Manner of distribution of credit by Input Service Distributor :
The Input Service Distributor may distribute the credit as per following conditions – section 20(2) of CGST Act.
(a) the credit can be distributed against a prescribed document issued to each of the recipients of the credit so distributed, and such invoice or other document shall contain such details as may be prescribed.
(b) the amount of the credit distributed shall not exceed the amount of credit available for distribution.
(c) the credit of tax paid on input services attributable to a recipient shall be distributed only to that recipient.
(d) the credit of tax paid on input services attributable to more than one recipient of credit shall be distributed amongst such recipients to whom the input service is attributable and such distribution shall be pro rata on the basis of the turnover in a State or turnover in a Union territory of such
recipient, during the relevant period, to the aggregate of the turnover of all such recipients to whom such input service is attributable and which are operational in the current year, during the said relevant period.
(e) the credit of tax paid on input services attributable to all recipients of credit shall be distributed amongst such recipients and such distribution shall be pro rata on the basis of the turnover in a State or turnover in a Union territory of such recipient, during the relevant period, to the aggregate of the turnover of all recipients and which are operational in the current year, during the said relevant period.
Transitory provision for distribution of credit by Input service distributor of service invoices received after GST – Input service distributor can distribute credit in respect of services received prior to GST, even if invoices of such services were received after introduction of GST – section 140(7) of CGST Act.