GST Council Proposes Amendment in Provision of ISD Mechanism under CGST Act, 2017 and CGST Rules , 2017

The GST Council has proposed an amendment to the provision related to the Input Service Distributor (ISD) mechanism under the CGST Act and the CGST Rules. The proposed changes aim to simplify the allocation of input tax credits among different units of a business, particularly those operating under a centralized registration structure. By refining the ISD mechanism, the council seeks to make it easier for businesses to distribute credits and ensure compliance with GST rules. This amendment is expected to improve operational efficiency and reduce compliance burdens, providing greater flexibility for businesses in managing their GST-related obligations.