This research work presents, different levels of voltage source inverter (VSI) based distributed static compensator (DSTATCOM) in the operation of 3-phase low voltage distribution system. It examines the harmonic distortion of traditional two-level VSI (6-pulses), three-level VSI (12-pulses), five-level VSI (24-pulses) and seven-level VSI (36-pulses). This DSTATCOM is attached at the point of common coupling (PCC) of the electrical utility system (EUS) for mitigating the power quality (PQ) related problems. The main function of the used icos control technique to provide appropriate switching pulses for the semiconductor devices of VSIs, which will help the EUS to eradicate harmonics as per the IEEE-S19-2014 grid code prescribed total harmonic distortion (THD) values. The motto of this work is to select the suitable level of VSI for better performance of EUS.