Section 20: Manner of distribution of credit by Input Service Distributor

Q: What does Section 20 of The Central Goods and Services Tax Act, 2017 (CGST) deal with?

Section 20 CGST pertains to "Manner of distribution of credit by Input Service Distributor". It is part of the The Central Goods and Services Tax Act, 2017, a legislation enacted by the Parliament of India. Section 20 of The Central Goods and Services Tax Act, 2017 (CGST) governs manner of distribution of credit by Input Service Distributor. As verified on 19 May 2026.

Q: Is Section 20 CGST still in force?

Yes, Section 20 of the The Central Goods and Services Tax Act, 2017 is currently in force across the Republic of India.

Q: What is धारा 20 CGST?

धारा 20 CGST is the Devanagari Hindi reference for Section 20 of the The Central Goods and Services Tax Act, 2017. Section 20 of The Central Goods and Services Tax Act, 2017 (CGST) governs manner of distribution of credit by Input Service Distributor. As verified on 19 May 2026.

Q: What is Dhara 20 CGST?

Dhara 20 CGST is the Roman Hindi reference for Section 20 of the The Central Goods and Services Tax Act, 2017. "Dhara" means "Section" in Hindi. Section 20 of The Central Goods and Services Tax Act, 2017 (CGST) governs manner of distribution of credit by Input Service Distributor. As verified on 19 May 2026.

Q: How to cite Section 20 of The Central Goods and Services Tax Act, 2017?

Cite as: "Section 20, The Central Goods and Services Tax Act, 2017 (CGST)" in legal briefs. For academic writing, use the BlueBook format: The Central Goods and Services Tax Act, 2017, § 20 (India).

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(1)

The Input Service Distributor shall distribute the credit of central tax as central tax or integrated tax and integrated tax as integrated tax or central tax, by way of issue of a document containing the amount of input tax credit being distributed in such manner as may be prescribed.

(2)

The Input Service Distributor may distribute the credit subject to the following conditions, namely:—

(a) the credit can be distributed to the recipients of credit against a document containing such details as may be prescribed;

(b) the amount of the credit distributed shall not exceed the amount of credit available for distribution;

(c) the credit of tax paid on input services attributable to a recipient of credit shall be distributed only to that recipient;

(d) the credit of tax paid on input services attributable to more than one recipient of credit shall be distributed amongst such recipients to whom the input service is attributable and such distribution shall be pro rata on the basis of the turnover in a State or turnover in a Union territory of such recipient, during the relevant period, to the aggregate of the turnover of all such recipients to whom such input service is attributable and which are operational in the current year, during the said relevant period;

(e) the credit of tax paid on input services attributable to all recipients of credit shall be distributed amongst such recipients and such distribution shall be pro rata on the basis of the turnover in a State or turnover in a Union territory of such recipient, during the relevant period, to the aggregate of the turnover of all recipients and which are operational in the current year, during the said relevant period.

(a) the "relevant period " shall be—

(b) the expression "recipient of credit " means the supplier of goods or services or both having the same Permanent Account Number as that of the Input Service Distributor;

(c) the term "turnover ", in relation to any registered person engaged in the supply of taxable goods as well as goods not taxable under this Act, means the value of turnover, reduced by the amount of any duty or tax levied [under entries 84 and 92A] [Substituted 'under entry 84' by Act No. 31 of 2018, dated 29.8.2018.] of List I of the Seventh Schedule to the Constitution and entries 51 and 54 of List II of the said Schedule.