How to Distribute RCM Credit through ISD
Akshay Kishor Dalwale (Audit Assistant) (39 Points)
12 May 2020Akshay Kishor Dalwale (Audit Assistant) (39 Points)
12 May 2020
Mohit Jagnani
(Professional - CA firm)
(524 Points)
Replied 12 May 2020
Akshay Kishor Dalwale
(Audit Assistant)
(39 Points)
Replied 12 May 2020
Mohit Jagnani
(Professional - CA firm)
(524 Points)
Replied 12 May 2020
Akshay Kishor Dalwale
(Audit Assistant)
(39 Points)
Replied 12 May 2020
CA Haritha Komma
(Chartered Accountant)
(1147 Points)
Replied 12 May 2020
Yaa. You are correct..
ISD can distribute the ITC only to the extent of GST on invoices which are raised by vendors on ISD GSTIN.
In the current scenario, RCM is paid with regular GSTIN and ITC can also be availed by regular GSTIN itself and not ISD GSTIN.
Hence, as ITC availed is not in ISD GSTIN, distribution to its branches also is not possible.
Any of the following options can be availed:
1. Raise a GST invoice from regular GSTIN to ISD GSTIN and then distribute to branches through ISD
2. Can cross charge directly to branches with regular GSTIN
Kriti Chhabra
(Senior Associate)
(22 Points)
Replied 12 May 2020
Considering that the services are availed by all the offices, the company can follow ISD distribution route.
In this case, the company can raise a GST invoice on the ISD GSTIN from its normal registration for transferring the credit to ISD registration. Thereafter, the ISD registration can distribute the said credit to other registrations.
Further, reference can also be made to Rule 54(1A) for understanding the particulars to be mentioned on such invoice.
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