RCM under Input Service Distributor (2025)

[Raghav Mehra]

Queries on RCM under ISD

E.g. Regular Taxpayer (RT) is in UP and ISD is in UP also, RT has received legal services from lawyer in Delhi in July 25

so, RCM is applicable accordingly

RT has paid IGST under RCM in July 25 GSTR-3B and availed ITC also.

Now in Aug 25, this ITC is to be transferred to ISD

Please confirm the below points:

1. Credit transfer Invoice (CTI) [No E-Invoice] is to be prepared to transfer ITC to ISD, but in that tax would be CGST/SGST as ISD and RT both are in UP
2. This invoice would be added in RT GSTR-1 of Aug 25 in B2B to flow the ITC to GSTR-6A
3. In RT GSTR-3B the ITC claimed in July 25 (IGST) would be reversed.

AI Summary

Dispute over e-invoice requirement for credit-transfer invoice and ITC handling after RCM IGST payment (Section 16, e-invoice rules) A taxpayer in Uttar Pradesh received legal services from a provider in Delhi and discharged RCM by paying IGST and availing ITC in July; the ITC is to be transferred to the ISD (also in UP) in August. The taxpayer queried whether a credit-transfer invoice without e-invoice should be issued showing CGST/SGST, whether it must be reported in GSTR-1 B2B to populate GSTR-6A, and whether the July IGST ITC must be reversed in GSTR-3B. The respondent stated that the GST paid under RCM should be billed to the ISD via a regular tax invoice (e-invoice) and that no reversal of ITC in the taxpayer's registration is required; the asker disputed the e-invoice obligation as it is not an outward supply.