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RCM on ISD

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This query is : Resolved

Quick Summary

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.

Mohit sachdeva

Mohit sachdeva (Querist)

09 April 2025 If we take ISD Registration. then ISD can accept that invoices which attract RCM Liability????

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

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.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

29 September 2025 Good luck..

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