TaxTMI 
TaxTMI 
1 wrong registration decision =Rs.1,00,00,000+ lost in credit.
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.... wrong registration decision =Rs.1,00,00,000+ lost in credit.<br>By: - Pradeep Reddy<br>Income Tax<br>Dated:- 4-6-2025<br>🚨 1 wrong registration decision = Rs.1,00,00,000+ lost in credit. You used to ask: "Do I need an ISD registration?" Now the question is: "Why didn't we register sooner?" Imagine it's 2029. You're being audited. You claimed ITC on common services like legal, soft....
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....ware, and audit services. But your business never registered as an Input Service Distributor. And the result? → Denied credit. → And a long, painful fight with the department. Here's what you need to know: Starting April 2025... → ISD registration is mandatory → No more choice between ISD and cross-charge → Especially if your HO receives services for multiple GSTI....
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....Ns This is operational now. → Your HO gets a separate ISD GSTIN → Vendors bill the ISD GSTIN directly → The ISD claims ITC → ITC is then distributed to other GSTINs using tax invoices → You file GSTR-6 by the 13th of every month Simple on paper. But the cost of getting it wrong? It's huge. So, what's the fix? Use what I call the "ISD Integration Protocol." d....
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....04; Get a dedicated ISD GSTIN ✔ Instruct vendors to bill the right entity ✔ Document your approach for HO-to-ISD RCM flows ✔ Distribute credit monthly... no delays, no carry forward ✔ Maintain audit-ready records for every step Also ...don't confuse ISD with Cross Charge. → ISD = Third-party services → Cross Charge = Internal shared services (like HR or....
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.... finance) There's still some ambiguity on intra-state invoicing from HO to ISD. But until clarified, your only safeguard is consistency + documentation. GST's getting stricter. Revenue intelligence is getting sharper. Compliance isn't just a box to tick... it's a lever for protection. Have you already set up your ISD GSTIN or are you still planning?<br> Scholarly articles for knowledge shari....
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....ng by authors, experts, professionals ....