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ISD registration - RCM security invoice received - how to pay
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....SD registration - RCM security invoice received - how to pay <br> Query (Issue) Started By: - Guuruswamy Raman Dated:- 29-5-2026 Goods and Services Tax - GST <br> Got 7 Replies <br> GST<br> <br> We have one ISD registration - we received RCM invoice (security ). how to pay the GST RCM amount and claim ITC --Reply By: Ganeshan Kalyani The Reply: Yes, this is the practical way to cater to the RCM....
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..... Self invoice also to be raised. --Reply By: YAGAY andSUN The Reply: Under GST law, an Input Service Distributor (ISD) registration cannot discharge liability under Reverse Charge Mechanism (RCM). In cases where services such as security services are received and are liable to GST under RCM, the tax must be paid by a regular GST registration and not through the ISD GSTIN. Since an ISD registra....
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....tion is only meant for distribution of input tax credit (ITC) and does not file GSTR-3B or maintain an electronic cash ledger for tax payment, it is legally not permitted to pay RCM liability. Accordingly, the regular GST registration of the company should discharge the RCM liability in cash through the electronic cash ledger, report the same in GSTR-3B, and thereafter avail eligible ITC subject t....
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....o Section 16 conditions of the CGST Act. Once the ITC is validly availed by the regular registration, the same may be distributed to other units through the ISD mechanism by issuing ISD invoices in accordance with Rule 39 of the CGST Rules, wherever the input services pertain to multiple branches or registrations. Thus, the correct legal sequence is: payment of RCM by the regular GST registration ....
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....availment of ITC distribution of credit through ISD, if eligible. This position has been affirmed by the Karnataka High Court in M/s. Micro Labs Limited vs Joint Commissioner of Central GST, wherein the Court held that an ISD registration is merely a mechanism for distribution of credit and cannot be treated as a taxable person for payment of RCM liability. --Reply By: Sadanand Bulbule The Reply....
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....: RCM liability cannot be paid thorugh ISD registration. It has to be discharged by the regular GST registration in cash and ITC can thereafter be availed and distributed through ISD, if eligible. --Reply By: Sadanand Bulbule The Reply: Refer the following: 2026 (4) TMI 1044 - KARNATAKA HIGH COURT - M/s. MICRO LABS LIMITED Versus JOINT COMMISSIONER OF CENTRAL GST OFFICE OF THE COMMISSIONER OF ....
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....CENTRAL GST PUNE-II, JOINT/ADDITIONAL COMMISSIONER OF CENTRAL TAX BENGALURU AND JOINT/ADDITIONAL COMMISSIONER OF COMMERCIAL TAXES BENGALURU --Reply By: Shilpi Jain The Reply: Ensure that the invoice is taken in the regular GSTIN in the same state where the ISD is registered. Rcm gets discharged by this regular GSTIN and an invoice is issued by this GSTIN to ISD registration for further distrib....
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....ution. --Reply By: Amit Agrawal The Reply: One may refer to Rule 54 (1A) of the CGST Rules, 2017. These are ex facie views of mine and the same should not be construed as professional advice / suggestion or recommendation. --Reply By: Raam Srinivasan Swaminathan Kalpathi The Reply: Dear Querist Report the RCM liability in GSTR-1 Table 4B on or before the due date (11th of the subsequent mont....
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....h) and then file GSTR-6 before the 13th instant distributing the eligible amount through an ISD invoice. Rule 39 and Rule 54 are relevant here which please go through and adhere to the same. Kindly note to distribute through ISD in the same month in which the ITC was availed. Thanks <br>***<br> Discussion Forum - Knowledge Sharing....