This discussion clarifies the process of ISD registration concerning invoices that attract Reverse Charge Mechanism (RCM) liability. While ISDs can distribute RCM credits from April 1, 2025, they cannot directly accept RCM invoices. The recipient must first settle the RCM liability and issue an invoice to the ISD before it can be accepted.
09 April 2025
While ISDs can distribute RCM credits from April 1, 2025, they cannot directly accept RCM invoices without the recipient first paying the RCM liability and issuing an invoice to the ISD.