CMA Final · Indirect Tax Laws and Practice · Input Tax Credit
For ISD distribution, what is the 'relevant period' when some recipients of credit had no turnover in their State in the preceding financial year?
The relevant period is the last quarter, previous to the month of distribution, for which turnover details of all recipients are available. This applies when some or all recipients had no turnover in their State in the preceding financial year; otherwise that financial year is used.
- AThe last quarter for which details of turnover of all the recipients are available, previous to the month of distributionCorrect
- BThe preceding financial year of the ISD only
- CThe current month of distribution
- DThe immediately preceding calendar month
Explanation
If all recipients have turnover in the preceding financial year, that year is the relevant period. If some or all do not, the relevant period is the last quarter, before the month of distribution, for which turnover details of all recipients are available.
Did you get it right without looking?
One question tells you little. A timed set on Input Tax Credit shows your real accuracy, how long you take and where you lose marks.
More Input Tax Credit questions
- Under the ISD distribution procedure in the CGST Rules, 2017 (as amended w.e.f. 1 April 2025), which statement about distribution of input t…
- An ISD distributed credit to recipients A and B in the ratio 40:60 on an original invoice. The supplier later issues a credit note to the IS…
- In March 2027, an ISD distributes credit for the first time to recipients P and Q. P had turnover in its State in the preceding financial ye…
- An ISD distributed Rs 1,00,000 of credit from one invoice to recipients P and Q in the ratio 3:2. In a later month the supplier issues a cre…
- Which statement about the ISD's ineligible credit is correct under the distribution rule?
- An ISD distributes Rs 1,20,000 of credit on a common input service attributable to three recipients, X, Y and Z, using the relevant-period t…