3573453 - GST IN : Changes in ISD solution applicable from 1 April, 2025 - SAP ERP & SAP S/4HANA

Starting April 1, 2025, the Input Service Distributor (ISD) mechanism under the CGST Act will be mandatory for distributing Input Tax Credit (ITC) on common input services, including both domestic and imported services.

Amendments related to the definition of Input Service Distributor (ISD) in Section 2(61) and the manner of credit distribution by ISD in Section 20 of the CGST Act will take effect on April 1, 2025.

Businesses need to identify services that must be routed through ISD and determine the states where ISD registration is required based on their procurement patterns. Timely communication with vendors is essential to ensure invoices for common services are correctly raised on the ISD registration.

"Image/data in this KBA is from SAP internal systems, sample data, or demo systems. Any resemblance to real data is purely coincidental." 

• SAP ERP
• SAP S/4 HANA On-premise
• SAP S/4 HANA Cloud Private Edition

ISD, J1IG_ISDN, RCM, Union Budget, 1st April, 2025, Input Service Distributor, Input Service Distribution, CGST, India, GST, Goods and Services tax, Section 2(61), Credit distribution, transfer of credit, ECC, S/4HANA, S/4HANA Cloud Private Edition , KBA , FI-LOC-MM-IN , India (aka XX-CSC-IN-MM) , FI-LOC-LO-IN , India , Problem