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ISD Registration need

VeeRendra (F&A) (39 Points)

10 April 2025

Hello Sir,

As an LLP, we had GSTIN Delhi & UP. My revenue is exempt (trading plants), and taxable revenue is only 9%.

We had claimed ITC only on taxable items purchased, said invoice received unit-wise, GSTIN-wise. And no consolidated purchasing.

No ITC claim on services like contractor, security, insurance, advertising, etc. We had received a consolidated bill from the auditor such ITC also not claim.

Kindly help me with what I need for ISD registration in that case. Thanks.

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Money Money (433 Points)
Replied 10 April 2025

To register as an Input Service Distributor (ISD) under GST, especially given your scenario, here are the key requirements and steps you should consider:

### **Eligibility for ISD Registration**
1. **Multiple GSTINs under the same PAN**: Since you have GSTINs for both Delhi and UP, ISD registration is applicable.
2. **Centralized Input Services**: If your LLP receives input services (like auditing, security, etc.) at one location but needs to distribute the Input Tax Credit (ITC) to other branches, ISD registration is required.

### **Documents Required for ISD Registration**
1. **Business PAN**: Your LLP's Permanent Account Number.
2. **Proof of Business Incorporation**: Certificate of incorporation or LLP agreement.
3. **Principal Place of Business Proof**: Utility bill, rent agreement, or property tax receipt.
4. **Bank Account Details**: A copy of a canceled cheque or bank statement.
5. **Authorized Signatory Details**: ID proof, address proof, and photograph of the authorized signatory.
6. **Board Resolution or Authorization Letter**: Authorizing the signatory to act on behalf of the LLP.

### **Steps for ISD Registration**
1. **GST REG-01 Form**: Fill out this form and select the ISD status in Serial No. 14.
2. **Submit Online**: File the application on the GST portal.
3. **Verification**: The GST officer will verify the application and documents.
4. **GSTIN for ISD**: Once approved, you will receive a separate GSTIN for ISD purposes.

### **Key Points for Compliance**
- **ITC Distribution**: As an ISD, you can distribute ITC only for input services (not goods or capital goods) to your branches based on their turnover ratio.
- **Separate Records**: Maintain clear records of ITC distribution to avoid mismatches or penalties.
- **Mandatory Registration**: Starting April 1, 2025, ISD registration is mandatory for businesses with multiple GSTINs under the same PAN[](https://www.indiafilings.com/learn/mandatory-isd-registration-under-gst-from-1st-april-2025/ "1")[](https://www.caclubindia.com/articles/mandatory-isd-compliance-under-gst-from-april-1-2025-a-complete-guide-for-businesses-53243.asp "2").

Since you mentioned not claiming ITC on services like auditing, ISD registration will allow you to distribute such ITC proportionally to your branches. This can optimize your tax credit utilization.