Topic
Publish Date
If you run a business with registrations in multiple States/UTs, you already know the recurring pain: common expenses (audit fees, software subscriptions, brand/marketing, HR, legal, security, cloud services) are often billed to one location, while the benefit is enjoyed across many. Under GST, that's not just an accounting allocation problem-it's a tax-position problem........... Read More
"Same-Month ISD Credit" Rule Struck Down: Telangana High Court Draws a Red Line
Input Service Distributor (ISD) credit is meant to be a "seamless flow" mechanism-an internal allocation tool that ensures GST paid on common input services is fairly and proportionately distributed to the right registrations. Yet, for years, businesses have faced a recurring compliance trap: what if eligible input tax credit (ITC) is accumulated over a period and distributed later-especially at year-end-rather than "month-by-month".......... Read More
GST Paid On Advance For Services- How ISD will distribute the ITC
ISD registration is mandatory with effect from 01.04.2025. Accordingly, if you have multiple units like A, B and C on same the PAN but having different GSTIN and all three units are receiving any service from third party and a single tax invoice is received from such third party in the name of unit A, then in such situation unit A has to obtain ISD registration compulsory for distributing the credit of such invoice to their other units B and C.................... Read More
How ISD will distribute the ITC of RCM
An Input Service Distributor (ISD) is a taxpayer who receives tax invoices for the services which are used by its branches. It distributes the tax paid known as the Input Tax Credit (ITC), to such branches on a proportional basis by issuing ISD invoices. The branches can have different GSTINs but must have the same PAN as that of ISD. It is important to note that the ISD mechanism is meant only for distributing the credit on common invoices.................... Read More
ISD Unleashed: A Deep Dive into Its Meaning and Functionality
In large, multi-location businesses, managing input tax credits (ITC) for services shared across various branches can become a challenge. The Input Service Distributor (ISD) mechanism under the Goods and Services Tax (GST) addresses this issue by enabling the centralized distribution of ITC for common input services used by multiple branches. In this article, we will explore the concept of ISD in depth................. Read More