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CMA Final · Indirect Tax Laws and Practice · Input Tax Credit

Under Rule 39 of the CGST Rules, 2017, an Input Service Distributor (ISD) has credit available for distribution in the month of August. Within which period must this credit be distributed, and where are the details furnished?

The ISD must distribute the credit available in a month in that same month, and the details are furnished in FORM GSTR-6. The rule does not allow deferral to a later month or quarter, nor reporting through GSTR-3B, GSTR-1 or the annual return.

  1. AIn the same month, with details furnished in FORM GSTR-6Correct
  2. BWithin the next quarter, with details furnished in FORM GSTR-3B
  3. CBefore the end of the financial year, with details furnished in FORM GSTR-9
  4. DWithin the following month, with details furnished in FORM GSTR-1

Explanation

Rule 39(1)(a) requires the credit available for distribution in a month to be distributed in the same month, and the details are furnished in FORM GSTR-6. The other periods and returns are not what the rule prescribes.

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