What is an Input Service Distributor Under GST? 

An Input Service Distributor (ISD) is a concept under GST that allows an entity to distribute the credit of GST paid on input services to its various divisions and branches with different GSTINs but the same PAN. The input tax credit (ITC), depending on the business's needs, can be distributed on a monthly, quarterly, or yearly basis. 

Effective 1 April, 2025, if your entity receives common input service invoices for multiple GSTINs, you must register as an ISD. ISD is used only to distribute credit on common invoices for input services. It does not include goods. Additionally, to report the distribution of credits, ISD should file monthly returns, i.e., GSTR-6.