Input Service Distributor (ISD) registration under GST

Who needs ISD registration

Think of a company with its head office in Mumbai and GSTINs in Gujarat, Karnataka and Delhi. The statutory audit fee, the ERP subscription, group insurance brokerage and a national advertising campaign are billed to the Mumbai GSTIN but benefit all four states. Those are common input services. The head office must register as an ISD and distribute the credit to the states that use them.

Businesses with registrations in only one state do not need ISD, and a business that gets suppliers to bill each state GSTIN directly for its own share of a service has fewer invoices to distribute.

How the ISD registration works

ISD is a separate registration on the same PAN, applied for through REG-01 by selecting the ISD option. It is in addition to the head office's normal GSTIN. Suppliers of common services must address their invoices to the ISD GSTIN for the credit to be distributed. The ISD handles only input services, not goods or capital goods.

• Separate GSTIN for the ISD, alongside the normal registration.
• Common service invoices addressed to the ISD GSTIN.
• Goods and capital goods are outside ISD distribution.

Distribution and returns

The ISD issues ISD invoices to the recipient branches and files GSTR-6 every month. Credit for a service used by one branch goes to that branch; credit for a service used by several branches is split among them in proportion to their turnover for the relevant period, under Rule 39. Distribution is done in the same month the credit is received. The recipient branches see the distributed credit flow into their own records and use it like other credit.

Common mistakes

Many businesses continued receiving common invoices on the head office GSTIN after April 2025 and claimed the full credit there. Credit used by other states should not sit with the head office. Others registered as ISD but forgot to update supplier master data, so invoices still came to the old GSTIN.

• Not registering as ISD despite having multi-state branches.
• Distributing credit to a branch that did not use the service.
• Missing the monthly GSTR-6.

Getting help

A professional can identify which of your services are common, obtain the ISD registration, update supplier billing and prepare monthly GSTR-6 distribution.

Get it handled for you

Need GST registration done right the first time? Our chartered accountants prepare the documents, file the application and handle any query, so you do not have to visit the GST office. Call or WhatsApp +91 63677 44602, or use the form below.

This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.