Amendment to Definition of "Input Service Distributor" in Section 2 of the Central Goods and Services Tax Act, 2017
The Central Goods and Services Tax Act, 2017 has been amended to update the definition of "Input Service Distributor" in Section 2. The revised clause describes an Input Service Distributor as an office of a supplier of goods or services that receives tax invoices for input services. This includes invoices for services that are subject to tax under specific sub-sections of Section 9. The Input Service Distributor is responsible for distributing the input tax credit associated with these invoices on behalf of distinct persons as identified in Section 25. The distribution of this input tax credit must be executed in accordance with the procedures set out in Section 20 of the Act. This amendment clarifies the role and responsibilities of an Input Service Distributor in the context of the Goods and Services Tax framework.
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Amendment of section 2.
11. In the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the Central Goods and Services Tax Act), in section 2, for clause (61), the following clause shall be substituted, namely:––
‘(61) “Input Service Distributor” means an office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25, and liable to distribute the input tax credit in respect of such invoices in the manner provided in section 20;’.
