Each business vertical or place of business holding a separate registration in a State may obtain a separate ISD registration, and credit is distributed only to the distinct person to whom it is attributable. The conditions of sections 16 and 17, and reversals under sections 17(1), 17(2) and 17(4), are to be complied with by the recipients of credit and not by the ISD. Wrong distribution attracts penalty on the ISD under section 122(1)(ix), and excess credit is recovered from the recipients under section 21.

Input tax credit is ‘available for distribution’ in the month in which the ISD ascertains it to be prima facie eligible after it appears in FORM GSTR-6A, and eligible and ineligible credit is to be distributed separately. Invoices issued under rule 54(1A) by a registration with the same PAN to transfer credit to the ISD do not form part of ‘turnover in State’, the credit so transferred is not ‘Net ITC’ for refund, and the transferring registration is not required to reverse it.