Section 20 of CGST ACT Manner ofdistribution ofcredit byISD

(1) The Input Service Distributor shall distribute the credit of central tax as centraltax or integrated tax and integrated tax as integrated tax or central tax, by way of issue of adocument containing the amount of input tax credit being distributed in such manner as maybe prescribed.
(2) The Input Service Distributor may distribute the credit subject to the followingconditions, namely:

(a) the credit can be distributed to the recipients of credit against a documentcontaining such details as may be prescribed;

(b) the amount of the credit distributed shall not exceed the amount of creditavailable for distribution;

(c) the credit of tax paid on input services attributable to a recipient of credit shallbe distributed only to that recipient;

(d) the credit of tax paid on input services attributable to more than one recipientof credit shall be distributed amongst such recipients to whom the input service isattributable and such distribution shall be pro rata on the basis of the turnover in aState or turnover in a Union territory of such recipient, during the relevant period, tothe aggregate of the turnover of all such recipients to whom such input service isattributable and which are operational in the current year, during the said relevantperiod;

(e) the credit of tax paid on input services attributable to all recipients of creditshall be distributed amongst such recipients and such distribution shall be pro rata onthe 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 whichare operational in the current year, during the said relevant period.

Explanation.For the purposes of this section,

(a) the relevant period shall be

(i) if the recipients of credit have turnover in their States or Unionterritories in the financial year preceding the year during which credit is tobe distributed, the said financial year; or

(ii) if some or all recipients of the credit do not have any turnover intheir States or Union territories in the financial year preceding the yearduring which the credit is to be distributed, the last quarter for whichdetails of such turnover of all the recipients are available, previous to themonth during which credit is to be distributed;

(b) the expression recipient of credit means the supplier of goods orservices or both having the same Permanent Account Number as that of theInput Service Distributor;

(c) the term turnover, in relation to any registered person engaged inthe supply of taxable goods as well as goods not taxable under this Act, meansthe value of turnover, reduced by the amount of any duty or tax levied underentry 84 of List I of the Seventh Schedule to the Constitution and entries 51 and54 of List II of the said Schedule.

Section 20 of CGST ACT Manner ofdistribution ofcredit byISD
CHAPTER V
INPUT TAX CREDIT
Chapter V of the CGST Act,2017 covers six sections relating toINPUT TAX CREDIT.The following sections from the CGST Act,2017 are available for your ready reference.
Section 16Eligibility andconditions fortaking inputtax credit
Section 17 Apportionment of credit and blocked credits
Section 18 Availability ofcredit inspecialcircumstances
Section 19 Taking inputtax credit inrespect ofinputs andcapital goodssent for jobwork
Section 20 Manner ofdistribution ofcredit byInput ServiceDistributor
Section 21 Manner ofrecovery ofcreditdistributed inexcess