Input Service Distributor (ISD)
Definition
A GST registration used by a head office to receive invoices for common input services and distribute the related input tax credit to the branches or units that actually use them. The ISD does not supply goods or services itself; it only allocates credit.
Common questions
Why would a business register as an ISD?
When services such as audit, advertising or software are billed centrally but benefit multiple GST registrations under the same PAN, ISD lets the credit be shared fairly across those units.
Related Terms in India GST
Letter of Undertaking (LUT)
A declaration filed by an exporter in India to make zero-rated supplies (exports or supplies to SEZs) without paying integrated GST upfront. It avoids blocking working capital in a tax that would otherwise have to be claimed back as a refund.
DRC-03
The form used to make a voluntary or prompted payment of GST — for example to settle a shortfall found during reconciliation, pay interest, or respond to a notice — outside the normal return. It records the payment and the reason against the taxpayer's ledger.
Electronic Cash Ledger
The online ledger on the GST portal that holds money a taxpayer has deposited to meet tax, interest, penalty and fee liabilities. Amounts move into it when challans are paid and out of it when liabilities are set off.
Electronic Credit Ledger
The online ledger on the GST portal that records a taxpayer's available input tax credit. Credit flows in from eligible purchases and is used to set off output tax liability, subject to the rules on the order of utilisation.
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