Parliament had enacted Finance (No. 1) Act, 2024 wherein certain amendments were made to Central Goods and Services Tax Act, 2017.
In the Section 12 of Finance (No. 1) Act, 2024, key amendments were made to Section 20 of CGST Act. The provision has now been notified by the Central Government to be effective from 1st April, 2025, i.e. from Financial Year 2025-26 onwards.
As per the amended Provision, a tax payer having more than one GST registrations is required to compulsorily obtain Registration as Input Service Distributor. The key requirement of ISD is for distributing input tax credit in respect of tax invoices received by them towards receipt of input services, for or on behalf of distinct persons.
The Central Government also introduced Amendment to CGST Rules, 2017, therein providing that ISD shall file return in Form GSTR-6 on the basis of details contained in GSTR-6A.
