- Businesses must use the Input Service Distributor (ISD) mechanism to claim Input Tax Credit (ITC) under the Goods and Services Tax (GST) system.
- This change is effective from April 1, 2025.
- The ISD mechanism replaces the previous flexibility where businesses could choose between the ISD mechanism and cross-charge method for distributing common ITC.
Source: vatcalc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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