3586380 - Handling RCM scenario in ISD solution: GST IN

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.

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SAP S/4HANA
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SAP S/4HANA Cloud Public Edition

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