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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
————————————————————–
Signature of Authorized Person
(Name, Designation)
XYZ Pvt Ltd
————————————————————–
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