- Cascading tax effect (meaning tax on tax) will no longer exist
- Input Tax Credit will be easier to avail
- Returns and compliances will be consolidated
- Increased efficiency in Logistics
- Subsumes variety of Indirect Taxes
- Higher threshold for Registration
- Composition scheme for smaller businesses
- Online simpler procedure
- Regulating the unorganised sector
Introduction : Input Service Distributor (ISD) means an office of the supplier of goods or services or both which receives tax invoices towards receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax (CGST), State tax (SGST)/ Union territory tax (UTGST) or integrated tax (IGST) paid on the said services to a supplier of taxable goods or services or both having same PAN as that of the ISD. It is important to note that the ISD mechanism is meant only for distributing the credit on common invoices pertaining to input services only and not goods (inputs or capital goods). Companies may have their head office at one place and units at other places which may be registered separately. The Head Office would be procuring certain services which would be for common utilization of all units across the country. The bills for such expenses would be raised on the Head Office. But the Head Office itself would not be providing any out...
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