ISD helps distribute common input service ITC
Businesses with multiple GSTINs often receive common service invoices such as software, legal, audit, marketing or rent at head office. ISD registration and GSTR-6 help distribute eligible ITC to the right branches.
Situations this page is built for
- Multi-branch business with centralised services.
- Business shifting from cross-charge approach to ISD.
- New multi-location business setting up GST structure.
- Head office receives one invoice for services used by all branches.
Documents and details required
- All GSTINs of the legal entity.
- Common input service invoices.
- Allocation methodology such as turnover ratio.
- Existing ITC balance review.
- Accounting system and branch ledgers.
Process
Apply ISD registration
Use GST portal and correct entity details.
Receive invoices at ISD
Vendors should invoice the ISD GSTIN where appropriate.
Allocate ITC
Use proportionate methodology.
File GSTR-6
Monthly ISD return distributes credit.
Reconcile branches
Ensure recipient GSTIN claims distributed credit correctly.
Common mistakes
- Distributing without proportionate basis.
- Not filing GSTR-6 monthly.
- Using ISD for goods instead of services.
- Ignoring credit notes or reversals.
How to use this page safely
GST Input Service Distributor depends on the financial year, entity type, location, turnover, portal status, notice dates, transaction volume, documentation quality and whether past filings were done correctly.
Use this page as preparation guidance. Before filing, responding, registering, claiming or appealing, share exact forms, notices, portal screenshots, amounts, due dates and prior acknowledgements with a qualified professional.
A strong WorkIndex quote should state scope, assumptions, documents required, timeline, exclusions and whether follow-up, correction filing, reconciliation or notice-response support is included.
How to compare WorkIndex responses
- Ask whether the expert has handled this exact service type, industry and portal workflow before.
- Confirm whether the quote includes filing only, advisory only, or also reconciliation, correction, response drafting and follow-up.
- Prefer experts who ask for records before final pricing instead of quoting blindly.
- For urgent matters, include statutory deadline, notice/order date, current portal status and financial exposure.
- Keep acknowledgement, computation, challan, report, working papers and communication trail after completion.
Keep these ready before requesting quotes
- PAN, Aadhaar, GSTIN, TAN, DIN, CIN, LLPIN, UAN, DSC or registration number as applicable.
- Portal login access or screenshots from Income Tax, GST, MCA, EPFO, ESIC, ICEGATE, RERA or other relevant portals.
- Previous filings, acknowledgements, challans, certificates, orders, notices, audit reports and working papers.
- Bank statements, invoices, contracts, payroll records, books export, rent agreements, transaction reports or project documents relevant to the case.
- A short written summary of what happened, what deadline exists, what help you need and whether support can be remote or must be local.
How to get better quotes faster
- Mention whether you need one-time filing, urgent correction, registration, calculator review, audit, monthly retainer, appeal, technology build or advisory review.
- Add approximate transaction count, employee count, turnover range, number of filings/years pending, and any notice deadline so experts can size the work properly.
- For accounting and bookkeeping pages, share the software used, number of bank accounts, monthly invoice count, GST status, payroll size and whether old cleanup is needed.
- For developer pages, share the product type, existing codebase, framework preference, design readiness, integrations, hosting and expected timeline.
- For tax and GST disputes, upload or summarise the section/form/order number, demand amount, date of service, due date and current portal status before asking for a fee quote.
FAQs
What is the difference between ISD and cross-charge?
ISD distributes input-service credit; cross-charge treats inter-branch service supply differently.
Is ISD mandatory for all branches?
Applicability depends on common input services and legal structure; review current GST rules.
Can WorkIndex set up ISD?
Yes. Share GSTIN list, invoices and allocation plan.