Warehouse ISD

This query is : Resolved

Quick Summary

This discussion clarifies whether Input Service Distributor (ISD) can distribute Input Tax Credit (ITC) received under Reverse Charge Mechanism (RCM) for rental godowns. The consensus is that RCM ITC cannot be passed on through ISD, as per GST rules. The query further explores if a regular person, after paying RCM liability for rental godowns, needs to raise an invoice to the ISD unit for distributing this ITC to distinct persons or outside customers.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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05 December 2025 We have various godown in all over India.
We transported goods to various out side customer as well as to our distinct branches. I. e. from one godown ( Branch ) to another godown ( Branch )

We take godown on rental basis & paid rent & also paid RCM on rent.
My question- is ISD applicable on RCM input received

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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06 December 2025 ISD is NOT applicable for RCM ITC.
👉 Input Tax Credit arising under RCM CANNOT be passed on through ISD.

This is clearly specified in Rule 2(1)(m) and Rule 39 of GST Rules.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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11 December 2025 Ok sir, my intention for asking query is - is RCM input invoice should raise to ISD unit. Because from rental godown goods sent to various distinct person, as well as outside customer.
We pay RCM on rental godown.
Specific question - From rental godown send goods to out side customer & distinct person. Hence after discharging rcm liability from regular person, is regular person liable for raising invoice to isd unit, for distributing itc to concern distinct person.

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