Mystery itc

it willl serve no purpose

the tax paid on rent is related to corporate office and not to branches.

so ISD will servce no purpose.

Though there is no direct nexus between rent of the the corporate office and branches/factories/godowns, but there is an indirect nexus since without branches/factories/godowns(revenue generating unit) there will be no corporate office. Thus we can say that corporate office is bearing this rent to make all the branches/factories/godowns functional and to generate revenue and therefore the credit paid on rent is attributable to all the branches/factories on pro-rata basis. 

Concl: Corporate office should take registration as ISD and distribute it to the branches/factories/godowns.

shivam

koi gadbad to nahi hogi na if i do that

regards

shivani

shivam

consider following

A CA registered in Delhi goes to Mumbai for official work, where he stays in a hotel.

now hotel is going to charge CGST and SGST even if CA gives his Delhi GSTIN as place of supply is Mumbai.

Now CA cant take credit of CGST and SGST paid to hotel against his output CGST and SGST in Delhi.

so can CA take registration as ISD in Maharashtra and get invoice issued on his Maharashtra GSTIN ISD and transfer credit to Delhi.

Can he do that?

wont this defeat the basic principle that GST is a destination based tax?

ALso in my corporate office example case, rental service are consumed in Delhi but u r transferring its credit to all over india branches.

dont u think ISD registration is only in those cases where the purpose is to distribute credit in respect of those services only which are consumed in branches but the billing is done on corporate office.

regards

shivani

Nai hoga! Aur hua bhi toh we have got a valid point.

1) “Input Service Distributor” means an office.....

In the 1st line of the definition of ISD itself the CA is debarred from taking registration in Mumbai. 

2) 2nd question is good question, so will have to think on it when I am free.

hanji shivam ji

free nahi huye aap

the query is important  to me

Ho gaye ji !

See what I believe is that since GST is a destination based tax so revenue of SGST 'ordinarily' accrues to the consuming state, but there is no hard and fast rule that it should accrue to the consuming state only, otherwise there should have been some provision in law. 

No doubt you have got a valid point, but I think you can take the credit and distribute it. We will be able to convince the department by saying "No corporate office if no revenue generating unit, so there is an indirect nexus and hence the credit is attributable on pro-rata basis".

dont agree with u shivam

you say there is no provision in law that gst revenue should accrue to the consuming state only which is totally wrong.

place of supply sections in respect of goods and services are specifically framed to see where the supply gets consumed. 

i dont think we can just deny Delhi (where corprate office is situated) of its legitimate revenue and pass it on to other states which has not anything to do with it.

in my view only common services related to branches for which  billing is made to corproate office can be distributed by corporate office by taking registration as ISD.

GST is different from Service Tax. In service tax entire revenue went to Central Governement but in GST each state will protect its share of revenue tooth and nail.

regards

Agreed, POS provisions are designed in such a way that revenue is generated for consuming state only, but this is not always true(see section 12(5)(a)/12(8)(a)...) and also  in my view is nowhere it is written that after accruing to consuming state it cannot be transferred by ISD.

Logically you are correct if you don't want to distribute you may not ! and may be tommorow or after that Govt. may clarify this  but if anyone ask me at this moment then I would suggest to distribute since there is no specific exclusion in law.