Rental Charges of Directors accommodation to be considered as ISD

[Venkata K]

Dear Expert 

One of our client registered dealer in Haryana and Karnataka  and having its ISD registration in Karnataka. Directors accommodation has been provided by company by making payment of rental charges to Unregistered Dealer of Haryana. we are GST under RCM for the rental charges in Haryana Registration. From 01-04-2025 the ISD is made mandatory for the single PAN and 3 registration in different states. In view of this compulsion whether my client should treat this rental charges paid towards Directors accommodation as common credit and shall transfer the same to ISD for further distribution? 

AI Summary

ISD Registration Mandatory from 2025 for Single PAN Multi-State Businesses under GST Rule; Rental Charges as Common Input Credit? A company with registrations in Haryana and Karnataka, holding an ISD registration in Karnataka, pays rental charges for directors' accommodation to an unregistered dealer in Haryana and accounts for GST under reverse charge in Haryana. From April 1, 2025, ISD registration is mandatory for entities with a single PAN and multiple state registrations. The query concerns whether the rental charges paid should be treated as common input service credit and routed through the ISD for distribution across registrations, given the new ISD compliance requirement.