Question

What is the fundamental objective of the Input Service Distributor (IS

Q: Answer-What is the fundamental objective of the Input Service Distributor (ISD) mechanism in GST?

ISD is an office of the supplier of goods or services which receives tax invoices for input services and issues a prescribed document for distributing the credit of CGST, SGST, IGST, or UTGST to its branches.

D mechanism in GST?

A To collect GST from consumers on behalf of branches.

B To distribute Input Tax Credit (ITC) on inward "services" received by the Head Office to its branches.

C To allow branches to share their physical inventory with the Head Office.

D To consolidate the turnover of all branches for the purpose of the Composition Scheme. E) To pay tax on behalf of the branches under the Reverse Charge Mechanism.

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