GST Input Service Distribution Overview
Overview
Input Service Distributor (ISD) is an office of the supplier which distributes credit pertaining to Input Services (CGST, SGST and/IGST) to various locations of the supplier. The recipient locations can be inter-state or intra-state, but they should have the same PAN as that of the distributing location. GST Input Service Distribution functionality can be used to distribute CGST & SGST/IGST paid on Input services (Input Tax Credit) to other locations. This functionality is applicable only for Services.
System does not allow posting any sales transactions for a location if it contains a registration number which has GST Input Service Distribution activated.
Following is the lists of setups that are required to be configured.
- Locations
- General Ledger Setup
- Source Code Setup
- GST Posting Setup
- GST Component Distribution
To set up ISD on location
This setup is required to identify that this location is applicable for Input Service Distribution.
Choose the
icon, enter Location, and then choose the related link.Fill in the fields as described in the following table.
Field Description GST Registration No. Select the relevant GST registration number, which should be marked true as Input Service Distributor.
To set up ISD on general ledger setup
This setup is required to define the number series for distribution.
Choose the
icon, enter General Ledger Setup, and then choose the related link.Fill in the fields as described in the following table.
Field Description GST Distribution Nos. Specify the number series code for GST Distribution.
To set up ISD on source code setup
This setup is required to define the source code for distribution.
Choose the
icon, enter Source Code Setup, and then choose the related link.Fill in the fields as described in the following table.
Field Description GST Distribution Specify the relevant source code for GST Distribution .
To set up ISD on GST posting setup
This setup is required to define the general ledger accounts for distribution.
Choose the
icon, enter GST Posting Setup, and then choose the related link.Fill in the fields as described in the following table.
Field Description Receivable Acc. Interim (Dist) Specify the relevant general ledger account. Receivable Acc. (Dist) Specify the relevant general ledger account.
To set up ISD on GST component dist. list
This setup is required to define the GST components for distribution functionality.
Choose the
icon, enter GST Component Dist. List, and then choose the related link.Fill in the fields as described in the following table.
Field Description GST Component Code Specify the relevant component code. Distribution Component Code Specify the relevant distribution component. Intrastate Distribution Specify whether this is applicable for intrastate distribution or not. Interstate Distribution Specify whether this is applicable for interstate distribution or not.