Important for entities with multi-state presence!
The latest GST notification mandates compulsory Input Service Distributor (ISD) registration from April 1, 2025. Ensure your compliance and stay ahead of the curve.
Entities must view ISD setup beyond mere compliance and consider cash flow implication as well.
Key evaluation points include:
1.) Impact Analysis: Assess changes in transfer of input tax credit (ITC) from common expenses like software licensing, training expenses, consulting fees, etc
2.) Process Changes: Implement new processes for classification of ISD-related transactions & distribution of such ITC. Create a mechanism for monthly ISD distribution.
3.) Enhanced compliance: Pro-actively ensure compliances to avoid penalties. Streamlining ITC Distribution might help in optimizing the Credits & improve Cash Flow.
4.) ERP Adjustments: Update ERP for correct reporting. Early preparation and adherence to the guidelines are essential to mitigate risks.
Prepare now to ensure a seamless transition!
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