- The ISD mechanism under GST allows centralized offices to distribute input service tax credits to multiple registered locations of the same legal entity.
- ISD registration is now mandatory (effective 01.04.2025) for offices receiving invoices for input services on behalf of distinct persons.
- ISDs distribute only input service credits (CGST, SGST, IGST), separating eligible and ineligible credits, with the goal of distributing all credit each month.
- Recipients claim ITC based on ISD-issued invoices or credit notes, which must specify they are for input tax credit distribution.
Source: mastersindia.co
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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