XYZ Ltd, having its head office at Mumbai, is registered as Input Service Distributor (ISD). It has three units in different cities situated in 'Mumbai', 'Jabalpur' and 'Delhi' which are operational in the current year.

CS Professional · Advanced Tax Laws and Practice · PYQS · June 2018
XYZ Ltd, having its head office at Mumbai, is registered as Input Service Distributor (ISD). It has three units in different cities situated in 'Mumbai', 'Jabalpur' and 'Delhi' which are operational in the current year. XYZ Ltd. furnishes the following information for the month of July 2017: CGST paid on services used only for Mumbai Unit: ₹ 3,00,000 IGST, CGST & SGST paid on services used for all units: ₹ 12,00,000 Total turnover of the units for the previous financial year is as follows: Unit Turnover (₹) Total Turnover of three units ₹ 10,00,00,000 Turnover of Mumbai unit ₹ 5,00,00,000 Turnover of Jabalpur unit ₹ 3,00,00,000 Determine the credit to be distributed by XYZ Ltd. to each of its three units.

Answer & Explanation:

Input Tax Credit to be distributed by XYZ Ltd. a registered ISD on different Units for July, 2017 Particulars Credit to be distributed (Amount in ₹) Total Credit Mumbai Jabalpur Delhi CGST paid on the services used for Mumbai office only 300000 300000 - - IGST, CGST and SGST paid on the services used for all units in operation during the year (see note) 1200000 600000 360000 240000 Total 1500000 900000 360000 240000 Note: The input-tax credit has been distributed on all the units on the pro-rata basis of the turnover of each of the Units in the ratio of 5:3:2.

Topics: GST

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