The CBIC has issued notification to provide that the effective date for mandatory distribution by Input Service Distributor shall be 01-04-2025
- Category: Notification
- Date: 08-08-2024
Please note that the Finance (No.1) Act, 2024 had made amendment to CGST Act, 2017 providing for mandatory Input Service Distributor (ISD) registration at HO, for distribution of common ITC under forward charge + RCM basis to its distinct persons. These changed were not yet implemented, however, vide Notification No. 16/2024-CT dated. 06.08.2024, these changes stand implemented w.e.f. 1.4.2025. (reference Notifications No. 16/2024-CT dated. 06.08.2024, 12/2024-CT dated. 11.07.2024 and Finance Act (No.1) 2024- annexed herewith).
The GST Council in its 52nd GST meeting held on 7th October, 2023 had already recommended amendment in Rule 39 of CGST Rules, 2017 in respect of the same.
The Central Govt. has accordingly amended Rule 39 (procedure for distribution of input Tax credit by ISD) of CGST Rules, 2017 and this will become applicable from the date to be notified in future(reference Notification No. 12/2024-CT dated. 11.07.2024).
We request you to take due note of the above mandatory requirement to get registered as ISD and distribute common ITC to distinct persons w.e.f. 1.4.25 and take suitable action at your end in timely manner.