ISD vs. Cross Charge – The Saga Continues

11^th July 2023 witnessed the 50^th Goods and Services Tax Council meeting under the Goods and Services Tax ('GST') regime. The Council, from the very beginning, has considered the concerns raised by the industry from time to time and has come up with the recommendations to provide reliefs to businesses in India.

The theme of the 50^th GST Council meeting was no different, in which the Council has addressed several contentious issues being faced by industry and issued necessary clarifications. The subject matter of this article revolves around the recommendation of the GST Council and the clarification brought in by CBIC Circular No. 199/2023-GST, dated 17 July 2023 with respect to distribution of credit through Input Service Distributor ('ISD').