Navigating the credit distribution saga

Navigating the credit distribution saga
The GST Council has its ears to the ground and is seeking to resolve to remove ambiguities. One such recommendation of the Council was to resolve a longstanding debate on whether transferring credit through the Input Service Distributor (ISD) is mandatory or whether a "cross-charge mechanism" can be adopted. The GST Council clarified that the GST law does not mandate taking ISD registration and also positively affirmed that the same can be transferred by raising a tax invoice, i.e., by cross-charging. Contrastingly, the Council also recommended that suitable amendments be made to the law to mandate the ISD mechanism prospectively.
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