Insight on ISD under GST regime :
| Point of Difference | GST Regime |
| 1. Who can be Input service distributor? | An office of the supplier of goods and/or services |
| 2. Document based on which credit can be distributed | Receives tax invoices issued by supplier towards receipt of input services |
| 3. How to distribute credit? | By issuing an ISD invoice for the purposes of distributing to a supplier of taxable goods and/or services having the same PAN as that of the office referred to above |
| 4. Type of tax credit that can be distributed | The credit of CGST (SGST in State Acts) and/or IGST paid on the said services |
| 5. To whom can it be distributed? | To supplier having the same PAN. i.e., credit cannot be distributed to outsourced manufacturers or service providers. |
Thus, on looking into the highlighted differences between the two regimes, distribution of credit is restricted to office having the same PAN. The reason could be due to the shift of taxable event from manufacture to supply. The tax liability would arise at the time of supply which would be ultimately paid by ISD on the utilization of available input tax credit.