ICAI Releases Revised Edition of its Handbook on Input Service Distributor Under GST

The Institute of Chartered Accountants of India (ICAI) has released the revised version of its Handbook on Input Service Distributor (ISD) under GST. This updated edition gives a clearer guide to the rules related to ISD, which is important in the distribution of input tax credits among different branches of business. The law in this edition is revised up to September 26, 2025.

The ISD system under GST helps businesses that are running across different states with the same PAN to distribute their ITC. Each separate branch across different states needs to be registered in its respective state. Even though the PAN is the same for all branches, the law sees them as distinct persons. ISD is a separate office, which cannot supply or raise invoices and is not a place of business. The main objective of ISD is to distribute ITC. It receives invoices for common services at a central location and then distributes the Input Tax Credit to its different branches.

With the new edition, ICAI aims at helping professionals, accountants, and businesses understand the ISD registration, credit distribution and compliance requirements. The handbook also contains illustrations, Frequently Asked Questions (FAQs), etc, for a more practical approach.