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CS Executive · Tax Laws and Practice · Input Tax Credit and Computation of GST Liability

Under Section 20 of the CGST Act, 2017 (as substituted w.e.f. 1 April 2025), an office of a supplier that receives tax invoices for input services on behalf of distinct persons and distributes the credit must be registered as which of the following?

The office must register as an Input Service Distributor. Section 20(1) requires an office receiving tax invoices for input services on behalf of distinct persons to obtain this registration and distribute the input tax credit on those invoices to them.

  1. ACasual taxable person
  2. BInput Service DistributorCorrect
  3. CComposition taxpayer
  4. DNon-resident taxable person

Explanation

Section 20(1) says such an office must be registered as an Input Service Distributor under clause (viii) of section 24 and must distribute the input tax credit on those invoices. The other categories are different registration types and have no role in distributing credit among distinct persons.

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