Question 8: Our factory is in Faridabad and we have registered office in Mumbai. Since our Banking operations are in Mumbai, hence all banking operations as well as other documentations are carried out in this office. We have employed 3-4 employees to look after all these operations. We have applied for ISD Registration.
Kindly advice on following:
1) Whether we require ISD registration or normal GST registration for our Mumbai office with reason thereof.
2) Since there is no output liability at Mumbai then how we shall be able to utilize the input credit.

Answer: Your office in Mumbai is using it's infrastructure to provide services to Faridabad Factory what ever your office is doing that is used by the factory so the Mumbai office is providing service to Faridabad factory. The registration as ISD is to be taken when some Establishment is arranging services for the factory (other business places ) The mumbai office is not out sourcing service but it self providing service so you should take registration as a supplier. As per schedule 1 clause 2 to the CGST Act the services provided by one distinct person to other is taxable even if no consideration is charged The same is as follow Schedule 1 clause 2

2. Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business: Provided that gifts not exceeding ======= ====================================================== ========================================So you are suggested to surrender ISD and take normal registration as supplier .You have to raise invoice for the services and chareg tax on it. This will be also beneficial to you because if you are raising invoice as service provider then you can claim credit of all inwards like photocopy paper ,furniture or TV purchased and used in office of Mumbai. (Reply Dt. 19/12/2017)