The debate between the Input Service Distributor
(ISD) vs. Cross Charge mechanism has been
ongoing since the introduction of the GST regime.
Before this debate gained momentum, the Central
Board of Indirect Taxes and Customs (CBIC) FAQ on
IT and ITES released on 18 August 2017 inter alia
clarified that ISD provision under the CGST Act,
2017, is not mandatory.