Input Service Distribution (ISD) Invoice: A Complete Guide (2025)

With the implementation of the Goods and Services Tax (GST) regime, Input Service Distributor (ISD) has emerged as a critical mechanism for the distribution of Input Tax Credit (ITC) among multiple units of an organization. An ISD invoice is a key document required to legally distribute ITC across units or branches.

This article provides a comprehensive guide on ISD invoice format, essential details, legal requirements, and compliance norms, as per the CGST Rules and relevant GST notifications, updated for 2025.

What is Input Service Distributor (ISD) under GST?

Section 2(61) of the CGST Act, 2017 defines Input Service Distributor (ISD). An Input Service Distributor is an office of the taxpayer (which may be a head office or corporate office) that receives tax invoices for input services and distributes the eligible input tax credit to its various branches or units.

Why is an ISD Invoice Necessary?

An ISD invoice is required to transfer the credit of GST paid on input services from the head office to other units registered under the same PAN but in different states. The invoice ensures that tax credit is passed on in a legal and auditable manner.

Legal Provisions Governing ISD Invoices

Aspect	Relevant Rule	Description
ISD Invoice Format	Rule 54(1) of CGST Rules, 2017	Mandates that ISD invoices must contain specific prescribed details.
ISD Registration	Section 24(viii) of CGST Act, 2017	ISD must be separately registered under GST.
Manner of Distribution	Rule 39 of CGST Rules, 2017	Specifies method and conditions for credit distribution.
ISD Returns	GSTR-6	ISD files GSTR-6 monthly to report ITC distribution.

ISD Invoice Format – Essential Components

An ISD Invoice should be in physical or electronic form and must contain the following mandatory fields as per Rule 54(1) of the CGST Rules:

Sl. No	Field	Description
1	Name, address, and GSTIN of ISD	Details of the Input Service Distributor (head office/corporate office).
2	Consecutive serial number (numeric/alpha)	Unique for each financial year.
3	Date of issue	Date on which the ISD invoice is generated.
4	Name, address, and GSTIN of recipient	Details of the unit to whom ITC is being distributed.
5	Amount of credit distributed	CGST, SGST, IGST, UTGST – separately mentioned.
6	Signature or digital signature	Authorized signatory’s signature (physical or digital).
7	HSN code	HSN for input services (optional in some cases).
8	Original invoice number	Reference number of original invoice received by ISD.

Sample ISD Invoice Format

Here is a sample format of an ISD Invoice under GST:

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ISD INVOICE

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Name of ISD : XYZ Pvt Ltd (Head Office)

Address : 12A, Connaught Place, New Delhi – 110001

GSTIN : 07ABCDE1234F1Z5

Invoice No. : ISD/2025/001

Date of Issue : 14-May-2025

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Recipient Details:

Name : XYZ Pvt Ltd (Maharashtra Unit)

Address : MIDC Industrial Area, Pune, Maharashtra

GSTIN : 27ABCDE1234F1Z7

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Original Invoice Ref. : INV/2025/0421 dated 10-May-2025

Service Description : IT Consultancy Services (HSN: 998313)

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Distributed ITC:

CGST : ₹ 4,000

SGST/UTGST : ₹ 4,000

IGST : ₹ 0

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Total ITC Distributed : ₹ 8,000

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Signature of Authorized Person

(Name, Designation)

XYZ Pvt Ltd

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