My Project is being created under ISV layer instead of CUS layer
Hi amandeepsin,
Please check the correct forum for creating your question next time. I found it in the CRM forum where it belongs in the Dynamics 365 Finance forum. I moved your question to the correct forum for you.
About your question, a project is not managing the layer, it is the model. As you mentioned you have the wrong model in your project, then go to the project properties and change the model.
In case the model also has a wrong layer selected, you can change this in the model descriptor file. Note that the layer is not that important anymore in Dynamics 365 F&O as all customizations are extension-based. On rare occasions, a duplicate extension of an object will have a conflict where the outer layer (e.g. CUS or USR) might be overriding an inner layer (e.g. ISV or VAR)