GST RCM and ISD

[Madhavan iyengar]

A Company located in gujarat receives technical services invoice from its parent and pays RCM - IGST on same under its normal GST registration in Gujrat

The Company has a ISD registration in Gujrat and now wants to distribute this RCM credit to other units since the other technical services are for 3 gst regd locations including gujrat

Can Company in Gujrat first raise invoice on ISD - for IGST and then distribute credit to other units including Gujrat and what will be the basis for distribution ie For Gujarat CGST/SGST and other states as IGST

Experts kindly whether this is proper and what is required to be done so that it is in compliance with law

AI Summary

Company Seeks to Distribute RCM IGST Credit Across Multiple Locations Using ISD Registration and Turnover Ratio A company in Gujarat receives a technical services invoice from its parent company and pays RCM IGST under its regular GST registration. The company, which also has an ISD registration, seeks to distribute this RCM credit to other units across three GST-registered locations, including Gujarat. The query is whether the company can first issue an invoice to the ISD for IGST and then distribute the credit, using CGST/SGST for Gujarat and IGST for other states. The expert advises raising a cross-charge invoice on the Gujarat ISD registration, allowing the ISD to distribute the credit based on the turnover ratio.