Distribution of credits between registrations of same entity

In this blog, we look at a query on the distribution of credits on account of services attributable to more than one GST registration belonging to the same entity.



We have a significant amount of marketing expenses which we incur in Mumbai while most other services are billed to our head office in Noida. The marketing team in Mumbai cannot be moved to the head office for various reasons. How can we distribute the credits accumulating in both locations?



For distributing credits, the law carves out a provision for obtaining a registration as an Input Service Distributor (ISD). This ISD registration would be separate from the registration obtained for business purposes. Further, there is no restriction on the number of ISD registrations that a person can obtain. Therefore, in addition to registering Noida and Mumbai (and other locations from where taxable supplies are made), 2 ISD registrations – one in Noida and the other in Mumbai – can be obtained.


Legislative reference: Section 20 of the CGST Act, 2017

Authors: Meghana Belawadi and NR Badrinath


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