Concept of Input Service Distributor in GST :

The Existing Model of Input Service Distributor (ISD) for the purpose of distribution of input credit on services has been adopted in the Model GST Law with modifications to align the concept with the framework of GST law. In the existing model of ISD, an office of manufacturer or service provider who procures services which are used by or intended to be used by the different factories/offices (collectively called ‘units’) of the said manufacturer /service provider can distribute the respective input credit on such services to the units to which such credit may be attributed, by using the ISD mechanism provided in the CENVAT Credit Rules, 2004 (CCR).