diffrence between cross charge and isd

[Rajendrasinh Dodia]

What is difference between cross charge and ISD?

[KASTURI SETHI]

What is your specific problem ?

[Shilpi Jain]

There is no term like 'cross charge' in the law. It is loosely used by all.

Cross charge is a scenario where there is existence of supply between the different GSTINs of the same PAN.

ISD is an office which receives invoice for services supplied at other locations also. So ideally there is no supply of service from the ISD persay.

[Padmanathan KV]

Pls read the Agenda Item 6(iv) of 35th GST Council Meeting along with draft circular annexed as Annexure A of said agenda note. Cross-charge & ISD has been deliberated in detail.

AI Summary

Cross charge denotes supply between distinct GST registrations within same PAN; contrasts with ISD credit distribution. Cross charge is a non statutory term used to describe a supply between different GSTINs under the same PAN, reflecting inter unit supply with associated invoicing and tax consequences. An ISD is an office that receives invoices for centrally procured services and distributes input tax credit to other units; the ISD is not itself the supplier of those services.