Page 43 - Chap7 ITC

Answer:- Computation of ITC to be distributed by ISD

S. Particulars Pune Unit (₹) Chennai Kolkata Bengaluru
No Unit (₹) Unit (₹) Unit (₹)
1 IGST credit of ₹3,00,000, CGST credit of ₹30,000 (IGST 3,00,000)
and SGST credit of ₹30,000 specifically attributable (CGST 30,000)
to Pune unit [Note 1] (SGST 30,000)

2 IGST credit of ₹24,000, CGST credit of ₹6,000 and
SGST credit of ₹ 6,000 specifically attributable to 36,000
(IGST)
Chennai unit [Note 2]

3 24,000 (CGST)
Eligible ITC pertaining to input services used by all 24,000 (SGST) 1,44,000 48, 000 1,92,000
units and centres [Note 3] (IGST) (IGST) (IGST)
48,000 (IGST)
4 Ineligible ITC pertaining to input services used by 8,000 (CGST) 48, 000 16, 000 64, 000
all units and centres [Note 4] 8,000 (SGST) (IGST) (IGST) (IGST)
16,000 (IGST)

5 Inputs used by Pune unit and Kolkata centre [Note 5] Nil Nil Nil Nil
6 Input services used by Chennai unit and Bengaluru 30,000 40,000
centre [Note 6] (IGST) (IGST)

Notes:
(1) Since Pune is in the same state as the ISD, it receives IGST ₹3,00,000, CGST ₹30,000, and SGST ₹30,000
directly.
(2) Since Chennai is in a different state than the ISD, its total GST credit of ₹36,000 is distributed as IGST ₹36,000
(3) Pune: ₹24,000 (CGST), ₹24,000 (SGST), ₹48,000 (IGST).

Chennai: ₹1,44,000 (IGST).
Kolkata: ₹48,000 (IGST).
Bengaluru: ₹1,92,000 (IGST).
(4) Pune: ₹8,000 (CGST), ₹8,000 (SGST), ₹16,000 (IGST).
Chennai: ₹48,000 (IGST).
Kolkata: ₹16,000 (IGST).
Bengaluru: ₹64,000 (IGST).

(5) ISD can only distribute ITC for common input services and not for goods (inputs or capital goods).
(6) Proportional Distribution of Additional ITC (₹70,000) Between Chennai & Bengaluru (Turnover Ratio 3:4)
Ü Chennai– ₹ 30,000 .
Ü Bengaluru – ₹ 40,000.

Q.36 Input Service Distributor (ISD) of a company is registered separately in the State of Kerala and is
distributing Input Tax Credit (ITC) to other units in the company. Following details are furnished for a
particular month, and you are required to help the ISD department in distributing the ITC to other units that
are carrying on manufacturing, supplying goods and services to customers.

S.No. Particulars Amount in lakh(₹)
Turnover in the relevant month of each of the units:
1 Mumbai (Maharashtra) 12.00
2 Bangalore (Karnataka) 60.00

3 Hyderabad (Andhra Pradesh) 36.00
4 Trivandrum (Kerala) 72.00

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