributed, the last quarter for which
    \ndetails of such turnover of all the recipients are available, previous to the
    \nmonth during which credit is to be distributed;
    \n(b) the expression \u201crecipient of credit\u201d means the supplier of goods or
    \nservices or both having the same Permanent Account Number as that of the
    \nInput Service Distributor;
    \n(c) the term \u2018\u2018turnover\u2019\u2019, in relation to any registered person engaged in
    \nthe supply of taxable goods as well as goods not taxable under this Act, means
    \nthe value of turnover, reduced by the amount of any duty or tax levied under
    \nentry 84 of List I of the Seventh Schedule to the Constitution and entries 51 and
    \n54 of List II of the said Schedule.<\/p>\n

     <\/p>\n

     <\/p>\n

    \u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

    Section 20 – Manner of distribution of credit by Input Service Distributor of CGST ACT, 2017 (1) The Input Service Distributor shall distribute the credit of central tax as central tax or integrated tax and integrated tax as integrated tax or central tax, by way of issue of a document containing the amount of input … Continue reading “Section 20 – Manner of distribution of credit by Input Service Distributor of CGST ACT, 2017”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"_links":{"self":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts\/166"}],"collection":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/comments?post=166"}],"version-history":[{"count":1,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts\/166\/revisions"}],"predecessor-version":[{"id":167,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts\/166\/revisions\/167"}],"wp:attachment":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/media?parent=166"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/categories?post=166"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/tags?post=166"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}