ITC Rules – Credit Distribution Procedure in case of ISD
I.Distribution to one or more recipients – Section 20(2)(d)(e)
- Credit to be distributed to recipients whether registered or not, from amongst the total of all the recipients to whom input tax credit is attributable, including the recipient(s) who are engaged in making exempt supply, or are otherwise not registered for any reason –
C1 = (t1/T)*C
where,
“C” is the amount of credit to be distributed,
“t1” is the turnover, as referred to in section 20, of person R1 during the relevant period, and
“T” is the aggregate of the turnover of all recipients during the relevant period;