GST RCM and ISD, Goods and Services Tax - GST

[Madhavan iyengar]

A Company located in gujarat receives technical services invoice from its parent and pays RCM - IGST on same under its normal GST registration in Gujrat

The Company has a ISD registration in Gujrat and now wants to distribute this RCM credit to other units since the other technical services are for 3 gst regd locations including gujrat

Can Company in Gujrat first raise invoice on ISD - for IGST and then distribute credit to other units including Gujrat and what will be the basis for distribution ie For Gujarat CGST/SGST and other states as IGST

Experts kindly whether this is proper and what is required to be done so that it is in compliance with law

Posts / Replies

[Ganeshan Kalyani]

A cross charge invoice with GST to be raised on Gujarat ISD registration. The ISD can then distribute the credit based on turnover ratio.